2023 New York Laws › UDA - Urban Development Corporation Act 174/68

Chapter 174 of the laws of 1968
Section   1.       Short title.
2.       Statement of legislative findings and purposes.
3.       Definitions.
4.       New York state urban development corporation.
5.       Powers of the corporation.
6.       Sale or lease of land use improvement projects.
6-a*.    Sale or lease of infrastructure projects.
* NB  Not  implemented  due  to defeat of the Jobs for the new, New York
bond act in November, 1992
7.       Sale or lease of residential projects.
8.       Sale or lease of industrial projects.
9.       Sale or lease of civic projects.
9-a.     Financial  assistance  for  small  and   medium-sized
business assistance projects.
9-b.
9-c.     Rules and regulations.
9-d.     Reports and evaluation.
9-e.     Creating   a   Puerto   Rican   and  Latino  business
development center.
9-f.     Special  assistance  for   small   and   medium-sized
businesses  which  are  adversely  affected  by the
absence of eligible reservists  ordered  to  active
duty with the armed forces.
10.      Findings of the corporation.
11.      Construction contracts.
12.      Subsidiaries: how created.
13.      Acquisition of real property.
13-a.    Conveyance of state lands.
14.      Acquisition  of  real property from a municipality or
an urban renewal agency.
15.      Special provisions relating to residential projects.
16.      Cooperation with municipalities.
16-a.    Regional revolving loan trust fund.
16-b.    Job retention and defense  industry  working  capital
loan program.
16-c.    Minority-  and  women-owned  business development and
lending program.
16-d.    Urban and community development program.
16-e.    Regional economic development partnership program.
16-f.    Bonding guarantee assistance program.
16-g.    Child care facilities construction program.
16-h.    The JOBS Now program is hereby created.
16-i.    The empire state economic development fund.
16-j.    Strategic training alliance program.
16-k.    Capital access program.
16-l.    Rural revitalization program.
16-m.    The empire state economic development fund.
16-n.    Restore New York's Communities Initiative.
16-n*2.  Collection of payments in lieu of taxes  pursuant  to
leases  with respect to parcels within the Brooklyn
bridge park civic project.
16-o.    The  community  development  financial   institutions
program.
16-p.    The investment opportunity fund.
16-q.    The upstate regional blueprint fund.
16-r.    The downstate revitalization fund.
16-s.    The  upstate  agricultural  economic development fund
and healthy food / healthy communities initiative.
16-t.    Small business revolving loan fund.
16-u.    Innovate NY fund.
16-v.    New  York state business incubator and innovation hot
spot support act.
16-w.    Beginning farmers NY fund.
16-x.    Dairy promotion act.
16-y.    Marketing of agricultural products.
16-z.    Marketing orders.
16-aa.   Life sciences initiatives program.
16-dd.   Community development revolving loan program.
16-ee.   Loans to social and economic equity applicants.
16-ff.   COVID-19  pandemic  small  business  recovery   grant
program.
16-gg.   Small business seed funding grant program.
16-gg*2. Division of Broadband Access.
16-hh.   Small business and entrepreneurs grant program.
16-ii.   Empire AI consortium reports.
17.      Bonds and notes of the corporation.
18.      Bond authorization.
19.      Security   for   bonds  or  notes;  construction  and
acquisition of projects.
20.      Reserve funds and appropriations.
21.      Trust funds.
22.      Exemption from taxation.
23.      Notes and bonds as legal investments.
24.      Agreement with the state.
25.      State's right to require redemption of bonds.
26.      State  payments  to  municipalities   and   political
subdivisions.
27.      Remedies of noteholders and bondholders.
28.      Monies of the corporation.
29.      Assistance by state officers, departments, boards and
commissions.
30.      Reports and evaluations.
30-a.Enacted without section heading).
31.      Court proceedings; preferences; venue.
31-a.    Actions against corporation.
32.      Special  provisions  relating  to  directors  of  the
corporation and members of  the  business  advisory
council for urban development.
33.      Inconsistent provisions of other laws superseded.
34.      Construction.
35.      Separability.
36.      Limitation on new projects
37.      Assistance; application and evaluation, generally.
38.      Small  business  and  minority-owned  and women-owned
business   enterprises    transportation    capital
assistance and guaranteed loan program.
39.      Lease and operation of seventh regiment armory.
41.      International  computer chip research and development
center.
42.      New York state modernization projects.
43.      2008 Economic development initiatives.
44.      Issuance of certain bonds or notes.
45.      NY-SUNY 2020.
46.  Enacted without section heading).
47.  Enacted without section heading).
48.      Authorization   for   transportation   infrastructure
finance and innovation act loans.
49.  Enacted without section heading).
50.  Enacted without section heading).
51.  Enacted without section heading).
52.      Small  business  innovation   research   (SBIR)/small
business   technology   transfer  (STTR)  technical
assistance program.
52-a.    Small business innovation research and small business
technology transfer matching grant program.
53.  Enacted without section heading).
54.  Enacted without section heading).
54-a.    Personal income tax notes; 2022.
54-b.    Personal income tax notes.
55.  Enacted without section heading).
55-a.    Line of credit facilities; 2022.
55-b.    Line of credit facilities.
56.      State-supported debt; 2021.
56-a.    State-supported debt; 2022.
57.  Enacted without section heading).
58.      Gateway project.
58*2.    Reporting.
59.  Enacted without section heading).
§ 1. Short title. This act shall be known and may be cited as the "New
York state urban development corporation act".
§ 2. Statement of legislative findings  and  purposes.  It  is  hereby
found  and  declared  that  there  exists in urban areas of this state a
condition of substantial and persistent unemployment and underemployment
which causes hardship to many individuals  and  families,  wastes  vital
human  resources,  increases  the public assistance burdens of the state
and municipalities, impairs the security of family life, contributes  to
the  growth  of  crime  and delinquency, prevents many of our youth from
finishing  their  educations,  impedes   the   economic   and   physical
development  of  municipalities  and  adversely  affects the welfare and
prosperity of all the people of the  state.  Many  existing  industrial,
manufacturing and commercial facilities in such urban areas are obsolete
and  inefficient,  dilapidated, and without adequate mass transportation
facilities  and  public  services.   Many   of   such   facilities   are
underutilized  or  in  the process of being vacated, creating additional
unemployment.  Technological  advances  and  the  provision  of  modern,
efficient  facilities  in  other  states will speed the obsolescence and
abandonment of existing facilities causing serious injury to the economy
of the state. Many existing and planned  industrial,  manufacturing  and
commercial  facilities  are, moreover, far from or not easily accessible
to the places of residence of substantial numbers of unemployed persons.
As a result, problems of chronic unemployment are not  being  alleviated
but   are  aggravated.  New  industrial,  manufacturing  and  commercial
facilities are required to attract and house new industries and  thereby
to  reduce  the  hazards of unemployment. The unaided efforts of private
enterprise have not met and cannot meet  the  needs  of  providing  such
facilities  due  to problems encountered in assembling suitable building
sites, lack of adequate public services, the unavailability  of  private
capital  for  development  in  such  urban  areas,  and the inability of
private enterprise alone to plan, finance and coordinate industrial  and
commercial  development  with  residential  developments for persons and
families of low income and with public services and mass  transportation
facilities.
It   is   further   found  and  declared  that  there  exist  in  many
municipalities   within   this   state   residential,    nonresidential,
commercial,  industrial or vacant areas, and combinations thereof, which
are slum or blighted, or which  are  becoming  slum  or  blighted  areas
because   of  substandard,  insanitary,  deteriorated  or  deteriorating
conditions, including obsolete and dilapidated buildings and structures,
defective  construction,  outmoded  design,  lack  of  proper   sanitary
facilities  or  adequate  fire  or  safety  protection,  excessive  land
coverage,  insufficient  light  and  ventilation,  excessive  population
density, illegal uses and conversions, inadequate maintenance, buildings
abandoned or not utilized in whole or substantial part, obsolete systems
of   utilities,  poorly  or  improperly  designed  street  patterns  and
intersections, inadequate access to areas, traffic congestion  hazardous
to  the  public  safety, lack of suitable off-street parking, inadequate
loading and unloading facilities, impractical street widths,  sizes  and
shapes,  blocks  and lots of irregular form, shape or insufficient size,
width  or  depth,  unsuitable  topography,  subsoil  or  other  physical
conditions,   all   of  which  hamper  or  impede  proper  and  economic
development of such areas and which impair or arrest the sound growth of
the area, community or municipality, and the state as a whole.
It is further  found  and  declared  that  there  is  a  serious  need
throughout  the  state  for adequate educational, recreational, cultural
and  other  community  facilities,  the  lack  of  which  threatens  and
adversely  affects  the health, safety, morals and welfare of the people
of the state.
It is further  found  and  declared  that  there  continues  to  exist
throughout  the state a seriously inadequate supply of safe and sanitary
dwelling accommodations for persons and families  of  low  income.  This
condition  is  contrary to the public interest and threatens the health,
safety, welfare, comfort and security of the people of  the  state.  The
ordinary  operations  of  private  enterprise cannot provide an adequate
supply of safe and sanitary dwelling  accommodations  at  rentals  which
persons and families of low income can afford.
It  is  hereby  declared  to  be  the policy of the state to promote a
vigorous and growing economy, to  prevent  economic  stagnation  and  to
encourage  the  creation  of  new  job opportunities in order to protect
against  the  hazards  of  unemployment,  reduce  the  level  of  public
assistance  to  now indigent individuals and families, increase revenues
to the state and  to  its  municipalities  and  to  achieve  stable  and
diversified  local  economies.  In furtherance of these goals, it is the
policy of the state to retain existing industries  and  to  attract  new
industries  through  the  acquisition,  construction, reconstruction and
rehabilitation of industrial and  manufacturing  plants  and  commercial
facilities,  and  to  develop  sites  for  new industrial and commercial
building. It is further declared to  be  the  policy  of  the  state  to
promote  the  development  of  such  plants  and  facilities, reasonably
accessible to residential facilities, in those areas  where  substantial
unemployment  or  underemployment exists, to the end that the industrial
and commercial development of our urban  areas  will  proceed  in  sound
fashion   and   in   coordination  with  development  of  housing,  mass
transportation and public services, and that job opportunities  will  be
available in those areas where people lack jobs.
It  is  further  declared to be the policy of the state to promote the
safety, health, morals and welfare of the people of  the  state  and  to
promote  the  sound growth and development of our municipalities through
the correction of such substandard, insanitary,  blighted,  deteriorated
or   deteriorating   conditions,  factors  and  characteristics  by  the
clearance, replanning,  reconstruction,  redevelopment,  rehabilitation,

restoration  or  conservation  of  such  areas,  and of areas reasonably
accessible thereto the undertaking of  public  and  private  improvement
programs  related  thereto,  including  the  provision  of  educational,
recreational   and   cultural   facilities,  and  the  encouragement  of
participation in these programs by private enterprise.
It is further declared to be the policy of the state  to  promote  the
safety,  health,  morals  and welfare of the people of the state through
the provision of adequate, safe and sanitary dwelling accommodations and
facilities incidental or appurtenant thereto for persons and families of
low income.
For these purposes, there should be created a  corporate  governmental
agency to be known as the "New York state urban development corporation"
which,  through  issuance  of  bonds and notes to the private, investing
public, by encouraging maximum participation by the  private  sector  of
the  economy,  including the sale or lease of the corporation's interest
in  projects  at  the  earliest  time  deemed  feasible,   and   through
participation  in  programs  undertaken  by  the state, its agencies and
subdivisions, and by municipalities  and  the  federal  government,  may
provide or obtain the capital resources necessary to acquire, construct,
reconstruct,  rehabilitate  or  improve  such industrial, manufacturing,
commercial,  educational,  recreational  and  cultural  facilities,  and
housing  accommodations  for  persons  and  families  of low income, and
facilities incidental or appurtenant  thereto,  and  to  carry  out  the
clearance,   replanning,   reconstruction  and  rehabilitation  of  such
substandard and insanitary areas.
It is further declared to be the policy of New York state to encourage
the  development  of  research  and  development  facilities  and   high
technology   industrial   incubator  space  at  institutions  of  higher
education located in this state and authorized to confer degrees by  law
or  by the board of regents, or on lands in reasonable proximity to such
institutions provided that (i) in the case of research  and  development
facilities  such  facilities  are for the cooperative use of one or more
such institutions  and  one  or  more  business  corporations,  research
consortia  or  other  industrial  organizations  involved  in  research,
development, demonstration, or other technologically oriented industrial
activities; and (ii) in the case of high technology industrial incubator
space, such space shall be for rental to business concerns which are  in
their  formative  stages  and  which  are  involved  in  high technology
activities, including but not limited to business concerns initiated  by
students,  employees  of such institution, including faculty members and
other persons or firms academically associated with such institution.
It  is   hereby   declared   that   the   acquisition,   construction,
reconstruction,   rehabilitation  or  improvement  of  such  industrial,
manufacturing  and  commercial  facilities,  and   of   such   cultural,
educational  and  recreational  facilities  including but not limited to
facilities identified as projects and called for to  implement  a  state
designated  heritage  area management plan as provided in title G of the
parks,  recreation  and  historic  preservation  law;   the   clearance,
replanning,  reconstruction  and  rehabilitation of such substandard and
insanitary areas; and the  provision  of  adequate,  safe  and  sanitary
housing  accommodations  for persons and families of low income and such
facilities as may be incidental or appurtenant thereto are  public  uses
and  public  purposes  for  which public money may be loaned and private
property may be acquired and tax exemption granted, and that the  powers
and  duties  of  the  New  York  state  urban development corporation as
hereinafter prescribed are necessary  and  proper  for  the  purpose  of
achieving the ends here recited.
§  3.  Definitions. As used in this act, the following words and terms
shall have the following meanings  unless  the  context  shall  indicate
another or different meaning or intent:
(1)  "Bonds"  and  "notes". The bonds and notes respectively issued by
the corporation pursuant to this act.
(2) "Comptroller". The comptroller of the state.
(3)  "Corporation".  The  corporate  governmental  agency  created  by
section four of this act.
(4)  "Housing Company". A company organized pursuant to the provisions
of either article two, four, five  or  eleven  of  the  private  housing
finance law.
(5)  "Local  Development  Corporation".  A corporation incorporated or
reincorporated pursuant to the provisions of  article  fourteen  of  the
not-for-profit corporation law.
(6)   PROJECT:   A  specific  work  or  improvement  including  lands,
buildings, improvements, real and personal properties  or  any  interest
therein,  acquired,  owned, constructed, reconstructed, rehabilitated or
improved by the corporation or any subsidiary thereof,  whether  or  not
still  owned  or  financed by the corporation or any subsidiary thereof,
including a residential project,  an  industrial  project,  a  land  use
improvement  project,  a  civic  project,  an  industrial  effectiveness
project, a small and medium-sized business assistance project,  a  fruit
growing,  fruit  processing,  or winery business project, or an economic
development project, all as defined herein, or any combination  thereof,
which   combination   shall   hereinafter  be  called  and  known  as  a
"multi-purpose project". The term "project" as used herein shall include
projects, or any portion of a project.
(a)  "Residential  project".  A  project  or   that   portion   of   a
multi-purpose project designed and intended for the purpose of providing
housing  accommodations  for  persons or families of low income and such
facilities as may be incidental or appurtenant thereto.
(b) "Industrial project". A project or that portion of a multi-purpose
project designed and intended for the purpose  of  providing  facilities
for  manufacturing,  warehousing, research, business or other industrial
or commercial purposes, including  but  not  limited  to  machinery  and
equipment  deemed  necessary  for  the  operation thereof (excluding raw
material, work in process or stock in trade).
(c) "Land Use Improvement project". A  plan  or  undertaking  for  the
clearance,   replanning,   reconstruction   and   rehabilitation   or  a
combination of these and other methods, of a substandard and  insanitary
area, and for recreational or other facilities incidental or appurtenant
thereto,  pursuant  to  and  in  accordance with article eighteen of the
constitution  and  this   act.   The   terms   "clearance,   replanning,
reconstruction and rehabilitation" shall include renewal, redevelopment,
conservation,  restoration  or improvement or any combination thereof as
well as the testing and reporting of  methods  and  techniques  for  the
arrest, prevention and elimination of slums and blight.
(d)  "Civic  project".  A  project  or that portion of a multi-purpose
project designed and intended for the purpose  of  providing  facilities
for  educational,  cultural,  recreational, community, municipal, public
service or other civic purposes.
(e) "Industrial effectiveness project". A project or that portion of a
multi-purpose project designed and  intended  for  the  purpose  of  (i)
improving  the productivity and competitiveness of an industrial firm or
group of industrial firms through such means as, but not limited to, the
redesign of production facilities, the introduction  of  new  production
processes  and  management  systems, the expansion or diversification of
product lines, the development of new markets, and labor and  management

cooperative   efforts  to  enhance  productivity;  (ii)  implementing  a
corporate restructuring or turnaround plan for an industrial firm; (iii)
effecting the  transfer  of  the  ownership  and  control  of  a  viable
industrial  firm  to its employees, managers or other investors resident
in the state; or (iv) enhancing the opportunity for an  industrial  firm
to  create  or  retain  jobs,  thereby  promoting  fuller employment and
economic development in the state.
(f) "Small and medium-sized business assistance  project".  A  project
designed  and  intended  for  the  purpose  of  providing  assistance to
industrial firms that employ five hundred or fewer employees within  the
state on a full-time basis.
(g)  Economic  development  project.  The  acquisition,  construction,
reconstruction, rehabilitation, or improvement  of  a  project  financed
pursuant  to  the  empire  state  economic  development  fund which will
achieve the purposes of facilitating the creation or retention  of  jobs
or  increasing  business activity within a municipality or region of the
state.
(h) "fruit growing, fruit processing, or winery business  project".  A
project or that portion of a multi-purpose project designed and intended
for the purpose of establishing, maintaining, or expanding fruit growing
acreage  or  operations, or for providing facilities for the production,
manufacture, processing, warehousing, research, or distribution and sale
of fresh fruits or the processing of such fruits into juices, wines,  or
other food products. As specified in paragraph (b-1) of subdivision 6 of
section  16-l  of  this  act, such project costs may include, but not be
limited to, the cost of buildings, machinery, equipment,  New  York  raw
fruits,  New York unprocessed or partially processed fruits, root stock,
other personal property, materials, working capital, or stock  in  trade
required to establish such project.
* (6)  "Project".  A  specific  work  or  improvement including lands,
buildings, improvements, real and personal properties  or  any  interest
therein,  acquired,  owned, constructed, reconstructed, rehabilitated or
improved by the corporation or any subsidiary thereof,  whether  or  not
still  owned  or  financed by the corporation or any subsidiary thereof,
including a residential project,  an  industrial  project,  a  land  use
improvement  project,  a  civic  project,  an  industrial  effectiveness
project, a small and medium-sized business  assistance  project,  or  an
infrastructure  project,  all  as  defined  herein,  or  any combination
thereof, which combination shall hereinafter be called and  known  as  a
"multi-purpose project". The term "project" as used herein shall include
projects, or any portion of a project.
(a)   "Residential   project".   A   project  or  that  portion  of  a
multi-purpose project designed and intended for the purpose of providing
housing accommodations for persons or families of low  income  and  such
facilities as may be incidental or appurtenant thereto.
(b) "Industrial project". A project or that portion of a multi-purpose
project  designed  and  intended for the purpose of providing facilities
for manufacturing, warehousing, research, business or  other  industrial
or  commercial  purposes,  including  but  not  limited to machinery and
equipment deemed necessary for  the  operation  thereof  (excluding  raw
material, work in process or stock in trade).
(c)  "Land  Use  Improvement  project".  A plan or undertaking for the
clearance,  replanning,   reconstruction   and   rehabilitation   or   a
combination  of these and other methods, of a substandard and insanitary
area, and for recreational or other facilities incidental or appurtenant
thereto, pursuant to and in accordance  with  article  eighteen  of  the
constitution   and   this   act.   The   terms  "clearance,  replanning,
reconstruction and rehabilitation" shall include renewal, redevelopment,

conservation, restoration or improvement or any combination  thereof  as
well  as  the  testing  and  reporting of methods and techniques for the
arrest, prevention and elimination of slums and blight.
(d)  "Civic  project".  A  project  or that portion of a multi-purpose
project designed and intended for the purpose  of  providing  facilities
for  educational,  cultural,  recreational, community, municipal, public
service or other civic purposes.
(e) "Industrial effectiveness project". A project or that portion of a
multi-purpose project designed and  intended  for  the  purpose  of  (i)
improving  the productivity and competitiveness of an industrial firm or
a group of industrial firms through such means as, but not  limited  to,
the   redesign   of  production  facilities,  the  introduction  of  new
production  processes  and  management   systems,   the   expansion   or
diversification  of  product  lines, the development of new markets, and
labor and management cooperative efforts to enhance  productivity;  (ii)
implementing  a  corporate  restructuring  or  turnaround  plan  for  an
industrial firm; (iii) effecting  the  transfer  of  the  ownership  and
control  of a viable industrial firm to its employees, managers or other
investors resident in the state; or (iv) enhancing the  opportunity  for
an  industrial  firm  to create or retain jobs, thereby promoting fuller
employment and economic development in the state.
(f) "Small and medium-sized business assistance  project".  A  project
designed  and  intended  for  the  purpose  of  providing  assistance to
industrial firms that employ five hundred or fewer employees within  the
state on a full-time basis.
(g)  "Infrastructure  project". Capital improvements to publicly-owned
real property under the jobs for the new, New York bond act pursuant  to
article fifteen of the economic development law involving site clearance
or  preparation  or  the  demolition,  construction or reconstruction of
basic utilities, systems or facilities, which, while not  used  directly
for  the production of goods or services, are required as the foundation
for or to promote, stimulate or support economic activity  resulting  in
the retention or creation of permanent private-sector jobs.
* NB  Not  implemented due to defeat of the Jobs for the new, New York
bond act in November, 1992
(7) "Project cost". The  sum  total  of  all  costs  incurred  by  the
corporation  in  carrying  out  all  works  and  undertakings  which the
corporation deems reasonable and necessary  for  the  development  of  a
project.  These  shall  include  but  are not necessarily limited to the
costs of all  necessary  studies,  surveys,  plans  and  specifications,
architectural,  engineering  or  other  special services, acquisition of
land and  any  buildings  thereon,  site  preparation  and  development,
construction,   reconstruction,   rehabilitation,  improvement  and  the
acquisition of such machinery and equipment as may be  deemed  necessary
in  connection  therewith  (other than raw materials, work in process or
stock in trade); the necessary expenses incurred in connection with  the
initial   occupancy   of  the  project;  an  allocable  portion  of  the
administrative and operating expenses of the corporation;  the  cost  of
financing  the  project, including interest on bonds and notes issued by
the corporation to finance the project from the date thereof to the date
when  the  corporation  shall  determine  that  the  project  be  deemed
substantially  occupied; and the cost of such other items, including any
indemnity and surety bonds and premiums on insurance, legal  fees,  fees
and  expenses  of trustees, depositories and paying agents for the bonds
and notes issued by the corporation; and relocation costs,  all  as  the
corporation shall deem necessary.
(8)  "Real  property".  Lands, structures, franchises and interests in
land, including lands under water and riparian rights, space rights  and

air  rights  and  any  and  all other things and rights usually included
within said term. Real property shall also mean and include any and  all
interests  in  such  property  less  than full title, such as easements,
incorporeal  hereditaments and every estate, interest or right, legal or
equitable, including terms  for  years  and  liens  thereon  by  way  of
judgments,  mortgages  or otherwise, and also all claims for damages for
such real estate.
(9) "State". The state of New York.
(10) "State  agency".  Any  officer,  department,  board,  commission,
bureau,  division,  public corporation, agency or instrumentality of the
state.
(11) "Subsidiary". A corporation created in  accordance  with  section
twelve of this act.
(12)  "Substandard  or  insanitary  area".  The  term  "substandard or
insanitary  area"  shall  mean  and  be  interchangeable  with  a  slum,
blighted,  deteriorated  or  deteriorating  area, or an area which has a
blighting  influence  on  the  surrounding  area,  whether  residential,
non-residential,  commercial,  industrial,  vacant  or land in highways,
waterways, railway and  subway  tracks  and  yards,  bridge  and  tunnel
approaches  and  entrances,  or other similar facilities, over which air
rights and easements or other rights of user necessary for the  use  and
development  of such air rights, to be developed as air rights sites for
the elimination of the blighting influence, or any  combination  thereof
and  may  include  land,  buildings  or  improvements, or air rights and
concomitant easements or other rights of user necessary for the use  and
development  of  such  air  rights  not  in  themselves  substandard  or
insanitary.
(13) "Municipality." Any county, city, town or village.
(14)  "Local  governing  body".  The  board  of  supervisors,   county
legislature,  board  of  aldermen,  common council, commission, or other
elective governing board or  body  now  or  hereafter  vested  by  state
statute,  charter  or  other law with jurisdiction to initiate and adopt
local law whether or not such  local  laws  or  ordinances  require  the
approval  of  the  elective chief executive officer or other official or
body to become effective, and except that with respect to a city  having
a  population  of  one  million  or more the term "local governing body"
shall mean the board of estimate.
(15)  "Public  corporation".   A   municipal   corporation,   district
corporation,  or  public  benefit  corporation,  as  all  such terms are
defined in section three of the general corporation law, or  any  agency
or instrumentality of the foregoing.
(16)  "New  community."  A  plan or undertaking for the development of
housing together with such civic, industrial and  commercial  facilities
and   other  ancillary  facilities  as  the  corporation  may  determine
necessary, including the implementation  thereof  through  one  or  more
projects  of  the  corporation and through such participation by private
enterprise as may be necessary or desirable to carry out the development
of such new community.
(17) "Eligible business". For purposes of section  sixteen-a  of  this
act,  a business that is resident in this state, and employs one hundred
or less persons on a full-time basis.
(18) "Regional corporation". For purposes of section sixteen-a of this
act, a not-for-profit or public benefit  corporation  or  consortium  of
such  entities  that  has  formed a not-for-profit corporation, that has
jurisdiction within at least two entire contiguous counties.
(19) "Minority business enterprise". A business enterprise which is at
least fifty-one percent owned,  or  in  the  case  of  a  publicly-owned
business  at least fifty-one percent of the common stock or other voting

interests of which is owned, by one or more minority  persons  and  such
ownership  interest  is  real,  substantial and continuing. The minority
ownership must have and exercise the authority to independently  control
the  day-to-day business decisions of the entity. Minority persons shall
mean persons who are:
(a) Black;
(b) Hispanic persons  of  Mexican,  Puerto  Rican,  Dominican,  Cuban,
Central  or  South American descent of either Indian or Hispanic origin,
regardless of race;
(c) Asian and Pacific Islander persons having origins in the Far East,
Southeast Asia, the Indian sub-continent or the Pacific Islands; or
(d) American Indian or Alaskan Native persons having origins in any of
the original peoples  of  North  America  and  maintaining  identifiable
tribal  affiliations  through  membership and participation or community
identification.
(20) "Women business enterprise". A business enterprise  which  is  at
least  fifty-one  percent  owned,  or  in  the  case of a publicly-owned
business at least fifty-one percent of the common stock or other  voting
interests  of  which  is  owned,  by United States citizens or permanent
resident noncitizens who are women, regardless of race or ethnicity, and
such ownership interest is real, substantial  and  continuing  and  such
women  have  and exercise the authority to independently control the day
to day business decisions of the enterprises.
(21) "Industrial firm". A manufacturing firm involved with extracting,
smelting, recovering, developing,  preparing,  compounding,  converting,
assembling  or producing in any manner minerals, raw materials, products
or substances of any  kind  or  nature,  and  shall  include  facilities
related  thereto  for storage, warehousing or distribution, for research
and development or for the discovery  of  new,  and  the  refinement  of
known, substances, processes and products.
(22)  "Eligible  reservist".  A  member  of a reserve component of the
armed forces  ordered  to  active  duty  during  a  period  of  military
conflict.
(23) "Owner, manager or key employee". A person who:
(a)  has  at least a twenty percent ownership interest in the small or
medium-sized business; or
(b) is a manager responsible for the  day-to-day  operations  of  such
small or medium-sized business concern; or
(c) is an employee of such small or medium-sized business concern with
a  significant  responsibility whose duties cannot be assumed by another
person without substantial impairment to  the  economic  health  of  the
business, as determined by the corporation.
(24) "Period of military conflict". A period:
(a) of war declared by the Congress; or
(b)  of  national  emergency  declared  by  the  Congress  or  by  the
President; or
(c) in which a member of a reserve component of the  armed  forces  is
ordered  to  active  duty  pursuant  to  section 673b of title 10 of the
United States Code.
(25) "Upstate Empire State Development Corporation" shall  be  defined
for  purposes  of  sections  sixteen-q  and  sixteen-s of this act, as a
subsidiary  of  the  urban  development  corporation  established  under
section twelve of this act.
(26)  "Upstate  Chairman"  shall  be  defined for purposes of sections
sixteen-q and sixteen-s of this act, as  the  chairman  of  the  upstate
empire   state  development  corporation,  a  subsidiary  of  the  urban
development corporation established under section twelve of this act.
(27) "Downstate" shall be defined by the chairman subject to  approval
by the board of directors of the urban development corporation.
(28)  "Upstate" shall be defined by the chairman, in consultation with
the chairman  of  the  upstate  empire  state  development  corporation,
subject  to  approval by the board of directors of the urban development
corporation.
(29) "Upstate Agricultural Economic Development Project." For purposes
of section sixteen-s of this  act,  a  project  or  that  portion  of  a
multi-purpose  project shall be designed and intended for the purpose of
establishing,  maintaining,  or  expanding   agricultural   acreage   or
operations,   or   for  providing  facilities  and/or  markets  for  the
production,   manufacturing,   processing,    warehousing,    laboratory
diagnostics,  research, or distribution and sale of crops, livestock and
livestock products as defined in subdivision 2 of  section  301  of  the
agriculture  and markets law. Such project costs may include, but not be
limited to, the cost of land, buildings, machinery, equipment, processed
or partially processed agricultural commodities, root stock,  livestock,
other  personal  property, materials, working capital, or stock in trade
required to establish such project.
(30) "Energy conservation and efficiency projects." A project or  that
portion of a multi-purpose project designed and intended for the purpose
of  reducing  energy  consumption  and  improving  energy  efficiency of
building envelopes, building  systems  or  manufacturing  or  industrial
systems  by  retrofitting  or  modernizing  manufacturing, industrial or
commercial facilities. Energy conservation and efficiency  projects  may
include, but not be limited to: (a) energy audits performed by an energy
auditor  approved  by the New York state energy research and development
authority as defined in section eighteen hundred fifty-one of the public
authorities law; (b) insulation of the  building  structure  or  systems
within   the  building;  (c)  windows  or  doors,  caulking  or  weather
stripping,  multi-glazed  windows  or  doors,  heat  absorbing  or  heat
reflective glazed and coated window or door systems, additional glazing,
reductions  in  glass area or other window and door system modifications
that reduce energy consumption; (d)  automated  or  computerized  energy
control  systems;  (e)  heating,  ventilating or air conditioning system
modifications  or  replacements;  (f)  replacement  or  modification  of
lighting  fixtures  to  increase  the  energy efficiency of the lighting
system without increasing the overall illumination of a facility, unless
an increase in illumination is necessary to conform  to  the  applicable
state  or  local  building code or nationally accepted standards for the
lighting system after the proposed modifications are  made;  (g)  energy
recovery  systems;  (h)  solar  energy generating or heating and cooling
systems or other renewable energy systems; (i) cogeneration or  combined
heat  and  power  systems  that produce steam, chilled water or forms of
energy such as heat, as well as electricity, for use primarily within  a
building  or complex of buildings; (j) energy conservation measures that
provide long-term operating cost reductions;  and  (k)  maintenance  and
operation  of  mechanical  systems that provide long-term operating cost
reductions.
§ 4. New York state urban development corporation. (1) There is hereby
created  the  New  York  state  urban   development   corporation.   The
corporation  shall  be  a  corporate  governmental  agency of the state,
constituting a political subdivision and public benefit corporation. Its
membership  shall  consist   of   nine   directors   as   follows:   the
superintendent of financial services, the chairman of the New York state
science  and  technology foundation, and seven directors to be appointed
by the governor with the advice and consent  of  the  senate.  From  the
seven  directors  appointed  by  him,  the  governor shall designate the

chairman of the corporation and two others who shall all  serve  at  the
pleasure  of  the governor. Of the four remaining directors, one of such
directors first appointed by the governor after the  effective  date  of
this  subdivision as amended shall serve for a term ending January first
next succeeding his appointment, one of such directors shall serve for a
term ending one year from such date, one of such directors  shall  serve
for  a  term  ending two years from such date, and one of such directors
shall serve for  a  term  ending  three  years  from  such  date.  Their
successors  shall  serve  for  terms of four years each. Directors shall
continue in office  until  their  successors  have  been  appointed  and
qualified.  In  the  event  of  a  vacancy  occurring in the office of a
director by death, resignation or otherwise, the governor shall  appoint
a  successor  with the advice and consent of the senate to serve for the
balance of the unexpired term. The governor shall appoint the  president
of the corporation, with the advice and consent of the senate, who shall
be the chief executive officer of the corporation and who shall serve at
the pleasure of the governor. Such president may be one of the directors
appointed by the governor.
(1-a) The superintendent of financial services and the chairman of the
New  York  state  science and technology foundation each may designate a
person from his department to represent  him  at  all  meetings  of  the
corporation  from  which such director may be absent. Any representative
so designated shall have the power to attend and to vote at any  meeting
of the corporation from which the director so designating him is absent,
with  the  same force and effect as if the director designating him were
present and voting. Such designation shall be by  written  notice  filed
with  the  chairman  of  the  corporation  by  the  director  making the
designation. The designation of each such person  shall  continue  until
revoked  at  any  time by written notice to the chairman by the director
making the designation. Such designation shall not limit  the  power  of
the  director making the designation to attend and vote in person at any
meeting of the corporation.
(2) The directors, other than the chairman, shall serve without salary
or other compensation, but each director, including the chairman,  shall
be  entitled to reimbursement for actual and necessary expenses incurred
in the performance of his  or  her  official  duties.  Anything  to  the
contrary   contained   herein  notwithstanding,  the  president  of  the
corporation, whether or not he or she is a director, and the chairman if
he or she is not the president shall be entitled to receive such  salary
as  the  directors  may  determine for their services as chief executive
officer and chairman respectively.
(3)  Such  directors  other  than  the  superintendent  of   financial
services,  the  chairman  of  the  New York state science and technology
foundation, and any director who serves as president of the  corporation
may  engage  in  private employment, or in a profession or business. The
corporation, its directors, officers and employees shall be  subject  to
the  provisions of sections seventy-three and seventy-four of the public
officers law.
(3-a) The state shall save harmless and indemnify any person who shall
have served as a  director,  officer  or  employee  of  the  corporation
against  financial loss or litigation expense arising in connection with
any claim, demand, suit or judgment, or the defense thereof, based on  a
cause  of action, whenever accrued, involving allegations that pecuniary
harm was sustained by any person as a result of any transaction  of  the
corporation  taking place on or after the effective date of the New York
state project finance agency act. In the event any such  claim,  demand,
suit  or  judgment  shall  occur, a director, officer or employee of the
corporation shall be saved harmless and indemnified by the  state  under

this  subdivision  unless  such  individual is found by a final judicial
determination not to have acted in good faith, for a  purpose  which  he
reasonably  believed  to  be in the best interests of the corporation or
not to have had reasonable cause to believe that his conduct was lawful.
In  any  suit  described  in the first sentence of this subdivision, any
director, officer or employee made a party defendant to such suit  shall
be  entitled  to  be  represented  by  private  counsel  of  his choice;
provided, however,  that  the  attorney  general  is  authorized,  as  a
condition   to   indemnification  of  the  fees  and  expenses  of  such
representation, to require that appropriate groups of  such  individuals
be  represented by the same counsel; and provided further, that with the
approval of the attorney general or of a court (obtained by  application
substantially  as  provided  in section seven hundred twenty-five of the
business corporation law), indemnification for such  fees  and  expenses
shall  be  paid  from time to time during the pendency of such suit. The
provisions of this subdivision shall be in addition  to  and  shall  not
supplant  any  indemnification or other benefits heretofore or hereafter
conferred upon directors, officers and employees of the  corporation  by
section  seventeen  of  the  public  officers  law,  by  action  of  the
corporation, or otherwise. The  provisions  of  this  subdivision  shall
inure  only  to  directors,  officers  and employees of the corporation,
shall not enlarge or diminish the rights of any other party,  and  shall
not  impair,  limit  or modify the rights and obligations of any insurer
under any policy of insurance.
(4) The directors  of  the  corporation  shall  serve  ex  officio  as
directors  of  the corporation for urban development and research of New
York, created by the New  York  state  urban  development  and  research
corporation  act,  and  of  the  urban development guarantee fund of New
York, created by the urban development guarantee fund of New  York  act.
The  chairman  of  the  corporation  shall  serve  as  chairman  of  the
corporation for urban development and research of New York  and  of  the
urban development guarantee fund of New York.
(5)  Notwithstanding  any  inconsistent  provisions  of  law, general,
special or local, no officer or employee of the state or  of  any  civil
division thereof, shall be deemed to have forfeited or shall forfeit his
office  or  employment  by reason of his acceptance of membership on the
corporation created by this section; provided, however, a  director  who
holds such other public office or employment shall receive no additional
compensation  or  allowance  for services rendered pursuant to this act,
but shall be entitled to reimbursement  for  his  actual  and  necessary
expenses incurred in the performance of such services.
(6)  The  governor shall appoint a business advisory council for urban
development, to advise and make recommendations to the corporation  with
respect  to  development  policies and programs and to encourage maximum
participation in projects of the corporation by the  private  sector  of
the economy, including members of the council and firms and corporations
with  which  they  are affliated. Such council shall consist of not more
than twenty-five members,  who  shall  serve  at  the  pleasure  of  the
governor,  and  who  shall  be  broadly  representative  of commerce and
industry, the financial  community  and  the  construction  and  housing
industries.  Such  members  shall  serve  without  salary,  but shall be
entitled to  reimbursement  for  their  actual  and  necessary  expenses
incurred in the performance of their duties.
(7)  The  corporation  shall  establish one or more community advisory
committees to consider and advise the corporation upon matters submitted
to them by the corporation concerning the development of any area or any
project, and may establish rules and regulations with  respect  to  such
committees.  The corporation or its successor shall publish and maintain

a list of  all  community  advisory  committee  members,  and  community
advisory  committee  meeting  agendas,  materials,  and  minutes  on its
website. Meeting agendas and materials shall be posted on  such  website
at  least  one  business  day in advance of community advisory committee
meetings. All upcoming meeting times and locations shall  be  posted  on
such  website at least one week in advance. Community advisory committee
meetings shall be accessible for the public to view and attend live. The
members of such  community  advisory  committees  shall  serve,  at  the
pleasure  of  the  corporation, without salary, but shall be entitled to
reimbursement for their actual and necessary expenses  incurred  in  the
performance  of their duties. Notwithstanding any inconsistent provision
of law, general, special or local, no officer or employee of  the  state
or  of  any civil division thereof, shall be deemed to have forfeited or
shall forfeit his or her office or employment by reason of  his  or  her
acceptance of membership on such community advisory committee.
(8)  The  governor may remove any director appointed by him or her for
inefficiency, neglect of duty or misconduct in office after  giving  him
or  her  a copy of the charges against him or her, and an opportunity to
be heard, in person or by counsel, in his or her defense, upon not  less
than  ten  days'  notice.  If  any  such  director shall be removed, the
governor shall file in the office of the department of state a  complete
statement  of charges made against such director and his or her findings
thereon,  together  with  a  complete  record  of  the  proceeding.  The
foregoing  provisions shall not apply in the case of the chairperson and
any other director who serves at the pleasure of the governor.
(9) The corporation and its corporate existence shall  continue  until
terminated by law, provided, however, that no such law shall take effect
so long as the corporation shall have bonds, notes and other obligations
outstanding,  unless  adequate  provision  has been made for the payment
thereof in the documents securing the  same.  Upon  termination  of  the
existence  of  the corporation, all its rights and properties shall pass
to and be vested in the state.
(10) A majority of the directors of the  corporation  then  in  office
shall  constitute  a  quorum  for the transaction of any business or the
exercise of  any  power  or  function  of  the  corporation,  except  as
otherwise  provided  in  section  sixteen,  subdivision two, hereof. The
corporation may delegate to  one  or  more  of  its  directors,  or  its
officers,  agents  and  employees, such powers and duties as it may deem
proper.
(11) The corporation shall take affirmative  action  in  working  with
construction  firms,  contractors  and  subcontractors, labor unions and
manufacturing and industrial firms, to the end that residents  of  areas
in  which  projects are to be located shall be afforded participation in
the construction work  on  projects  of  the  corporation,  and  in  the
business  operations  of  tenants  and  occupants of industrial projects
undertaken by the corporation.
§ 5. Powers of the corporation. Except as otherwise  limited  by  this
act, the corporation shall have power:
(1) To sue and be sued;
(2) To have a seal and alter the same at pleasure;
(3)  To make and execute contracts and all other instruments necessary
or convenient for the exercise of its powers and  functions  under  this
act;
(4)  To  make  and  alter  by-laws  for  its organization and internal
management and, subject to agreements with noteholders  or  bondholders,
to  make rules and regulations with respect to its projects, operations,
properties and facilities, which rules and regulations  shall  be  filed

with  the  department  of  state  in  the manner provided by section one
hundred two of the executive law;
(5)  To  acquire,  hold  and  dispose  of  personal  property  for its
corporate purposes;
(6) To appoint officers, agents and employees, prescribe their  duties
and qualifications and fix their compensation;
(7)  To  acquire  or  contract  to  acquire  from  any  person,  firm,
corporation, municipality, federal or state agency, by grant,  purchase,
condemnation  or otherwise, leaseholds, real, personal or mixed property
or any interest therein; to own, hold, clear, improve and  rehabilitate,
and  to  sell,  assign,  exchange, transfer, convey, lease, mortgage, or
otherwise dispose of or encumber the same;
(8) To create subsidiaries, as provided in section twelve of this act.
(9) To acquire, construct, reconstruct, rehabilitate,  improve,  alter
or  repair or provide for the construction, reconstruction, improvement,
alteration or repair of any project.
(10) To arrange or contract with  a  municipality  for  the  planning,
replanning,  opening,  grading  or  closing of streets, roads, roadways,
alleys or other places, or for the furnishing of facilities or  for  the
acquisition  by a municipality of property or property rights or for the
furnishing of property or services in connection with a project.
(11) To sell, lease, assign, transfer, convey, exchange, mortgage,  or
otherwise  dispose  of  or  encumber any project, and in the case of the
sale of any project, to accept a purchase money mortgage  in  connection
therewith;  and  to  lease, repurchase or otherwise acquire and hold any
project which the corporation has theretofore sold, leased or  otherwise
conveyed, transferred or disposed of.
(12)  To  grant options to purchase any project or to renew any leases
entered into by it in connection with any of its projects, on such terms
and conditions as it may deem advisable.
(13) To prepare or cause to be prepared plans, specifications, designs
and  estimates   of   cost   for   the   construction,   reconstruction,
rehabilitation,  improvement,  alteration  or repair of any project, and
from time to time to  modify  such  plans,  specifications,  designs  or
estimates.
(14)  To  manage  any  project,  whether  then  owned or leased by the
corporation, and  to  enter  into  agreements  with  the  state  or  any
municipality  or  any  agency  or  instrumentality  thereof, or with any
person, firm, partnership or corporation, either public or private,  for
the purpose of causing any project to be managed.
(15)  To  provide  advisory,  consultative,  training  and educational
services,  technical  assistance  and  advice  to  any   person,   firm,
partnership  or corporation, either public or private, in order to carry
out the purposes of this act.
(16) To lend or donate monies, whether secured or  unsecured,  to  any
subsidiary  corporation,  and  to  purchase,  sell or pledge the shares,
bonds or other obligations or securities  thereof,  on  such  terms  and
conditions as the corporation may deem advisable.
(17)  To  make  mortgage  loans,  secured  by  a  first mortgage lien,
including temporary loans or advances,  to  any  subsidiary  corporation
which  is  a housing company, and to undertake commitments therefor. Any
such commitment, mortgage or bonds or notes secured thereby may  contain
such  terms  and conditions not inconsistent with the provisions of this
act as the  corporation  may  deem  necessary  or  desirable  to  secure
repayment  of  its loan, the interest, if any, thereon and other charges
in connection therewith.
(18) Subject to the provisions of any  contract  with  noteholders  or
bondholders  to  consent  to  the  modification, with respect to rate of

interest, time of payments of any installment of principal or  interest,
security,  or  any  other term, of any mortgage, mortgage loan, mortgage
loan commitment,  contract  or  agreement  of  any  kind  to  which  the
corporation is a party.
(19)  In  connection with any property on which it has made a mortgage
loan, to foreclose on any  such  property  or  commence  any  action  to
protect  or  enforce  any  right conferred upon it by any law, mortgage,
contract or other agreement, and to bid for and purchase  such  property
at  any  foreclosure or at any other sale, or acquire or take possession
of any such property; and in such event the  corporation  may  complete,
administer,  pay  the  principal  of  and  interest  on  any obligations
incurred in connection with such property,  dispose  of,  and  otherwise
deal with such property, in such manner as may be necessary or desirable
to protect the interests of the corporation therein.
(20)  To  borrow money and to issue its negotiable bonds and notes and
to provide for the rights of the holders thereof.
(21) As security for the payment of the principal of and  interest  on
any  bonds so issued and any agreements made in connection therewith, to
mortgage and pledge any or all of its projects, whether  then  owned  or
thereafter  acquired,  and to pledge the revenues and receipts therefrom
or from any thereof, and to assign or pledge the lease or leases on  any
portion  or  all  of  said  projects  and to assign or pledge the income
received by virtue of said lease or leases.
(22) To invest any funds of the corporation including  funds  held  in
reserve  or  sinking  funds,  or any monies (including proceeds from the
sale of any  bonds  or  notes  of  the  corporation)  not  required  for
immediate  use or disbursement, at the discretion of the corporation, in
(a) obligations of the state or of the  United  States  government,  (b)
obligations  the  principal  and interest of which are guaranteed by the
state or the United States government, (c) obligations of  agencies  and
instrumentalities  of  the  state  or  of  the  United  States,  or  (d)
certificates of deposit of banks  or  trust  companies  in  this  state,
secured  by  obligations  described  in  clauses (a), (b) or (c) of this
subdivision.
(23) To procure insurance against any  loss  in  connection  with  its
property  and  other assets and operations in such amounts and from such
insurers as it deems desirable.
(24) To engage the services of consultants on  a  contract  basis  for
rendering professional and technical assistance and advice.
(25)  To  contract  for  and to accept any gifts or grants or loans of
funds or property or financial or other aid in any form from the federal
government or any agency or instrumentality thereof, or from  the  state
or  any  agency or instrumentality thereof, or from any other source and
to comply, subject to the provisions of this act,  with  the  terms  and
conditions thereof.
* (26) To make loans, whether secured or unsecured, in connection with
the  corporation's  participation in a project (as defined in this act),
to any person or  entity,  whether  public  or  private,  and  to  issue
commitments for such loans, provided that such loans and commitments are
made or issued in compliance with guidelines established by the board of
directors of the corporation; to provide for the repayment of such loans
on  terms  and  conditions  that  the  directors of the corporation deem
advisable and to receive and hold real property or personal property  as
security for the repayment of such loans.
* NB Repealed July 1, 2025
(27)  To  use  a portion of appropriated funds generally designated as
high risk targeted investment funds to establish a loan fund to be  used

to  make  loans  to  business  enterprises  located  within empire zones
designated pursuant to article eighteen-B of the general municipal law.
(28) To do any and all things necessary or convenient to carry out its
purposes and exercise the powers given and granted in this act.
(29)  Subject  to  any  agreement  with noteholders or bondholders, to
enter into agreements to pay  annual  sums  in  lieu  of  taxes  to  any
municipality  or  political  subdivision of the state, in respect of any
real property which is  owned  by  the  corporation  or  any  subsidiary
thereof and is located in such municipality or political subdivision.
(30)  To  provide  priority  assistance to projects involving industry
clusters.  The  term  "industry  cluster"  shall   mean   a   geographic
concentration  of  competitive  firms  or  establishments  in  the  same
industry that  either  have  close  buy-sell  relationships  with  other
industries   in   the  region,  use  common  technologies,  or  share  a
specialized labor pool that provides firms with a competitive  advantage
over the same industry in other places.
§  6.  Sale  or  lease  of  land  use  improvement  projects.  (1) The
corporation may sell or lease for a term not exceeding ninety-nine years
all or any portion of the real or personal property constituting a  land
use improvement project to any person, firm, partnership or corporation,
either  public  or  private,  upon  such  terms and conditions as may be
approved by the corporation, whenever the corporation  shall  find  that
such  sale  or lease is in conformity with a plan or undertaking for the
clearance, replanning, reconstruction or rehabilitation of  sub-standard
and  insanitary  areas  in  the  municipality  in  which  the project is
located. Such sale or lease may be made:
(a) to any housing company, without public  bidding,  public  sale  or
public notice;
(b)  to  any  local  development  corporation, without public bidding,
public sale or public notice;
(c) to any other person, firm,  partnership  or  corporation,  without
public  bidding  or public sale, provided there is published in at least
one newspaper of general circulation in the municipality  in  which  the
project  is  located  a  notice  which  shall include a statement of the
identity of the proposed purchaser or lessee and of his proposed use  or
reuse  of  the  land  use improvement project area or applicable portion
thereof, the price or rental to be paid by such purchaser or lessee, all
other essential conditions of such sale or lease, and a statement that a
public hearing  upon  such  sale  or  lease  will  be  held  before  the
corporation  at  a  specified time and place on a date not less than ten
days after such publication,  and  provided  further  that  such  public
hearing is held in accordance with such notice.
* § 6-a. Sale or lease of infrastructure projects. (1) Notwithstanding
the  provisions  of  any  general,  special or local law, subject to any
agreement with noteholders or bondholders, the corporation may  sell  or
lease any infrastructure project, without public bidding or public sale,
for  such  price  or  rental  and  upon such terms as may be agreed upon
between the corporation and such purchaser or lessee, either  prior  to,
at  the  date  of, or subsequent to the completion of the project by the
corporation, provided, however, that in the case of a  lease,  the  term
thereof shall not exceed ninety-nine years. Where such contract for sale
or  lease  is  entered  into  after the commencement of construction and
prior to the physical completion of the improvement to  be  conveyed  or
leased, the corporation may complete the construction and development of
such improvement prior to the actual conveyance or lease.
(2) Except with respect to projects sold or leased to the state or any
agency  or  instrumentality  thereof,  to  any municipality or agency or
instrumentality thereof, or to any public corporation, before  any  sale

or  lease  of  all  or  a substantial part of a project as authorized by
subdivision one of this section is consummated, there shall be published
in at least one newspaper of general circulation in the municipality  in
which the project is located a notice which shall include a statement of
the identity of the proposed purchaser or lessee, the price or rental to
be  paid,  all  other  essential conditions of such sale or lease, and a
statement that a public hearing upon such sale or  lease  will  be  held
before  the corporation at a specified time and place on a date not less
than ten days after such publication, and such hearing shall be held  in
accordance with such notice.
(3)  The  responsibilities  of  the corporation in connection with the
implementation of this section  may  include  requesting  and  receiving
title  to  real  property  from  the  commissioner  of  general services
pursuant to section thirteen-a of this act. Such transfers shall  be  on
such  terms  as the commissioner of general services and the chairman of
the corporation shall determine, and shall,  subject  to  any  agreement
with noteholders and bondholders, include a reversionary interest to the
state   and  the  terms  on  which  the  property  may  subsequently  be
transferred.
* NB Not implemented due to defeat of the Jobs for the new,  New  York
bond act in November, 1992
§  7.  Sale  or lease of residential projects. (1) The corporation may
sell or lease for a term not exceeding ninety-nine years  a  residential
project  only  to  a  housing  company  or  to a municipality or housing
authority. It may enter into a contract for such sale  or  lease  either
prior to, at the date of, or subsequent to the completion of the project
by  the  corporation.  Where  such contract for sale or lease is entered
into after the commencement of construction and prior  to  the  physical
completion  of the improvement to be conveyed or leased, the corporation
may complete the construction and development of such improvement  prior
to the actual conveyance or lease.
(2) Any such sale or lease pursuant to subdivision one of this section
may  be  made  without  public  bidding,  public  sale or public notice,
pursuant to such negotiated contract, agreement or lease and  containing
such provisions, limitations, requirements, terms and conditions, as the
corporation,  within  its  discretion,  may determine to be necessary or
desirable.
§ 8. Sale or lease of industrial  projects.  (1)  Notwithstanding  the
provisions  of  any  general,  special  or  local  law,  subject  to any
agreement with noteholders or bondholders, the corporation may  sell  or
lease any industrial project, without public bidding or public sale, for
such  price  or rental and upon such terms as may be agreed upon between
the corporation and such purchaser or lessee, either prior  to,  at  the
date  of,  or  subsequent  to  the  completion  of  the  project  by the
corporation, provided, however, that in the case of a  lease,  the  term
thereof shall not exceed ninety-nine years. Where such contract for sale
or  lease  is  entered  into  after the commencement of construction and
prior to the physical completion of the improvement to  be  conveyed  or
leased, the corporation may complete the construction and development of
such improvement prior to the actual conveyance or lease.
(2) Before any sale or lease of all or a substantial part of a project
as  authorized  by subdivision one of this section is consummated, there
shall be published in at least one newspaper of general  circulation  in
the  municipality  in  which the project is located a notice which shall
include a statement of the identity of the proposed purchaser or lessee,
the price or rental to be paid, all other essential conditions  of  such
sale  or  lease, and a statement that a public hearing upon such sale or
lease will be held before the corporation at a specified time and  place

on  a  date  not  less  than  ten  days after such publication, and such
hearing shall be held in accordance with such notice; provided, however,
that  if  the  corporation  determines  that  trade  secrets  or   other
confidential  information  about the prospective purchaser's or lessee's
business operations, products, processes or designs would  otherwise  be
revealed  by  such public notice and public hearing, the requirements of
this subdivision may be waived by unanimous vote of the directors of the
corporation.
§ 9. Sale or lease of civic projects. (1)  Subject  to  any  agreement
with noteholders or bondholders, the corporation may sell or lease for a
term  not  exceeding ninety-nine years any civic project to the state or
any agency or instrumentality thereof, to any municipality or agency  or
instrumentality  thereof,  to  any  public  corporation, or to any other
entity which is carrying out a community, municipal, public  service  or
other civic purpose.
(2) Any such sale or lease pursuant to subdivision one of this section
may  be  made without public bidding, public sale or public notice, upon
such terms and conditions as the corporation, within its discretion, may
determine to be necessary or desirable. The corporation may enter into a
contract for a sale or lease as authorized by subdivision  one  of  this
section either prior to, at the date of, or subsequent to the completion
of the project by the corporation. Where such contract for sale or lease
is  entered into after the commencement of construction and prior to the
physical completion of  the  improvement  to  be  sold  or  leased,  the
corporation  may  complete  the  construction  and  development  of such
improvement prior to the actual conveyance or lease.
§ 9-a.  Financial  assistance  for  small  and  medium-sized  business
assistance  projects.  The  corporation  may provide loans for small and
medium-sized business assistance projects for costs associated with:
(1) The renovation or rehabilitation of  industrial  plants  that  are
economically  inefficient  due  to  the  need  for  changes  in  design,
construction, technology or  production  processes;  the  renovation  or
rehabilitation  of  existing  facilities  for  reuse  as  an  industrial
facility; the acquisition of real property and related improvements; new
construction; working capital; and the acquisition of modern  production
technology,  including  machinery, equipment and computerized design and
control  systems,  required  to  improve  production  processes,  expand
existing  or  enter new markets, or to otherwise remain competitive. The
corporation shall determine the terms and interest rates of such  loans,
except  that  no  loan  shall  exceed fifty percent of project costs, or
seven hundred fifty thousand dollars, whichever is less, no  loan  shall
have an interest rate lower than three percent, and no loan shall have a
term that exceeds the estimated useful life of the asset;
(2)  Site  acquisition,  construction,  renovation  or  acquisition of
permanently installed equipment necessary to establish or expand a child
day care facility located on  the  work  site  of  the  industrial  firm
sponsoring  the  child  day care facility or at a proximate site where a
consortia  of  industrial  firms  are  sponsoring  the  child  day  care
facility.    Such  loans  shall  be  made  upon  a  determination by the
corporation that such facility is necessary to improve or  maintain  the
productivity  of the company or companies. Such loans shall only be made
for child day care facilities: (a) that will be used  primarily  by  the
children  of  employees  of  the  company  or  companies  sponsoring the
facility; (b) that will not be operated for profit; (c) that demonstrate
an ability to obtain, from the appropriate  governmental  agencies,  all
necessary  approvals  and licenses required to operate the facility; and
(d) that demonstrate an ability to prevent access  by  children  to  any
equipment  in  facilities  which  could  be injurious to their health or

safety. The corporation shall determine the terms and interest rates  of
such  loans,  except  that no loan shall exceed sixty percent of project
costs, or two hundred fifty thousand dollars, whichever is less, no loan
shall  have an interest rate lower than three percent, and no loan shall
have a term longer than ten years.
§ 9-b. For any positions opened as a  result  of  assistance  provided
pursuant  to  section  nine-a  of this act, industrial firms so assisted
shall first consider persons eligible  to  participate  in  federal  job
training partnership act (P.L. 97-300) programs who shall be referred to
the industrial firm by administrative entities of service delivery areas
created  pursuant  to  such  act  or  by the job service division of the
department of labor.
§ 9-c. Rules and regulations. The corporation shall, assisted  by  the
commissioner  of  economic  development  and  in  consultation  with the
department of economic development, promulgate rules and regulations  in
accordance  with  the state administrative procedure act. Such rules and
regulations shall be  consistent  with  the  program  plan  required  by
subdivision  nineteen of section one hundred of the economic development
law.
§ 9-d. Reports and evaluation. (1) Reporting. The  corporation  shall,
on  or  before  October  1,  1988  and  on  or before each October first
thereafter, submit a report to the governor and the legislature  on  the
operations  and  accomplishments  of the small and medium-sized business
assistance program. The report to be submitted on October 1, 2005 and on
or before each October first thereafter shall be consolidated  with  the
annual  program  report of the corporation required under the provisions
of subdivision (b) of section thirty of this act, as amended.
(2) Evaluation. (a) The corporation shall submit to  the  director  of
the  budget,  the  chairperson  of  the senate finance committee and the
chairperson of the assembly ways and means committee  an  evaluation  of
the  small  and  medium-sized business assistance program prepared by an
entity independent of the  corporation.  Such  an  evaluation  shall  be
submitted  by  September 1, 2005 and by September first every four years
thereafter.
(b) Between evaluation due dates, the corporation shall  maintain  the
necessary   records   and  data  required  to  satisfy  such  evaluation
requirements and to  satisfy  information  requests  received  from  the
director  of the budget, the chairperson of the senate finance committee
and the chairperson of the assembly ways  and  means  committee  between
such evaluation due dates.
§ 9-e. Creating a Puerto Rican and Latino business development center.
The  corporation  shall provide, with the assistance of the commissioner
of economic development and in consultation with  such  commissioner,  a
Puerto  Rican and Latino business development center for the purposes of
rendering technical assistance and market information to  not-for-profit
service  providers and the private businesses servicing Puerto Rican and
Latino communities.
§ 9-f. Special assistance for small and medium-sized businesses  which
are  adversely affected by the absence of eligible reservists ordered to
active duty with the armed forces. (1) In addition to  loans  for  small
and  medium-sized  business  assistance projects authorized by this act,
the corporation is hereby authorized to make loans to assist a small  or
medium-sized  business concern which is likely to suffer economic injury
as the result of the owner, manager or key employee  of  such  small  or
medium-sized business concern who is an eligible reservist being ordered
to  active  military  duty  during  a  period  of military conflict. The
corporation shall determine the term and interest  rate  of  such  loans
except  that no loan shall exceed one hundred fifty thousand dollars, no

loan shall have an interest rate greater than five percent and  no  loan
shall have a term that exceeds a number of years which in the opinion of
the  corporation  is  necessary  for  the small or medium-sized business
concern  to  recover  financially  from  the  absence  of  such eligible
reservist. Any such loan  shall  be  secured  by  a  security  agreement
chattel  paper,  loan  agreement  or such other instruments or documents
deemed necessary or convenient by the corporation to secure the loan. In
determining the economic need for a loan authorized by this section, the
corporation shall consider the decline in income or  gross  receipts  of
the  business  during the period of active military duty of the eligible
reservist. Such loans shall be made in an expeditious manner  to  enable
the  small  or  medium-sized  business concern to recover forthwith from
such absence. Loans made pursuant to this  section  shall  be  used  for
working  capital  by  the  small  or  medium-sized business concern. The
corporation shall render such other assistance and services as it  deems
advisable  and  proper  in  connection  with  such loans and the purpose
therefor.
(2)(a) With respect to any loan granted to  a  small  or  medium-sized
business  concern  pursuant to this act, the corporation may temporarily
suspend the repayment obligation of any small or  medium-sized  business
concern  if any person liable thereon is or if any owner, manager or key
employee is an eligible reservist called to active duty in the  military
service  subsequent to the disbursement of the proceeds of such loan and
such business concern has suffered  or  is  likely  to  suffer  economic
injury  as a result of such order. The suspension, if approved, shall be
effective on the date the corporation  is  notified  that  the  eligible
reservist  has  commenced  active duty status or, at the election of the
corporation it shall be made effective at any  time  subsequent  to  the
date  such  eligible  reservist  entered  active  duty status, and shall
continue for ninety days after such person  is  discharged  or  released
from active duty.
(b)  Within  thirty days after the return to non-active duty status of
any person to whom this subdivision may  apply,  the  corporation  shall
arrange  a  meeting  with the affected small or medium-sized business to
arrange repayment of the loan. The corporation is authorized  to  extend
the terms of any loan or to set a repayment schedule for such loans made
for  a  period of up to one year for each sixty days of active duty, but
not to exceed five years.
(c) If the corporation determines  that  such  small  or  medium-sized
business  concern meets the criteria of this subdivision, it may, in its
discretion, reduce or eliminate the assistance  provided  herein  if  it
determines such business has the financial ability to meet the terms and
conditions  of  the obligation without substantially disrupting business
operations. Any such determination shall be made  only  after  affording
the  applicant  the  opportunity  to  present  information  in person or
through others in support of the request for assistance.
(3) Nothing in this section shall preclude  a  small  or  medium-sized
business  concern  which  is  ineligible  for assistance pursuant to the
provisions of this section from  qualifying  for  any  other  assistance
pursuant  to article 13 of the military law or the Federal Soldiers' and
Sailors' Civil Relief Act of 1940, as amended.
(4) The corporation is directed to liberally construe  the  provisions
of  this  section  to  benefit  eligible small and medium-sized business
concerns in recovering from any demonstrated economic loss caused by the
active military service of the eligible reservist.
§ 10. Findings of the corporation. Notwithstanding any other provision
of this act, the corporation shall not be  empowered  to  undertake  the

acquisition, construction, reconstruction, rehabilitation or improvement
of a project unless the corporation finds:
(a) in the case of a residential project:
(1)  That  there  exists,  in  the  area in which the project is to be
located, or in an area reasonably accessible to such area,  a  need  for
safe  and sanitary housing accommodations for persons or families of low
income, which the operations of private enterprise cannot provide;
(2) That the project has been approved  as  a  project  of  a  housing
company pursuant to the provisions of the private housing finance law.
(b) in the case of an industrial project:
(1)  That  the  area  in  which  the  project  is  to  be located is a
substandard  or  insanitary  area,  or  is  in  danger  of  becoming   a
substandard  or  insanitary  area,  wherein  there exists a condition of
substantial and persistent unemployment or underemployment;
(2) That the acquisition or construction and operation of such project
will prevent, eliminate or reduce  unemployment  or  underemployment  in
such area;
(3)  That  such project shall consist of a building or buildings which
are  suitable  for  manufacturing,  warehousing  or  research  or  other
industrial, business or commercial purposes.
(4)  That adequate provision has been, or will be made for the payment
of the cost of the acquisition, construction, operation, maintenance and
upkeep of such project.
(5) That the acquisition and construction, proposed leasing, operation
and use of  such  project  will  aid  in  the  development,  growth  and
prosperity of the state and the area in which such project is located;
(6)  That  the  plans  and  specifications assure adequate light, air,
sanitation and fire protection.
(c) in the case of a land use improvement project:
(1) That the area  in  which  the  project  is  to  be  located  is  a
substandard   or  insanitary  area,  or  is  in  danger  of  becoming  a
substandard or insanitary area and tends to impair or arrest  the  sound
growth and development of the municipality;
(2)  That  the  project  consists  of  a  plan  or undertaking for the
clearance, replanning, reconstruction and rehabilitation  of  such  area
and  for  recreational  and  other  facilities incidental or appurtenant
thereto;
(3) That the plan  or  undertaking  affords  maximum  opportunity  for
participation  by private enterprise, consistent with the sound needs of
the municipality as a whole.
(d) in the case of a civic project:
(1) That there exists in the area  in  which  the  project  is  to  be
located,  a need for the educational, cultural, recreational, community,
municipal, public service or other civic facility to be included in  the
project;
(2) That the project shall consist of a building or buildings or other
facilities  which  are suitable for educational, cultural, recreational,
community, municipal, public service or other civic purposes;
(3) That such project will be leased to or owned by the  state  or  an
agency  or  instrumentality  thereof,  a  municipality  or  an agency or
instrumentality thereof, a public corporation, or any other entity which
is carrying out a community, municipal, public service  or  other  civic
purpose,  and that adequate provision has been, or will be, made for the
payment of the cost of acquisition, construction, operation, maintenance
and upkeep of the project;
(4) That the plans and specifications assure or will  assure  adequate
light, air, sanitation and fire protection.
(e) in the case of an industrial effectiveness project:
(1)  That  a  feasibility  study  or  productivity  assessment  exists
demonstrating  the  potential  for  future  profitability  of  the  firm
requesting  financial  assistance  and such study or assessment has been
reviewed and approved by the commissioner of economic development;
(2)   That  for  loans  to  implement  a  corporate  restructuring  or
turnaround plan,  the  management  of  the  industrial  firm  requesting
assistance is capable and the firm has a sound business development plan
that includes measures to ensure labor and management cooperation and to
effect changes required to continue as a successful business;
(3)  That  the  requested  financial  assistance is not available from
other public or private financing sources; and
(4) That the area  in  which  the  project  is  to  be  located  is  a
substandard   or  insanitary  area,  or  is  in  danger  of  becoming  a
substandard or insanitary area, wherein  there  exists  a  condition  of
substantial and persistent unemployment or underemployment.
(f)  in  the  case  of  a  small  and medium-sized business assistance
project:
(1) That  the  area  in  which  the  project  will  be  located  is  a
substandard   or  insanitary  area,  or  is  in  danger  of  becoming  a
substandard or insanitary area, wherein  there  exists  a  condition  of
substantial and persistent unemployment or underemployment;
(2)  That  the  project  demonstrates market, management and financial
feasibility and has a clear likelihood of success;
(3) That the industrial firm provides at least a  ten  percent  equity
contribution   and   such   contribution   is  not  derived  from  other
governmental sources;
(4) That the requested financial  assistance  is  not  available  from
other  public  or private financing sources on terms compatible with the
successful completion of the project;
(5) That the  project  will  not  result  in  the  relocation  of  any
industrial  firm  from  one  municipality  within  the  state to another
municipality, except under one of the following conditions: (i) when  an
industrial firm is relocating within a municipality with a population of
at  least  one  million  where  the  governing body of such municipality
approves  such  relocation;  or  (ii)  the  corporation  notifies   each
municipality  from which such industrial firm will be relocated and each
municipality agrees to such relocation; and
(6) That the project is not for the purpose of refinancing any portion
of the total project cost or  other  existing  loans  or  debts  of  the
project sponsor or owner.
(g)  in  the case of all projects, that there is a feasible method for
the relocation of families and individuals displaced  from  the  project
area  into  decent,  safe  and  sanitary dwellings, which are or will be
provided in the project area  or  in  other  areas  not  generally  less
desirable  in  regard  to  public  utilities  and  public and commercial
facilities, at rents or  prices  within  the  financial  means  of  such
families  or  individuals,  and reasonably accessible to their places of
employment.  Insofar as is feasible, the corporation shall offer housing
accommodations to such families and individuals in residential  projects
of   the  corporation.  The  corporation  may  render  to  business  and
commercial tenants and to families or other persons displaced  from  the
project area, such assistance as it may deem necessary to enable them to
relocate.
(h) in the case of all projects, the corporation shall state the basis
for its findings.
§  11.  Construction  contracts. (1) Construction contracts let by the
corporation shall be in conformity with  the  applicable  provisions  of
section  one  hundred  thirty-five  of  the state finance law, provided,

however,  that  construction  contracts  let  by  subsidiaries  of   the
corporation  which  are  housing  companies  shall  be  governed  by the
applicable provisions of  the  private  housing  finance  law;  provided
further,  however, that in the case of industrial projects, whenever the
corporation  determines  that  trade  secrets  or   other   confidential
information   about   the   prospective   project   occupant's  business
operations, products, processes or designs would be revealed  by  public
bidding,  the  requirements  of  section  one hundred thirty-five of the
state finance law with respect to public bidding may be waived. In  such
event,  separate  specifications shall be prepared for, and separate and
independent contracts shall be entered into,  for  the  following  three
subdivisions  of work to be performed: (a) plumbing and gas fitting; (b)
steam heating, hot  water  heating,  ventilating  and  air  conditioning
apparatus; and (c) electric wiring and standard illuminating fixtures.
(2)  The  corporation  may,  in  its  discretion, assign contracts for
supervision  and  coordination  to  the  successful   bidder   for   any
subdivision  of  work  for  which  the  corporation  receives  bids. Any
construction contract awarded by  the  corporation  shall  contain  such
other  terms  and  conditions as the corporation may deem desirable. The
corporation shall not award any  construction  contract  except  to  the
lowest  bidder  who,  in  its  opinion, is qualified to perform the work
required and who is  responsible  and  reliable.  The  corporation  may,
however,  reject any or all bids or waive any informality in a bid if it
believes that the  public  interest  will  be  promoted  thereby.    The
corporation  may  reject  any  bid if, in its judgment, the business and
technical  organization,  plant,  resources,  financial   standing,   or
experience of the bidder justifies such rejection in view of the work to
be performed.
§  12.  Subsidiaries:  how created. (1) The corporation shall have the
right to exercise and perform its powers and functions  through  one  or
more  subsidiary  corporations. The corporation by resolution may direct
any of its directors, officers or employees  to  organize  a  subsidiary
corporation  pursuant  to  either  the  business  corporation  law,  the
not-for-profit corporation law or articles two, four or  eleven  of  the
private  housing  finance  law.  Such  resolution  shall  prescribe  the
purposes for which such subsidiary corporation is to be formed.
Such corporation shall be deemed a subsidiary corporation whenever and
so long as (i) more than half of any voting shares  of  such  subsidiary
are  owned  or  held  by  the  corporation,  or  (ii)  a majority of the
directors, trustees or members of such subsidiary are designees  of  the
corporation.
(2)  The  corporation  may  transfer to any subsidiary corporation any
moneys, real or personal or mixed property or any project  in  order  to
carry  out  the  purposes  of this act. Each such subsidiary corporation
shall have all the privileges,  immunities,  tax  exemptions  and  other
exemptions   of   the  corporation  to  the  extent  the  same  are  not
inconsistent with  the  statute  or  statutes  pursuant  to  which  such
subsidiary was incorporated.
(3)  Notwithstanding  any  provision  of this act to the contrary, the
superintendent of financial services and the chairman of  the  New  York
state  science  and technology foundation shall not serve as a director,
trustee or member of any such subsidiary corporation.
(4) No officer or  director  of  the  corporation  shall  receive  any
additional   compensation,   either   direct  or  indirect,  other  than
reimbursement  for  actual  and  necessary  expenses  incurred  in   the
performance  of  his  duties,  by  reason  of  his  serving as a member,
director, or trustee of any subsidiary corporation.
§ 13. Acquisition of real property. The  corporation,  upon  making  a
finding  that it is necessary or convenient to acquire any real property
for its immediate or future use, may acquire such property in any lawful
manner, pursuant to the provisions of the eminent domain procedure  law,
notwithstanding  that  such  property may already be devoted to a public
use, nor shall such property thereafter be taken for  any  other  public
use without the consent of the corporation.
Prior to the commencement of condemnation proceedings, the corporation
shall  cause a survey and map to be made of the property to be condemned
and file the same in its  office.  There  shall  be  annexed  thereto  a
certificate, executed by such officer or employee as the corporation may
designate, stating that the property described in such survey and map is
necessary for corporate purposes.
§  13-a.  Conveyance  of  state  lands.  The  commissioner  of general
services shall have power, in his discretion, from time to time to grant
and convey to the corporation, upon such terms and conditions  including
consideration  as  the  commissioner  of  general  services  may fix and
determine, unappropriated state  lands,  lands  under  water,  abandoned
canal  lands  and salt springs lands which the corporation shall certify
to be necessary or convenient for its corporate purposes.  Certification
shall  be  evidenced  by  a  formal  request  from  the President of the
corporation.
§ 14. Acquisition of real property from a  municipality  or  an  urban
renewal  agency.  (1) Notwithstanding anything to the contrary contained
in article fifteen or article fifteen-A of the general municipal law  or
in  any  general,  special  or  local law applicable to the sale of real
property by a municipality or an urban renewal agency, a municipality or
an urban renewal agency may, in addition to employing any  other  lawful
method  of utilizing or disposing of any real property and appurtenances
thereto or any interest therein owned  by  such  municipality  or  urban
renewal  agency or acquired by such municipality or urban renewal agency
pursuant  to  article  fifteen  of  article  fifteen-A  of  the  general
municipal  law,  sell, lease for a term not exceeding ninety-nine years,
or otherwise dispose of any such real property and appurtenances thereto
or any interest therein to the corporation for the effectuation  of  any
of  the purposes of an urban renewal program, without public auction, or
sealed bids or public notice.
(2) Notwithstanding the provisions of any general,  special  or  local
law  or  charter, any municipality, by resolution of its local governing
body, is hereby empowered without  referendum,  public  auction,  sealed
bids  or  public  notice,  to  sell,  lease  for  a  term  not exceeding
ninety-nine years, grant or convey to the corporation any real  property
owned  by  it  which  the  corporation  shall certify to be necessary or
convenient for its corporate purposes. Any such sale,  lease,  grant  or
conveyance  shall  be  made  with or without consideration and upon such
terms and conditions as may be agreed upon by such municipality and  the
corporation.  Certification  shall be evidenced by a formal request from
the president of the corporation. Before any such sale, lease, grant  or
conveyance  may  be  made  to the corporation, a public hearing shall be
held by the local governing body to consider the same.  Notice  of  such
hearing shall be published at least ten days before the date set for the
hearing  in  such publication and in such manner as may be designated by
the local governing body.
§  15.  Special  provisions  relating  to  residential  projects.  (1)
Notwithstanding  any  provision  of  law  to  the  contrary,  whenever a
residential project is owned by or leased to a  subsidiary  which  is  a
limited profit housing company, or is sold or leased to a limited profit
housing  company,  such  project  shall  be  deemed  to be a state-aided

project, as defined in section two of the private housing  finance  law,
unless  such  project  is  aided  by a municipal mortgage loan, in which
event such project shall be deemed to be a municipally-aided project.
(2)  Notwithstanding any provision of law to the contrary, but subject
to any agreement with noteholders or  bondholders,  any  city,  town  or
village  and  any  housing authority is hereby authorized to purchase or
lease for a term not exceeding ninety-nine years a residential project.
(3) Notwithstanding any other provision of this  act,  projects  of  a
subsidiary  organized  pursuant  to  articles two, four or eleven of the
private housing finance law shall be exempt from real property taxes  to
the extent and in the manner provided by applicable law.
(4)  In  order  to increase the availability of housing accommodations
for persons and families of low income, the corporation shall  undertake
to utilize the state capital grant low rent assistance program, pursuant
to   section  forty-four-a  of  the  private  housing  finance  law,  in
residential projects of the corporation.
(5) Notwithstanding any inconsistent provision of this act or  of  any
general  or special law, no plan for a proposed residential project in a
town or  incorporated  village  which  has  not  been  affirmed  by  the
corporation prior to May first, nineteen hundred seventy-three, shall be
affirmed  if,  within thirty days after the public hearing held pursuant
to subdivision two of section sixteen of this act or within thirty  days
after  June  first,  nineteen  hundred  seventy-three, whichever date is
later, the local governing body of  such  town  or  village  submits  in
writing to the corporation formal objections to the proposed residential
project,  unless  and until such objections are withdrawn and subject to
the following conditions and limitations:
(a) The foregoing shall not apply to  residential  projects  initiated
after   June  first,  nineteen  hundred  seventy-three,  if  such  local
governing body has, prior to submission, either approved  such  plan  or
executed  any  agreement with the corporation relating to such plan upon
which the corporation has relied in authorizing expenditures of funds or
contracts, unless such town or village reimburses  the  corporation  for
all  of its expenditures and indemnifies the corporation for liabilities
ensuing from cancellation of any contract, net of the  proceeds  of  any
resale of property acquired by the corporation for such project.
(b)  The  corporation  may affirm, in any event, plans for residential
projects in the new community known as Audubon, in the town of  Amherst,
county  of Erie or in the new community known as Lysander New Community,
in the town of Lysander, county of Onondaga, and the provisions of  this
first  paragraph  of  this subdivision shall not be applicable to any of
such projects.
§  16.  Cooperation  with  municipalities.  (1)  In  effectuating  the
purposes  of this act, the corporation and community advisory committees
created pursuant to section four of this act shall work closely, consult
and cooperate with local elected officials and community leaders at  the
earliest   practicable   time.   The   corporation  shall  give  primary
consideration  to  local  needs  and  desires  and  shall  foster  local
initiative  and  participation  in  connection  with  the  planning  and
development of  its  projects.  Wherever  possible,  activities  of  the
corporation  shall  be  coordinated  with  local urban renewal and other
community projects, and  the  corporation  shall  assist  localities  in
carrying  out  such projects. Consideration shall also be given to local
and regional goals and policies as expressed in urban renewal, community
renewal and local comprehensive land use plans and regional plans.
(2) Except with respect to a project consisting in whole or in part of
real property acquired by the corporation pursuant to  section  fourteen
of   this   act,   before   commencing  the  acquisition,  construction,

reconstruction,  rehabilitation,  alteration  or  improvement   of   any
project:  (a) upon adoption of the general project plan, the corporation
shall file a copy of such plan, including the findings required pursuant
to  section  ten of this act, in its corporate offices and in the office
of the clerk of any municipality in which the project is to be  located.
Upon  request, any other person shall be furnished with a digest of such
plan; (b) pursuant to authorization from the chief executive officer  of
the  corporation, which authorization may be given prior to the adoption
of such plan by the corporation, the corporation shall: (i)  publish  in
one  newspaper  of  general  circulation  within  the municipality, (ii)
provide to the chief executive officer of the municipality within  which
the project is located, and (iii) in any city having a population of one
million  or  more,  provide  to any community board in which the project
will be located, a notice that such plan will be filed upon its adoption
by the corporation and that digests thereof  will  be  available,  which
notice  shall  also state that a public hearing will be held to consider
the plan at a specified time and place on a date not less than ten  days
after  such  publication;  (c)  the  corporation  shall conduct a public
hearing pursuant to such notice, provided that such public hearing shall
not take place before the adoption or the filing of  such  plan  by  the
corporation;  (d)  upon a written finding of the chief executive officer
of the corporation that no substantive negative testimony or comment has
been received at such public hearing, such plan shall  be  effective  at
the   conclusion  of  such  hearing;  provided,  however,  that  if  any
substantive negative testimony or comment is  received  at  such  public
hearing,  the corporation may, after due consideration of such testimony
and comment, affirm, modify or withdraw the plan in the manner  provided
for   the  initial  filing  of  such  plan  in  paragraph  (a)  of  this
subdivision.
(3)  After  consultation  with  local  officials,   as   provided   in
subdivision  one  of  this  section,  the corporation and any subsidiary
thereof shall, in constructing, reconstructing, rehabilitating, altering
or improving any project, comply with the requirements  of  local  laws,
ordinances,   codes,   charters   or   regulations  applicable  to  such
construction, reconstruction, rehabilitation, alteration or improvement,
provided however, that when, in the discretion of the corporation,  such
compliance  is  not  feasible  or  practicable,  the corporation and any
subsidiary thereof shall comply  with  the  requirements  of  the  state
building  construction  code,  formulated  by  the  state  building code
council pursuant to article eighteen of the executive law, applicable to
such  construction,  reconstruction,   rehabilitation,   alteration   or
improvement.  In  those  circumstances  where,  in the discretion of the
corporation,  such  compliance  with  local  laws,  ordinances,   codes,
charters  or regulations is not feasible or practicable, and in the case
of any project where the corporation intends to  acquire  real  property
pursuant   to   section  thirteen  of  this  act,  the  requirements  of
subdivision two of  this  section  shall  be  complied  with;  provided,
however,  that  (a)  the corporation shall provide a copy of the plan to
the chief executive officer of any municipality within which the project
is to be located, the chairman of the planning board  or  commission  of
any  such  municipality, or if there is no planning board or commission,
to the presiding officer of the local governing body  and  in  any  city
having  a  population  of one million or more, to any community board in
which the project is located, and the public  hearing  to  consider  the
plan  required  pursuant  thereto  shall  be  held on thirty days notice
following adoption of the plan by the corporation; (b) any person  shall
have  the  opportunity  to  present  written comments on the plan within
thirty days after the public hearing; (c) any municipality within  which

the  project is to be located, by majority vote of its planning board or
commission, or in the event there is no planning board or commission, by
majority vote of its  local  governing  body,  may  recommend  approval,
disapproval  or  modification of the plan, which recommendation shall be
submitted in writing to the corporation within thirty  days  after  such
hearing;  and (d) after due consideration of such testimony and comments
and municipal recommendations,  if  any,  the  corporation  may  affirm,
modify  or  withdraw  the  plan  in  the manner provided for the initial
filing of such plan in paragraph (a) of subdivision two of this section,
provided,  however  that  in  the  event  any  such   municipality   has
recommended disapproval or modification of the plan, as provided herein,
the  corporation may affirm the plan only by a vote of two-thirds of the
directors thereof then in office. No municipality shall  have  power  to
modify   or  change  the  drawings,  plans  or  specifications  for  the
construction, reconstruction, rehabilitation, alteration or  improvement
of  any  project of the corporation or of any subsidiary thereof, or the
construction, plumbing, heating, lighting or other mechanical branch  of
work necessary to complete the work in question, nor to require that any
person,  firm or corporation employed on any such work shall perform any
such work in any other or different manner than that  provided  by  such
plans  and  specifications, nor to require that any such person, firm or
corporation obtain any other or additional authority,  approval,  permit
or  certificate  from  such  municipality  in relation to the work being
done, and the doing of any such work by any person, firm or  corporation
in  accordance with the terms of such drawings, plans, specifications or
contracts shall not subject said person,  firm  or  corporation  to  any
liability  or penalty, civil or criminal, other than as may be stated in
such contracts or incidental to  the  proper  enforcement  thereof;  nor
shall  any  municipality  have  power  to require the corporation or any
subsidiary  thereof,  or  lessee  therefrom  or  successor  in  interest
thereto,  to obtain any other or additional authority, approval, permit,
certificate or certificate of occupancy  from  such  municipality  as  a
condition  of  owning,  using,  maintaining,  operating or occupying any
project acquired, constructed, reconstructed, rehabilitated, altered  or
improved  by the corporation or by any subsidiary thereof. The foregoing
provisions shall not preclude any municipality from exercising the right
of inspection for the  purpose  of  requiring  compliance  by  any  such
project with local requirements for operation and maintenance, affecting
the  health,  safety  and  welfare  of  the occupants thereof, provided,
however, that such compliance does not require changes, modifications or
additions to the original construction of such project.
(4) Each municipality or  political  subdivision,  including  but  not
limited  to  a  county,  city,  town,  village or district, in which any
project of the corporation or of  any  subsidiary  thereof  is  located,
shall  provide  for such project, whether then owned by the corporation,
any subsidiary thereof or any successor  in  interest  thereto,  police,
fire,  sanitation, health protection and other municipal services of the
same character and to the  same  extent  as  those  provided  for  other
residents of such municipality or political subdivision.
(5)  Notwithstanding  the  provisions of any general, special or local
law or charter, any municipality or any  public  corporation  is  hereby
empowered  to  purchase  or  lease  for a term not exceeding ninety-nine
years a civic project, upon such terms and conditions as may  be  agreed
upon   by   such   municipality  or  such  public  corporation  and  the
corporation. No agreement for such purchase or lease shall be deemed  to
be  a  contract  for  public  work or purchase within the meaning of the
general municipal law. Nothing contained in this  subdivision  shall  be
deemed to amend or supersede any other provision of law requiring a vote

of  the  qualified  voters  of  any  school  district  upon  a  proposed
expenditure of  funds  or  incurring  of  indebtedness  by  such  school
district.
(6)  In carrying out any project, the corporation and its subsidiaries
shall  be  empowered  to  enter   into   contractual   agreements   with
municipalities and public corporations with respect to the furnishing of
any  community,  municipal or public facilities or services necessary or
desirable for such project, and any municipality or  public  corporation
is  hereby  authorized  and empowered, notwithstanding any other law, to
enter into such contractual agreements  with  the  corporation  and  its
subsidiaries and to do all things necessary to carry out its obligations
under the same.
§  16-a.  Regional  revolving  loan program. (1) The corporation shall
establish a fund to be known as the "regional revolving loan trust fund"
and  shall  pay  into  such  fund  any  monies  made  available  to  the
corporation  for  such  fund  from  any  source.  The  monies held in or
credited to the fund shall be expended solely for the purposes set forth
in this section. The corporation shall not commingle the monies of  such
fund  with  any  other  monies  of the corporation or any monies held in
trust by the corporation.
(2) The corporation shall allocate any monies made available for  such
fund  for  the  purpose  of  making grants to regional corporations. The
grants shall be allocated as follows:
(a) fifty percent divided equally among the regions;
(b) fifty percent according to a formula weighted in  favor  of  those
regions  with  the greatest levels of economic distress as determined by
poverty  rates,  number  of   persons   receiving   public   assistance,
unemployment rates, rate of employment decline and such other indicators
of economic distress as the corporation deems appropriate; and
(c)  in  the event a regional corporation advises the corporation that
it does not require all or a portion of  the  funds  to  be  distributed
pursuant  to this subdivision, such funds shall be re-distributed by the
corporation equally among the other regional corporations.
(3) In accordance with the rules and regulations of  the  corporation,
each  regional  corporation  shall  establish  two  special accounts for
monies received by the regional corporation pursuant to  the  provisions
of  this  section.  The  grant  monies  received  from  the corporation,
earnings on such monies, and any principal repayments shall be deposited
in a loan fund account; any interest earned by the regional  corporation
on  loans  will be deposited in a separate interest repayment account. A
regional corporation shall be authorized to provide financing assistance
to eligible projects. Any interest earned from its loans may be used  by
a  regional  corporation  for  the  cost  of  administering the programs
authorized by this section.
(3-a)  Notwithstanding  subdivision  three  of  this  section,   where
applicable,  the  corporation  is authorized to enter into agreements as
may be necessary for the administration and reporting of  funds  repaid,
received,  expended  or  collected  in  a  manner  consistent  with  the
provisions in section sixteen-t of this act. The use of  such  funds  by
the  corporation  shall  be  consistent  with  the terms, conditions and
restrictions set forth in subdivision four of this section,  to  provide
financial  assistance  to  eligible  regional corporations as defined in
subdivision eighteen of section three of this act. Outstanding expenses,
loans and other obligations executed prior to the effective date of this
subdivision shall be subject to the terms and conditions of the original
contract or contracts.
(4) Regional corporations shall be selected by  the  corporation  from
among  eligible  applicants  to  administer  a  regional  revolving loan
program. An eligible applicant shall:
(a) represent at least two entire contiguous counties;
(b)  have  available  to it staff with sufficient expertise to analyze
applications for financial assistance, to  regularly  monitor  financial
assistance  to clients, and have made arrangements to provide management
or technical assistance to clients;
(c) have an effective plan to market its services to small  businesses
through   such   entities   as  chambers  of  commerce,  industry  trade
associations, banks, local  development  corporations,  community  based
organizations and industrial development agencies; and
(d) have established a loan committee composed of five or more persons
experienced  in  commercial  lending or in the operation of a for-profit
business and a staff person of the regional office of the department  of
economic development. Such loan committee shall review every application
to  the  regional  corporation for financial assistance pursuant to this
section, shall determine the feasibility of the transaction proposed  in
the  application  and shall recommend to the board of directors or other
governing body of the regional corporation such action as the  committee
deems appropriate.
(5)   Applications   to   the   corporation   for   certification   or
recertification as a regional corporation shall:
(a) describe the applicant corporation,  including  its  organization,
membership, loan committee, staff, and sources of other funds, if any;
(b) identify the geographic region to be served;
(c)  explain  the methods and criteria to be used in determining firms
eligible for financial  assistance  from  the  regional  revolving  loan
program;
(d) describe the means for coordinating financial assistance available
from  the  regional  revolving  loan  program  with financial assistance
available from other public funding sources within the  region  and  how
such program will be used to leverage private financing for projects;
(e) at any time, the corporation may consider proposals to reconfigure
geographic areas served by regional corporations; and
(f)   contain   such   other  information  as  the  corporation  deems
appropriate.
(6) The corporation shall  select,  from  among  eligible  applicants,
regional  corporations  to  administer  revolving  loan programs, on the
basis of:
(a)  the  ability  of  the  regional  corporation  to  administer  the
financial assistance programs authorized under this section;
(b) the extent of coordination with other publicly supported financial
assistance  programs  available  within  the  region  represented by the
regional corporation;
(c) the degree of public and private support within the region for the
applicant regional corporation; and
(d) the ability of the regional corporation to provide  financial  and
other  assistance  to  businesses located in distressed areas within the
region.
(6-a) The corporation shall, every five  years,  recertify  that  each
regional  corporation has complied with the terms and conditions of this
section. In the event a regional corporation is not recertified, or  its
certification  is  withdrawn  pursuant  to  subdivision nineteen of this
section, then the corporation shall give written notice to such regional
corporation which shall thereafter neither make new loans nor  undertake
new  obligations  except  upon  written approval of the corporation. The
corporation may thereafter certify another regional corporation  in  the

manner   provided   in  this  section  for  the  selection  of  regional
corporations.  Upon  the   certification   of   a   successor   regional
corporation,  all  remaining  loan  funds,  records  and accounts of the
regional  corporation  not  recertified  shall  be  transferred  to  the
corporation and the regional corporation not recertified shall cease  to
function  pursuant  to  this  section.  The  corporation  shall transfer
returned funds to a successor regional corporation, or in the  event  no
successor  regional  corporation  is  formed,  equally to other existing
regional corporations.
(7) A regional corporation certified by the corporation shall use  the
funds  received  from  the corporation, subject to the terms, conditions
and restrictions  set  forth  in  this  section,  to  provide  financial
assistance to eligible businesses as defined in subdivision seventeen of
section  three  of this act, for projects that demonstrate a substantial
likelihood of providing increases in net new permanent jobs or retaining
jobs in businesses that need such financial assistance to remain viable.
(8) The decision to approve or reject  an  application  for  financial
assistance pursuant to the provisions of this section shall be made by a
majority of the directors of the regional corporation, and such decision
shall  be  final.  No  member  of the board or other governing body of a
regional corporation shall  participate  in  a  decision  on  a  project
application  when  such member is a party to or has a financial interest
in such project. Any member who cannot participate in a  decision  on  a
project  application for such reason shall not be counted as a member of
the board or other governing body for purposes of determining the number
of members required for a majority vote on such application.
(9) No employee or officer of any  regional  corporation  shall  be  a
party  to  or  have  any financial interest in any project that receives
financial assistance pursuant to this section.
(10) A regional corporation, in approving applications  for  financial
assistance, shall give priority to projects:
(a) that will provide increases in net new permanent jobs;
(b)  located  in  economically  distressed  areas  as  defined  by the
corporation or employing persons who live in such areas;
(c) of minority or women-owned enterprises  or  enterprises  owned  by
dislocated  workers, such workers as defined in the Workforce Investment
Act (P.L. 105-220); and
(d) of businesses in the early stages of development  that  have  been
denied access to credit.
(11) The funds allocated to each regional corporation pursuant to this
section may be used to guarantee the repayment of a working capital loan
provided  by  a  banking  organization  to  finance an eligible project.
Guarantees may be provided for up to  ninety  percent  of  the  required
total project financing, provided that no more than one hundred thousand
dollars  may  be  guaranteed for any project. Guarantees may be made for
the following types of  financing:  short  and  medium  term  loans  for
working  capital,  revolving lines of credit, and seasonal inventory and
accounts receivable loans. Guarantees may  be  made  for  up  to  ninety
percent  of  the required total financing up to a maximum of one hundred
fifty thousand dollars for interim financing  where  another  lender  or
guarantor  will  provide  permanent  financing within one hundred eighty
days. In no event may a loan guarantee be for a term  longer  than  five
years.  Any  loan  made  by  a  banking  organization that is guaranteed
pursuant to this subdivision shall be secured by a  security  agreement,
chattel  paper,  loan  agreement, or such other instruments or documents
deemed necessary or convenient by the regional corporation to secure the
loan. Any guarantee made pursuant to this subdivision shall be backed by
a minimum reserve  within  the  account  established  by  each  regional

corporation  of  at  least  twenty-five percent of the amount guaranteed
that is outstanding.
(11-a)  A  regional  corporation,  in  addition  to receiving funds as
provided in this section, may also apply for and accept funds  from  any
other  source  for  the  purpose of furthering its goals and objectives.
Such funds may be used in the same manner as  funds  received  from  the
corporation to carry out the purposes of this section.
(12)  The  funds of each regional corporation derived pursuant to this
section may be used to provide loans for working  capital  for  eligible
projects;  provided  that  the amount of the loan does not exceed ninety
percent of the total project cost,  or  one  hundred  thousand  dollars,
whichever  is  less. The interest rate and the terms on such loans shall
be determined by the regional corporation, but in  no  event  shall  the
interest  rate be less than five percent. The term of any loan shall not
exceed five years. All loans shall  be  secured  by  lien  positions  on
collateral  at  the  highest  level of priority that can accommodate the
borrower's ability to raise sufficient debt and equity capital  for  the
project.
(13) A regional corporation shall not provide any financial assistance
authorized by this section unless the following conditions are met:
(a)  the  applicant  has demonstrated that there is little prospect of
obtaining the project financing requested from other public  sources  of
funding  within  the  region,  including local revolving loan funds, and
that there is little prospect of obtaining  adequate  project  financing
from  private  sources  of  capital, or in the case of a loan guarantee,
that there is little prospect of obtaining project financing without the
guarantee; except that in  the  case  of  local  revolving  loan  funds,
financial  assistance  from the regional revolving loan fund account may
be provided for a project in conjunction with financial assistance  from
a  local revolving loan fund, provided that assistance from the regional
revolving loan fund is no  greater  than  that  provided  by  the  local
revolving  loan  fund,  and  that  a  project  qualifying  for financial
assistance available from a local revolving loan fund is not denied such
assistance;
(b) the applicant has a  minimum  equity  interest  of  at  least  ten
percent in the business or project;
(c) there is a reasonable prospect of repayment;
(d)  the  project is located in the region represented by the regional
corporation;
(e) the project will comply with any applicable environmental rules or
regulations;
(f) the applicant has certified that it will not discriminate  against
any  employee or any applicant for employment because of race, religion,
color, national origin, sex, or age;
(g) a staff member or a representative  of  the  regional  corporation
acting  in  an official capacity has personally visited the project site
and/or the applicant's place of business; and
(h) financial commitments for the  project  have  been  obtained  from
other public and private sources.
(14) Grants made by the corporation pursuant to this section shall not
be made available for:
(a)  projects  that  would  result  in  the relocation of any business
operation from one municipality within  the  state  to  another,  except
under one of the following conditions: (i) when a business is relocating
within  a  municipality  with a population of at least one million where
the governing body of such municipality  approves  such  relocation;  or
(ii) the regional corporation notifies each municipality from which such

business  operation  will  be  relocated and each municipality agrees to
such relocation;
(b)  projects of newspapers, broadcasting or other news media; medical
facilities,  libraries,  community   or   civic   centers;   or   public
infrastructure improvements;
(c)  refinancing  any  portion  of  the  total  project  cost or other
existing loans or debts of an  applicant,  except  for  the  purpose  of
transferring to the employees or to other local interests ownership of a
company  that  would  otherwise  depart  from  or cease or substantially
reduce operations in the state;
(d)  providing   funds,   directly   or   indirectly,   for   payment,
distribution,  or  as a loan, to owners, partners or shareholders of the
applicant enterprise, except as ordinary income for  services  rendered;
and
(e) retail projects, except where the regional corporation finds there
will be an increase in net new permanent jobs.
(15)  A  regional  corporation  may charge application, commitment and
loan guarantee fees pursuant to  a  schedule  of  fees  adopted  by  the
regional corporation and approved by the corporation.
(16)  The  regional  corporations  shall submit annual reports for the
previous  fiscal  year  to  the  corporation  describing  the  financial
assistance  provided  pursuant to this section, including: the number of
projects assisted;  the  amount  and  type  of  assistance  provided;  a
description of the projects; the number of jobs created or retained; the
status  of outstanding loans, guarantees, earnings and account balances;
and such other information as the corporation may require.
(17) The corporation shall, assisted by the commissioner  of  economic
development   and  in  consultation  with  the  department  of  economic
development, promulgate rules and regulations  in  accordance  with  the
state  administrative  procedure  act  setting  forth  procedures  to be
followed by, and  the  responsibilities  and  obligations  of,  regional
corporations  and  the  corporation. Such rules and regulations shall be
consistent with the program plan required  by  subdivision  nineteen  of
section one hundred of the economic development law.
(18)  For  any  positions opened as a result of assistance provided in
this section, businesses so assisted shall first consider unemployed  or
low  income  individuals  eligible  to  participate  in  programs funded
through the  Workforce  Investment  Act  (P.L.  105-220)  who  shall  be
referred  to  the  business by local workforce investment boards created
pursuant to such act or by the job service division of the department of
labor.
(19) The corporation shall annually conduct an audit of each  regional
corporation   to   ensure   conformity   of   all   aspects  of  program
administration  and  of  financial  assistance  transactions  with   the
substantive and procedural provisions of this section. In the event that
the  corporation  finds  instances  of  substantive  noncompliance  by a
regional corporation with any of the provisions of this section and such
instances were, or should have been, known to be in  noncompliance,  the
regional  corporation  shall  return, within thirty days, upon demand by
the corporation, all uncommitted grant funds  on  hand  and  provide  an
accounting of the loans currently outstanding.
The corporation may withdraw a regional corporation's certification:
(a)  when a member of a board of directors or other governing body, an
officer or an employee of said regional corporation is party to  or  has
financial interests in loan projects;
(b)   when   said  regional  corporation  fails  to  comply  with  the
requirements for project loans pursuant to this section; or
(c) when a regional corporation makes no  loans  within  the  previous
fiscal  year  and  there  is  more  than  one  hundred  thousand dollars
remaining in its loan fund account.
The  corporation  shall  transfer  funds  returned  from a decertified
regional corporation to a successor regional corporation, or,  if  there
be  none,  distribute  such  funds equally among other existing regional
corporations. Outstanding loans and other obligations payable to such  a
decertified  regional  corporation  shall  be  assigned to its successor
regional corporation, or to the corporation or an  agent  designated  by
the  corporation upon such terms and conditions as the corporation shall
determine.
(20) Reporting. (a) The  lending  organization  shall  submit  to  the
corporation  annual  reports  stating: the number of program loans made;
the amount of program funding used for loans; the use of  loan  proceeds
by  the  borrower; the number of jobs created or retained; the status of
each outstanding program loan, including fund balance;  and  such  other
information as the corporation may require.
(b)  The  corporation  shall,  on  or before October 1, 1988 and on or
before each October first thereafter, submit a report  to  the  governor
and  the  legislature  on  the  operations  and  accomplishments  of the
regional revolving loan program. Such report shall include a summary  of
the   information   contained  in  the  reports  submitted  pursuant  to
subdivision sixteen of this section and of the  results  of  the  audits
performed  by  the  corporation pursuant to subdivision nineteen of this
section, and shall set forth the status of the regional  revolving  loan
program  for  the previous fiscal year, including grants to the regional
corporations,  earnings  and  account  balances  as  reported   to   the
corporation.  The  report  to  be submitted on October 1, 2005 and on or
before each October first thereafter  shall  be  consolidated  with  the
annual  program  report of the corporation required under the provisions
of subdivision (b) of section thirty of this act, as amended.
(c) Beginning April 1, 2019, the  corporation  shall  publish  on  its
website  the  information contained in the annual reports required under
paragraphs (a) and (b) of this subdivision in  aggregate  form  omitting
borrower identifiable information.
(21)  Evaluation.  (a) The corporation shall submit to the director of
the division of the  budget,  the  chairperson  of  the  senate  finance
committee,  and the chairperson of the assembly ways and means committee
an evaluation of this program prepared by an entity independent  of  the
corporation. Such evaluation shall be submitted by September 1, 2005 and
by September first every four years thereafter.
(b)  Between  evaluation due dates, the corporation shall maintain the
necessary  records  and  data  required  to  satisfy   such   evaluation
requirements  and  to  satisfy  information  requests  received from the
director of the budget, the chairperson of the senate finance  committee
and  the  chairperson  of  the assembly ways and means committee between
such evaluation due dates.
(22) The corporation shall recertify  existing  regional  corporations
or,  in  the  event  a  regional  corporation's  certification  has been
withdrawn, seek successor corporations among eligible  applicants  after
April first, two thousand two.
§  16-b.  Job  retention  and  defense  industry  working capital loan
program.  (1) Program established. The corporation shall  establish  the
job  retention and defense industry working capital loan program for the
purpose  of  establishing  an  economic  development   working   capital
revolving  loan  fund  to  be administered by the corporation. Such fund
shall be used to provide financial assistance in  the  form  of  working
capital  loans  or  loan  guarantees  to  companies  at imminent risk of

reducing employment including, but not  limited  to,  companies  in  the
defense  sector  or in the form of grants for the benefit of communities
whose employment is or could be impacted by a planned or potential major
military   base   closing  and/or  downsizing  or  for  the  benefit  of
communities  whose  employment  is  impacted  by  the  downsizing  of  a
community's  major  employer or employers including, but not limited to,
communities impacted by cutbacks in defense contracts.
(2) Application criteria. In addition to such other  criteria  as  the
corporation  may adopt in rules and regulations for the consideration of
applications for loans or loan guarantees pursuant to subdivision one of
this section, the corporation shall:
(a) determine that the company is unable to obtain sufficient  funding
on  reasonable  terms from other public or private sources to permit the
company's planned investment to proceed without the required assistance;
(b) give priority to those applications for assistance from  companies
located  in  highly  distressed areas as defined pursuant to subdivision
(a) of section nine hundred fifty-eight of  article  eighteen-b  of  the
general municipal law;
(c)  consider  whether  the  loan  or  loan guarantee will result in a
reasonable likelihood of success in meeting the purposes  for  which  it
was sought by the applicant company;
(d) assess the demonstrated need for such assistance, established by a
showing  of  a  short-term  lack  of  liquidity  of  an existing solvent
business;
(e) request from a company a commitment to a  business  plan  to  turn
around the financial condition of the business;
(f)  expect  the  existence  of  a  completed  company  evaluation, or
commitment  to  undertake  such  an  evaluation,   by   the   industrial
effectiveness program, or its equivalent thereof; and
(g) require companies receiving assistance pursuant to this section to
first  consider  for  any new position opened as a result of assistance,
persons eligible to participate in federal job training partnership  act
programs  (P.L. 97-3400) (29 U.S.C.A. SS 801 seq.) who shall be referred
to the company by administrative  entities  of  service  delivery  areas
created  pursuant  to  such  act  by  the  job  service  division of the
department of labor.
(3)  Funds.  The  fund  shall  consist  of  such  amounts  as  may  be
appropriated,  any  repayment  of  the principal amount of any loan made
from the fund, and any interest  earned  by  the  corporation  from  the
investment of moneys of the fund.
(4)  Nonapplication  of  certain provisions. The provisions of section
ten and subdivision two of section sixteen of this act shall  not  apply
to assistance provided under this program.
(5)  Reports.  The  chairman  of  the  corporation shall submit to the
director of the budget, the speaker of the assembly  and  the  temporary
president  of  the  senate  an  evaluation  of  the effectiveness of the
program prepared by  an  entity  independent  of  the  corporation.  The
corporation  shall  select  the  program evaluator through a request for
proposal process. Such evaluation shall determine whether the assistance
provided has enhanced the economic conditions of assisted  companies  or
communities, and shall make recommendations for improvements which would
make  the  program more effective. Such evaluation shall be submitted by
September first, nineteen hundred ninety-five and September first  every
two years thereafter.
§  16-c.  Minority-  and  women-owned business development and lending
program.
(1)  Minority-  and  women-owned  business  development  and   lending
program.
(a)  There  is  hereby  created  a minority- and women-owned

business development and lending program for the  purpose  of  providing
financial and technical assistance to minority and women-entrepreneurs.
(b)  For  the  purposes  of  this section the following words or terms
shall mean as follows:
(i) "minority-owned business enterprise" or "minority-owned  business"
shall  mean  the  same  as  "minority business enterprise" as defined in
subdivision three of section two hundred ten of the economic development
law.
(ii) "women-owned business enterprise" or "women-owned business" shall
mean the  same  as  "women-owned  business  enterprise"  as  defined  in
subdivision  five of section two hundred ten of the economic development
law.
(iii) "incubator" shall mean  a  facility  providing  low-cost  space,
technical  assistance  and  support services, including, but not limited
to, central services shared by tenants of the facility, to minority- and
women-owned business enterprises.
(c) Assistance shall not be provided under this section for:
(i) the purchase or rehabilitation of real  property  for  speculative
purposes;
(ii) payment of any tax or employee benefit arrearage;
(iii)    residential    construction,    renovation   or   development
construction, except for assistance to minority  and  women  contractors
under subdivision four of this section;
(iv)  educational institutions and proprietary education firms, except
licensed child care facilities;
(v) hospitals or residential health care facilities;
(vi) overnight lodging facilities;
(vii) refinancing of commercial or business  related  debt  or  equity
invested in a commercial or business related enterprise or commercial or
business  related project, unless the corporation finds the terms of the
original debt to be unreasonable as provided  in  subparagraph  (ix)  of
paragraph (d) of this subdivision.
(d) The corporation is authorized to:
(i)  establish  programs  in  conjunction  with locally, and community
based entities to decentralize lending for  small  loans  and  loans  to
start up minority- and women-owned businesses;
(ii)   establish  a  comprehensive  program  for  minority  and  women
contractors,  which  may  include  assistance  through  loans,   bonding
assistance and technical assistance;
(iii)  establish  a  program to provide loans to established minority-
and women-owned businesses and for minority- and women-owned businesses,
including loans to such  businesses  seeking  to  acquire  or  expand  a
franchise;
(iv) provide loan guarantees to financial institutions and make linked
deposits  into  federally  and  state  chartered  credit  unions for the
purpose of encouraging private financial institutions to make  loans  to
minority- and women-owned businesses;
(v)  establish a program to create incubators to assist small and high
risk minority- and women-owned businesses to grow and prosper;
(vi)  promote  equity  investment   in   minority-   and   women-owned
businesses;
(vii)  establish  a  comprehensive  technical  assistance  program  in
cooperation with  the  department  of  economic  development  to  assist
minority-   and   women-owned  businesses  and  potential  minority  and
women-entrepreneurs;
(viii) notwithstanding any provision of law to the contrary, establish
a minority- and women-owned business investment fund to provide critical
financial support to foster the development of new  and  emerging  ideas

and  products  of minority- and women-owned business enterprises as well
as to promote the long-term financial performance and success  of  early
stage  enterprises  that  are  minority-  and women-owned start-ups. The
selection  of  an  eligible  applicant and beneficiary companies for the
minority- and women-owned business investment fund shall be selected  by
the  process  established  pursuant  to subdivisions two through four of
section  sixteen-u  of  this  act.  Minority-  or  women-owned  business
enterprises  who  participate in such minority- and women-owned business
investment fund under this  subdivision  shall  not  be  precluded  from
qualifying  for  any other assistance, grant or loan made available from
the state; and
(ix) provide for the refinancing of  commercial  or  business  related
debt  or  equity invested in an enterprise or project, provided that the
corporation  determines  the  terms  of  the   original   debt   to   be
unreasonable.  The  applicant must submit a written justification to the
corporation for each loan explaining why the  current  loan  is  not  on
reasonable  terms.  Unreasonable  terms  of debt may include but are not
limited to:
(1) a demand or balloon maturity feature in the existing note;
(2) the current maturity is not appropriate for the  original  purpose
of the loan;
(3)  the  existing  debt  being refinanced is on a revolving line or a
credit card;
(4) the interest rate is deemed unreasonable by the corporation; or
(5) the loan is over-collateralized.
(2) Minority and women revolving loan trust fund. For the  purpose  of
establishing  programs  in  conjunction with locally and community based
entities to decentralize lending for small loans and loans to  start  up
minority-  and  women-owned  businesses, the corporation shall establish
minority and women  revolving  loan  trust  fund  accounts  and  related
administrative expenses trust fund accounts.
(a) Each minority and women revolving loan trust fund account shall be
administered  by  one  or  more  of the following types of entities that
provide services to community  businesses  and  have  as  one  of  their
primary  purposes  the provision of services and assistance to minority-
and women-owned businesses:
(i) empire zone capital corporations established pursuant  to  section
nine hundred sixty-four of the general municipal law;
(ii)  community-based  local  development  corporations  or industrial
development agencies that serve a municipality in which an  empire  zone
has  been  established  pursuant  to  article  eighteen-B of the general
municipal law and have as their primary purpose assistance to  minority-
and women-owned businesses located or to be located in such empire zone;
or
(iii)   local   and  community  development  corporations,  industrial
development agencies, or other not-for-profit  entities,  representative
of the community.
(b)  To  be eligible to administer a minority and women revolving loan
trust fund account, the entity must also: (i) have staff with sufficient
expertise to analyze applications for financial assistance, to regularly
monitor financial assistance to clients, and to  provide  management  or
technical  assistance  to  clients;  and  (ii)  have  established a loan
committee composed of  six  or  more  persons  experienced  in  business
management,  commercial  lending  or  in  the  operation of a for-profit
business, at least one-half of whom shall be experienced  in  commercial
lending,  at  least  one-third  of whom shall be minority persons and at
least one-third of whom shall be women. Such loan committee shall review
every application, determine the feasibility of the proposed project and

the likelihood  of  repayment  of  the  requested  financing  and  shall
recommend  to  the  governing  body  of  the  entity  such action on the
application as the loan committee  deems  appropriate.  The  corporation
shall  identify  entities  eligible  to  administer  minority  and women
revolving loan trust  fund  accounts  through  a  competitive  statewide
request for proposal process.
(c)  Any  entity selected to administer a minority and women revolving
loan trust fund account shall be eligible to draw funds from the account
as needed to provide the following  types  of  financial  assistance  to
minority-   and   women-owned   businesses  upon  certification  to  and
acceptance by the corporation that such assistance complies  with  rules
and  regulations  promulgated  by  the  corporation: (i) working capital
loans, provided that the amount of the loan does not exceed  thirty-five
thousand  dollars  and  the term of the loan does not exceed five years;
and (ii) loans for the acquisition and/or improvement of  real  property
and  for  the  acquisition  of machinery and equipment provided that the
amount of the loan does not exceed fifty thousand dollars and  the  term
of  the  loan  does  not  exceed  the  useful  life  of the equipment or
property.
(d) (i) Notwithstanding any provision of  law  to  the  contrary,  the
corporation  may establish an administrative expenses trust fund account
for the benefit of each entity selected to  administer  a  minority  and
women revolving loan trust fund account. The initial deposit of funds to
an  administrative  expenses  trust  fund  account  shall  be  an amount
determined by the corporation but shall not exceed twenty-five  thousand
dollars.
(ii)  An  entity selected to administer a minority and women revolving
loan trust fund account may use the funds in the administrative expenses
trust fund account for  costs  incurred  by  it  in  the  start  up  and
administration  of  the financial assistance program authorized pursuant
to this subdivision.
(iii) The corporation shall deposit into each administrative  expenses
trust fund account:
(A)  all income earned from the moneys on deposit in the corresponding
minority and women revolving loan trust fund account  during  the  first
year of the entity's administration of said account; and
(B)  beginning  with  its  second year in administering a minority and
women revolving loan trust fund account, said amounts may  be  used  for
costs  incurred  by  the  entity in administering the minority and women
revolving loan trust fund account; and
(C) repayments of  interest  on  loans  made  from  the  corresponding
minority and women revolving loan trust fund account.
(iv)  Funds from the administrative expenses trust fund account may be
used for costs incurred at any time by an administering  entity  in  its
administration of a minority and women revolving loan trust fund account
pursuant to this section.
(v)  Funds  deposited in an administrative expenses trust fund account
shall be disbursed by the corporation to the entity that administers the
corresponding minority and women revolving loan trust fund account on  a
periodic basis and shall be expended by the entity in accordance with an
annual budget and any updates of same, approved by the corporation.
(e)  Any  entity selected to administer a minority and women revolving
loan trust fund account shall pay to the  corporation  for  deposit  any
repayments  received  in  connection  with financial assistance provided
from its account. Payments consisting of the repayment of the  principal
amount of a loan shall be deposited by the corporation into the minority
and  women  revolving  loan  trust  fund account from which the loan was
made. The interest earned by the  corporation  from  the  investment  of

moneys  in  each  minority  and  women revolving loan trust fund account
during and after the second year of a selected  entity's  administration
of  said  account  shall  be  deposited  by  the  corporation  into  the
corresponding  minority  and women revolving loan trust fund account and
used to provide the financial assistance to  minority-  and  women-owned
businesses as authorized pursuant to this section.
(f)  The  provisions of subdivisions eight, nine, and fourteen through
nineteen of section sixteen-a of this act  pertaining  to  the  regional
revolving  loan  trust fund shall also be applicable to the minority and
women revolving loan trust fund, provided that: where the term "regional
corporation" appears therein it shall be interpreted to mean  an  entity
selected  to  administer  a minority and women revolving loan trust fund
account, and "regional revolving loans trust fund" shall mean a minority
and women revolving loan trust fund, and where the term  "this  section"
appears therein it shall mean this section sixteen-c.
(g)  The  corporation  may provide funds from an appropriation for the
minority- and women-owned business development and  lending  program  to
any  entity  selected  to administer a minority and women revolving loan
trust fund for the purposes  of  recapitalizing  such  account  and  the
entity's   corresponding  administrative  expenses  trust  fund  account
following  an  evaluation   by   the   corporation   of   the   entity's
administration and use of such accounts.
(h)  Notwithstanding  any  provision  of  law  to  the  contrary,  the
corporation shall establish a minority and women  revolving  loan  trust
fund  to pay into such fund any moneys made available to the corporation
for such fund from any source,  including  moneys  appropriated  by  the
state  and any income earned by, or increment to, the account due to the
investment thereof, or any repayment of moneys advanced from  the  fund.
The  corporation  shall  not  commingle the moneys of such fund with any
moneys held in trust by the corporation, except for investment purposes.
(i) Notwithstanding any other provisions of  this  subdivision,  where
applicable,  the  corporation  is authorized to enter into agreements as
may be necessary for the administration and reporting of  funds  repaid,
received,  expended  or  collected  in  a  manner  consistent  with  the
provisions in section sixteen-t of this act. The use of  such  funds  by
the  corporation  shall  be  consistent  with  the terms, conditions and
restrictions set forth under  this  subdivision,  to  provide  financial
assistance  to  eligible businesses as defined in subdivisions three and
five of section  two  hundred  ten  of  the  economic  development  law.
Outstanding  expenses, loans and other obligations executed prior to the
effective date of this paragraph shall  be  subject  to  the  terms  and
conditions of the original contract or contracts.
(i)  The  lending  organization shall submit to the corporation annual
reports stating: the number of program loans made; the amount of program
funding used for loans; the use of loan proceeds by  the  borrower;  the
number  of  jobs  created  or  retained;  the status of each outstanding
program loan, including fund balance; and such other information as  the
corporation may require.
(ii)  Beginning  April  1,  2019, the corporation shall publish on its
website the information contained in the annual reports  required  under
subparagraph  (i)  of this paragraph in aggregate form omitting borrower
identifiable information.
(3) Micro-loan program. (a)  For  the  purposes  of  this  subdivision
"micro-loan"  shall  mean  a  loan  of under seven thousand five hundred
dollars.
(b) The corporation shall, pursuant to requests for  proposals,  enter
into  agreements  for  other  types  of locally, community or regionally
administered loan programs than those set forth in  subdivision  two  of

this  section, including micro-loan programs to be administered by local
development corporations, local  industrial  development  organizations,
municipalities  and not-for-profit organizations, to provide micro-loans
to  small  and  high  risk  minority- and women-owned businesses located
within  their  respective  service  areas,  provided  that  loan  review
committees are established by such administering entity, including women
and  minority  persons  experienced  in  business  management,  business
development, commercial lending, entrepreneurship, or in  the  operation
of a for-profit business.
(c)  Agreements  entered  into  pursuant  to  paragraph  (b)  of  this
subdivision  shall  be  governed  by  paragraphs  (d)  through  (h)   of
subdivision  two  of this section, and minority and women revolving loan
trust fund accounts and  administrative  expenses  trust  fund  accounts
shall  be  established  in  a  similar  fashion for entities selected to
administer micro-loan funds pursuant to this subdivision.
(d) Notwithstanding any other provisions of  this  subdivision,  where
applicable,  the  corporation  is authorized to enter into agreements as
may be necessary for the administration and reporting of  funds  repaid,
received,  expended  or  collected  in  a  manner  consistent  with  the
provisions in section sixteen-t of this act. The use of  such  funds  by
the  corporation  shall  be  consistent  with  the terms, conditions and
restrictions set forth under  this  subdivision,  to  provide  financial
assistance  to  eligible businesses as defined in subdivisions three and
five of section  two  hundred  ten  of  the  economic  development  law.
Outstanding  expenses, loans and other obligations executed prior to the
effective date of this paragraph shall  be  subject  to  the  terms  and
conditions of the original contract or contracts.
(e)(i) The lending organization shall submit to the corporation annual
reports stating: the number of program loans made; the amount of program
funding  used  for  loans; the use of loan proceeds by the borrower; the
number of jobs created or  retained;  the  status  of  each  outstanding
program  loan, including fund balance; and such other information as the
corporation may require.
(ii) Beginning April 1, 2019, the corporation  shall  publish  on  its
website  the  information contained in the annual reports required under
subparagraph (i) of this paragraph in aggregate form  omitting  borrower
identifiable information.
(4)  Minority  and  women  contracting  program.  For  the  purpose of
establishing a  comprehensive  program  to  assist  minority  and  women
contractors,   the  corporation  may  provide  loans,  loan  guarantees,
technical assistance and bonding assistance, the corporation  may  enter
into  cooperative  agreements  with  cities,  counties,  municipalities,
authorities, agencies, federally and state chartered  credit  unions  in
New York state and federally insured banking organizations and financial
institutions for such purposes.
(a)  To  be  eligible  for  a  contractor loan, the borrower must have
either (i) a construction contract with, or a contract to provide  goods
or  services  to, a governmental entity or authority, (ii) a subcontract
on a government-sponsored construction contract,  (iii)  a  contract  or
subcontract  on  a  government  sponsored residential project, or (iv) a
contract or subcontract on a construction project previously approved by
the corporation pursuant to section ten of this act.
(b) The corporation shall provide  technical  assistance  specifically
oriented  to  minority and women-owned government contractors as part of
its comprehensive technical assistance program.
(c) The corporation is authorized to provide  assistance  through  the
creation  of,  or  assistance to, a minority and women bonding guarantee

program to enable minority and women contractors and  subcontractors  to
meet payment or performance bonding requirements.
(i)  Through  such  program, assistance in the form of working capital
loans and loan guarantees pursuant to subdivision six  of  this  section
may   also   be   provided   to   minority  and  women  contractors  and
subcontractors who  have  secured  contracts  by  participating  in  the
program.
(ii)  The  corporation shall either establish criteria for the bonding
guarantee program and for any required escrow funds which shall  include
detailed  provisions for eligibility; or if the corporation is providing
assistance to a program other than one established by  the  corporation,
review and approve the criteria established for such other program.
(5)   Direct   financial  assistance  for  minority-  and  women-owned
businesses. For the purpose of establishing a program to provide  direct
financial  assistance  to  minority-  and  women-owned  businesses,  the
corporation is authorized to provide assistance in the form of:
(a)  Business  development  loans  and  loan  guarantees  pursuant  to
subdivision  six  of  this  section  to  eligible  enterprises  for  the
acquisition or improvement of real  property,  machinery,  equipment  or
working capital, provided that to be eligible for a business development
loan,  the borrowers must have been in business for at least three years
and provided that the loans must be in an amount equal to or  in  excess
of fifty thousand dollars;
(b)  Franchise  loans  to  eligible  enterprises seeking to acquire or
expand franchises of nationally recognized corporations,  provided  that
disbursements  by  the corporation of such loans shall be conditioned on
obtaining such franchises;
(c)  Equity  assistance  for   eligible   minority   and   women-owned
enterprises  to  match  equity  contributions  to  such  enterprises  by
financial institutions and community development equity  capital  funds,
provided,  however,  that  such assistance shall be targeted to start-up
and early stage enterprises in the  manufacturing,  retail  and  service
sectors located in economically distressed areas.
(6)  Deposits  and  loan  guarantees.  For  the purpose of encouraging
private financial institutions to make  loans  to  eligible  enterprises
pursuant  to  this  section for any of the eligible projects pursuant to
subdivisions  four  and  five  of  this  section,  the  corporation   is
authorized to:
(a)  Make  linked deposits of funds into federally and state chartered
credit  unions  in  New  York  state,  in  order   to   encourage   such
organizations   to   make   small  loans  to  minority  and  women-owned
businesses; and
(b) Provide loan guarantees  to  private  financial  institutions  for
loans  made to eligible minority- and women-owned businesses pursuant to
this subdivision for eligible  projects,  provided  that  the  guarantee
shall  be at least fifty percent backed by funds of the corporation. Any
such loan guaranteed by the corporation shall be made to borrowers  that
are  approved by the corporation and substantially meet the underwriting
criteria the credit union or financial institution  customarily  applies
to  similar borrowers for similar loans supported by similar guarantees,
and no guaranteed loan funds shall be disbursed  until  the  corporation
has   received,   reviewed   and   concurred,   in   writing,  with  the
recommendation of the credit union or banking or  financial  institution
to make a loan.
(7)  Minority  and  women  small  business  incubator program. (a) The
corporation  shall  establish  a  minority  and  women  small   business
incubator program for the purpose of providing financial support for the

creation  of  incubators  to  nurture  minority and women-owned business
enterprises with growth potential.
(b)  Under  this  subdivision the corporation is authorized to provide
low-interest loans and grants for construction financing  and  permanent
financing of up to seventy-five percent of project costs up to a maximum
of  six  hundred  fifty  thousand dollars per project, provided that the
total amount of grant assistance provided  pursuant  to  this  paragraph
shall  not  exceed  twenty  percent of an appropriation provided for the
purposes of this section.
(c) Incubator projects eligible for such assistance shall involve  the
renovation  or  reconstruction of existing facilities or the acquisition
of equipment, except that construction shall be allowable  in  cases  in
which   an   applicant  can  demonstrate  to  the  satisfaction  of  the
corporation that an existing facility is unavailable in the area  to  be
served by the new incubator facility.
(d)  Incubator  projects  are  not  eligible  to receive loans for the
purpose of covering  operating  costs  or  supplying  incubator  support
services,  except  that  incubators  in  their  first eighteen months of
operation may receive one-time  grants  not  to  exceed  forty  thousand
dollars,  which  costs  may  include administrative costs of employing a
resident administrator/advisor  to  the  incubator,  provided  that  the
corporation  shall  not  expend  a  sum  greater  than two hundred fifty
thousand dollars in any one state fiscal year, or  so  much  as  may  be
specifically appropriated for this purpose.
(e)  Eligible  incubator  projects shall be required to demonstrate to
the corporation's satisfaction:
(i) public or private support and involvement sufficient  to  complete
the  renovation  of  existing  facilities  or  the  construction  of new
facilities and the acquisition of equipment;
(ii) significant community support for the project;
(iii) the existence of prospective tenants for such incubator space;
(iv) demand for such incubator space, which may  include  evidence  of
the   unavailability  of  suitable  space  for  prospective  tenants  at
appropriate rental or  lease  costs  in  the  community  in  which  such
prospective tenants are located; and
(v) the inability of the project to occur without financial assistance
from the corporation.
(f)  The  corporation  shall  establish  criteria  for eligibility for
funding for  incubator  projects,  including  but  not  limited  to  the
following:
(i) the project must be designed to provide low-cost space and support
services  to  incubator  tenants,  coordination  with  other  sources of
assistance and flexible leasing arrangements for tenants;
(ii) the project  sponsors  must  provide  a  management  plan  and  a
business   plan   for   operating  the  incubator  satisfactory  to  the
corporation; and
(iii) the project gives preference for incubator space and  assistance
to minority- and women-owned businesses which currently receive, or have
received,  assistance  from the corporation pursuant to this section and
to incubator projects proposed to be located in economically  distressed
areas.
(8)  Minority-  and women-owned business technical assistance program.
(a) The corporation shall establish a comprehensive technical assistance
program within the minority and women business  development  office,  in
cooperation  with  the  department of economic development's division of
minority- and women-business development established pursuant to article
four-A of the economic development law, to provide technical  assistance
to  minority-  and  women-owned  business enterprises and to prospective

minority- and women-business entrepreneurs through third  party  service
providers,  which  assistance  shall include, but not be limited to: (i)
technical assistance in development and  execution  of  business  plans,
including   the   formation   of,  acquisition  of,  management  of,  or
diversification of a minority- or women-owned business enterprise;  (ii)
technical  assistance  with applications for obtaining funds from public
and  private  financing  sources;  (iii)  technical  assistance  in  the
development  of  a  working  capital  budget;  (iv)  referrals  to other
providers  of  technical  assistance  to   minority-   and   women-owned
businesses  and  minority  and  women  entrepreneurs, where appropriate,
including the entrepreneurial assistance program established pursuant to
article  nine  of  the  economic  development  law;  and  (v)  technical
assistance  through  education  programs directed primarily at women and
minority entrepreneurs.
(b) Technical assistance may  be  provided  through  direct  corporate
support,  through  grants  to  or  contracts  with  service providers or
governmental  entities,   and   minority-   and   women-owned   business
enterprises and individuals.
(9)  Priorities.  The  corporation shall give priority to applications
for assistance pursuant to this section in which  the  business  seeking
such  assistance  indicates  a  commitment  to  first  consider  persons
eligible to participate in federal job training  partnership  act  (P.L.
97-300) programs.
(10)  Non-application of certain provisions. The provisions of section
ten and subdivision two of section sixteen of this act shall  not  apply
to assistance or projects authorized pursuant to this section.
(11)  Rules  and  regulations.  The corporation shall, assisted by the
commissioner of  economic  development  and  in  consultation  with  the
department  of economic development, promulgate rules and regulations in
accordance with the state administrative procedure act. Such  rules  and
regulations  shall  be  consistent  with  the  program  plan required by
subdivision nineteen of section one hundred of the economic  development
law. No funds shall be disbursed under this program until such rules and
regulations  have  been  reviewed  and  approved by the corporation. All
assistance and projects funded under this program  shall  be  funded  in
accordance  with  the  rules  and  regulations in effect on the date the
completed application for such  assistance  shall  be  received  by  the
corporation.
(12)  Minority  and  women  business  development and lending account.
Notwithstanding any provision of law to the  contrary,  the  corporation
shall  establish  within  the treasury of the corporation a minority and
women business development and lending account, and shall pay into  such
account  any  moneys  which may be made available to the corporation for
this purpose from any source  including,  but  not  limited  to,  moneys
appropriated by the state and any repayment of principal and interest on
loans  made by the corporation pursuant to the minority- and women-owned
business development and lending program.  Funds  in  the  minority  and
women business development and lending account, including funds from the
repayment  of  principal  and interest on loans made by the corporation,
may be used for any form of assistance authorized hereunder. The amounts
deposited in the minority and women  business  development  and  lending
account  may  not  be  interchanged  with  any other account, but may be
commingled with any other account for  investment  purposes.  All  loans
disbursed  by  the  corporation  shall  be  repaid into the account. The
corporation shall enter into a written agreement with  the  director  of
the  budget for repayment, to the state comptroller to the credit of the
capital projects fund, of all moneys in the account after  a  period  of
time to be determined by the corporation and the director of the budget.

The  corporation  shall  transfer  to  the  minority  and women business
development  and   lending   account:   all   moneys   appropriated   or
reappropriated  by  New  York state for the minority and women revolving
loan trust fund that have not been committed prior to the effective date
of  the  appropriation  for  the  program in the current fiscal year, or
become uncommitted subsequent to the effective  date  of  the  program's
appropriation  for  the  current  fiscal  year;  and  all  repayments of
principal and interest on  loans  made  by  the  corporation  which  are
currently  on deposit in, or payable to, the minority and women business
development and lending account.
(13) Standardization. The corporation shall streamline the review  and
approval  process  for  projects  and  wherever possible standardize all
relevant attendant documentation and legal documents.
(14) Approval cycle. The corporation shall approve eligible  loans  or
grants   on  at  least  a  four-month  cycle  and  shall  give  priority
consideration to the comparative degree of economic distress within  the
areas in which the project is located. Other factors to be considered by
the  corporation  shall  include  the  impact  of  the  project  on  the
employment and economic condition of the  community  and  the  financial
feasibility of the project.
(15)  Repayment.  Notwithstanding the provisions of section forty-a of
the state finance law and any other general or special law,  no  written
agreement  under  this program shall require repayment at any time or on
any terms inconsistent with the provisions of this act or the  New  York
state  project finance agency act; except, however, that the corporation
may make grants to projects using funds appropriated  for  this  purpose
and that the repayment provision may not apply to such grants.
(16)  Reports.  The  chairman  of  the corporation shall submit to the
director of the budget, the speaker of the assembly  and  the  temporary
president  of  the  senate  an  evaluation  of  the effectiveness of the
program prepared by  an  entity  independent  of  the  corporation.  The
corporation  shall  select  the  program evaluator through a request for
proposal process. Such evaluation shall determine whether the assistance
provided has enhanced the economic condition of  assisted  companies  or
communities,  and shall make recommendation for improvements which would
make the program more effective. Such evaluation shall be  submitted  by
September  first, nineteen hundred ninety-five and September first every
two years thereafter.
§ 16-d. Urban and community development program. (1) Definitions.  For
the purposes of this section:
(a)  "Business  improvement  district" shall mean a special assessment
district established pursuant  to  article  nineteen-A  of  the  general
municipal law.
(b)  "Business district" or "central business district" shall mean the
central district of a municipality or  neighborhood  area  traditionally
used for commercial purposes.
(c)  "Commercial  strip"  shall  mean  a predominantly commercial area
traditionally used for commercial purposes which may not be the  primary
business  district  and  which is one of several commercial districts in
the municipality in which it is located.
(d) "Economically distressed areas" shall mean areas as determined  by
the  corporation  meeting  criteria  indicative  of  economic  distress,
including unemployment rate; rate of employment change; percentages  and
numbers  of  low-income  persons;  per capita income and per capita real
property wealth; such other indicators of distress  as  the  corporation
shall  determine.  Economically  distressed  areas  may  include cities,
municipalities, block numbering areas, and census tracts.
(e) "Highly distressed" shall  mean  suffering  from  severe  economic
distress  as  determined  by  the  corporation using criteria similar to
those set forth in subdivision (a) of section nine  hundred  fifty-eight
of  article  eighteen-B  of  the  general  municipal law for determining
eligibility for empire zone status.
(f)  "Not-for-profit  corporation"  shall mean a corporation organized
under the provisions of the not-for-profit corporation law.
(2) Urban and community development  program.  The  corporation  shall
establish  an  urban and community development program which shall offer
the following assistance:
(a) Urban and community  development  assistance  grants  pursuant  to
subdivision five of this section.
(b)  Urban  and  community  project development assistance pursuant to
subdivision six of this section.
(c) Neighborhood and  community  partnership  assistance  pursuant  to
subdivision seven of this section.
(d)  Urban and community commercial revitalization revolving loan fund
assistance pursuant to subdivision eight of this section.
(e) Urban and community technical assistance pursuant  to  subdivision
nine of this section.
(3) Applications. Applications for support under this program shall be
made  in  a  form  and  manner  as  determined  by  the  corporation and
applicants shall be required  to  meet  the  criteria  and  requirements
established  by  the corporation, which shall include but not be limited
to:
(a) Factors of economic distress;
(b) The extent of support for, and  involvement  in,  the  program  or
project  of  units of local government, the local business community and
local economic development professionals; and
(c)  Such  other  requirements  as  are  necessary  to  implement  the
provisions of this section.
(4) Preference. Preference will be given to projects which are located
in  highly distressed communities, and for which other public or private
funding sources are not available.
(5) Urban and community  development  assistance  grants.  (a)  Grants
awarded  under this subdivision shall be awarded on a competitive basis,
in response to requests for proposals, and through  direct  applications
accepted   at   other  times  at  the  discretion  of  the  corporation,
distributed  to  business  improvement  districts,   local   development
corporations,   municipalities   and   other   not-for-profit   economic
development  organizations  by  the  corporation  for  the  purpose   of
soliciting  applications.  Requests for proposals under this subdivision
shall set forth  such  criteria  as  the  corporation  deems  necessary,
including  those  set  forth  in  subdivision  three of this section and
including, but not limited to the following:
(i) the potential impact the proposed project would have  on  economic
development  and  employment  opportunities  in  the  community  and the
region; and
(ii) the existence of significant support for such activities from the
local business community, local government and  community  organizations
within the community, including the commitment of financial resources.
(b) The corporation is hereby authorized, under this subdivision to:
(i)   provide   grants   to   business  improvement  districts,  local
development  corporations,  other  not-for-profit  economic  development
organizations,  and municipalities involved in commercial revitalization
activities in central business  districts  or  commercial  strips,  such
activities  to  include  architectural  design  studies and services and
other  redevelopment  work   in   connection   with   the   design   and

implementation of a plan for facade and other improvements to commercial
strips  and  central  business districts throughout New York state. Such
grants may include  monies  available  for  individual  property  owners
and/or tenants who agree to improve their property in accordance with an
overall  design  plan,  provided  that,  such individual property owners
and/or tenants shall be required  to  match  the  amount  of  any  grant
awarded to them.
(ii)  provide  grants  to  local  development  corporations,  business
improvement  districts  and  other  not-for-profit   organizations   for
studies,  surveys  or  reports,  and feasibility studies and preliminary
planning studies to assess a particular site or  sites  or  facility  or
facilities  for any economic development purpose other than residential;
and to identify development opportunities  within  established  business
improvement districts.
(iii)  provide  urban  planning  grants on a matching basis to cities,
counties, or municipalities desiring to prepare  and  develop  strategic
development  plans  for a city, county, or municipality or a significant
part thereof.
(iv) provide grants to municipalities for studies, surveys, or reports
and feasibility studies or preliminary planning studies  to  assess  the
economic  viability  and  local  credit  needs  of the community for the
purposes of establishing a  banking  development  district  pursuant  to
section ninety-six-d of the banking law.
(c)  Notwithstanding  anything  contained  to  the  contrary  in  this
subdivision, section ten and subdivision two of section sixteen of  this
act shall not apply to any grants authorized under this subdivision.
(6)  Urban  and  community project development assistance. (a) Grants,
loans and loan guarantees authorized pursuant to this subdivision  shall
be limited to fifty percent of the actual cost of the proposed projects,
and  shall  be  located  in  empire zones designated pursuant to article
eighteen-B of the general municipal law or in highly distressed areas.
(b) The corporation is hereby authorized, under this  subdivision  to:
provide  loans,  loan guarantees and grants for projects as set forth in
paragraph (c) of this subdivision, and to  provide  project  development
assistance  by the corporation acting as a project developer pursuant to
paragraph (d) of this subdivision.
(c) Project development loans, loan guarantees  and  grants.  (i)  The
corporation  may  make  loans,  loan guarantees and grants in accordance
with the provisions of  this  act  for  which  no  other  funds  of  the
corporation  are available, with the exception of the appropriations for
this program and moneys reappropriated  under  the  high  risk  targeted
investment program, for the acquisition, renovation, and construction of
commercial  industrial  and  mixed-use facilities, or for feasibility or
planning studies in connection with such development.
(ii)  Such  projects   shall   include   projects   related   to   the
implementation  of  necessary  construction  and reconstruction projects
identified or planned under grants received pursuant to subdivision five
of this section.
(iii) Projects intended to be publicly-owned shall not be eligible for
financial assistance in connection with the acquisition, construction or
renovation of a facility or development hereunder unless such project is
leased to a private enterprise.
(d)  Notwithstanding  anything  contained  to  the  contrary  in  this
subdivision,  section ten and subdivision two of section sixteen of this
act shall not apply  to  any  feasibility  grants  or  planning  studies
authorized under paragraph (c) of this subdivision.
(e)  Project  development  assistance.  (i) The corporation may act as
developer in the acquisition, renovation, construction, leasing or  sale

of  development  projects,  other  than residential projects, authorized
pursuant to this act in order to  stimulate  private  sector  investment
within the affected community.
(ii) In acting as a developer, the corporation may borrow for purposes
of  this  paragraph for approved projects in which the lender's recourse
is solely to the assets of the project, and may make  such  arrangements
and  agreements with community-based organizations and local development
corporations as may be required  to  carry  out  the  purposes  of  this
section.
(iii)  Prior  to  developing  any  such project, the corporation shall
secure a firm commitment from entities, independent of the  corporation,
for the purchase or lease of such project.
(iv) Projects authorized under this paragraph whether developed by the
corporation   or   a  private  developer,  must  be  located  in  either
state-designated empire zones or in highly distressed communities.
(v) The corporation, for purposes of this paragraph shall only  select
projects  that have project costs not to exceed three million dollars of
which the corporation's participation shall not exceed sixty percent  of
the  total,  for  which  there  is  a  demonstrated  demand  within  the
particular community.
(f) Any other provisions  of  this  subdivision  notwithstanding,  the
corporation  may  establish a loan guarantee program in conjunction with
banks and other financial  institutions  to  guarantee  working  capital
loans  and  loans  for  real  estate,  construction  and  renovations to
not-for-profit community and  economic  development  organizations  that
serve highly distressed areas.
(7)  Neighborhood  and  community  partnership.  (a)  There  is hereby
created  within  the  urban  and   community   development   program   a
neighborhood  and  community  partnership program which shall be used to
support regional  and  local  activities  designed  to  retain  existing
businesses  and jobs within a region or locality, increase the viability
of existing businesses, and stimulate and encourage the formation of new
enterprises and small business growth.
(b) The corporation  shall,  within  available  appropriations,  award
grants  or  enter  into  contracts for services to eligible entities and
organizations as set forth in this subdivision on a  competitive  basis,
in  response  to requests for proposals, and through direct applications
accepted at other times at the discretion  of  the  corporation.  Grants
shall  not  exceed  one  hundred  thousand  dollars  per project, and an
applicant shall be permitted to apply  for  support  in  more  than  one
project area listed under paragraph (e) of this subdivision, but the sum
total of grants received under this subdivision by any one applicant for
more  than  one project approved under paragraph (e) of this subdivision
shall not exceed two hundred fifty thousand dollars.
(c) For the purposes of this subdivision the corporation  shall  enter
into  annual  contracts for services or award grants in an amount not to
exceed fifty  percent  of  program  or  project  costs  in  economically
distressed  areas,  or forty percent of such costs for eligible projects
or programs in non-economically distressed areas, or seventy percent  of
program or project costs in empire zones established pursuant to article
eighteen-B of the general municipal law.
(d) The corporation shall enter into no more than one contract or make
more  than  one  grant  per  year per application under this subdivision
regardless of the number of projects for which an applicant has  applied
and for which funding has been approved. In the case of applications for
multiple projects to be conducted by a single applicant, the corporation
may,  at  its  discretion,  provide a grant or enter into a contract for

services with the applicant for some or all of the projects for which an
applicant has applied.
(e)  Not-for-profit  corporations,  business improvement districts and
community development organizations  shall  be  eligible  to  apply  for
support  under  this  subdivision  to  operate  a program or programs of
business and economic  development  services  to  stabilize,  retain  or
revitalize  existing businesses, and to assist small and new businesses,
including, but not limited to assistance  to  individual  businesses  or
business sectors in such project areas as:
(i) the analysis of industrial sectors;
(ii)  the  provision  of  services,  such  as  regulatory  compliance,
security and marketing, to industries;
(iii)  productivity  assistance  to  mature   industries   and   small
businesses,   including  but  not  limited  to,  high  performance  work
organization and quality improvement programs;
(iv) labor-management cooperation specific to an area or industry;
(v) management services to industrial parks and incubator facilities;
(vi) the creation of business  support  networks,  including  flexible
manufacturing networks composed of small businesses, surveys of existing
businesses  and business sectors, the formation of quality networks, the
targeting of firms or sectors with  networking  potential,  analysis  of
network  firms' production potential, group marketing, group purchasing,
shared employee programs, and the  establishment  of  regular  lines  of
communication between such firms;
(vii)  the  establishment  and staffing of network service centers for
flexible   manufacturing   networks,   combining   business    services,
marketing/procurement  assistance, and technology demonstration/training
centers, such centers to be industry  managed  and  to  maintain  strong
connections  to  labor  unions,  universities, and the services provided
through the industrial effectiveness program pursuant to  article  seven
of  the  economic  development law, local or federal economic assistance
programs;
(viii) export, marketing, procurement and subcontracting assistance to
small  and  medium-sized  industrial  firms,  including  minority-   and
women-owned  businesses,  and  to  flexible  manufacturing networks, and
programs to assist regional  and  multi-county  business  marketing  and
procurement programs;
(ix)  assistance to targeted incubator facilities to support new firms
producing products and services for which there exists a  stable  demand
but no local production;
(x)  business  planning,  management  assistance  and  counseling, and
financial packaging assistance  to  small  and  medium-sized  industrial
firms,   including   minority-   and  women-owned  businesses,  flexible
manufacturing  networks,  and  new  enterprises  and  small  businesses,
including  the  establishment  of  neighborhood-based  business  service
centers designed to deliver comprehensive technical  assistance  to  new
and small businesses in specific communities and neighborhoods;
(xi)   programs   to   assist   economically  distressed  regions  and
communities  to  identify  new  business  opportunities,  plan  for  new
enterprise development, and manage economic development projects;
(xii)  innovative programs of public and private cooperation to foster
new enterprise development and small business growth;
(xiii) programs to assist new  enterprises  and  small  businesses  to
identify  and  access  public  and  private  sources  of equity, working
capital and other types of financing;
(xiv) programs that improve the ability of small businesses to  access
state job training programs;
(xv)  programs  to  assess the need for, or to implement total quality
management  training   programs,   employee   retraining,   and   skills
remediation and/or upgrading;
(xvi)  employment  exchange  services  such  as  job placement and job
development;
(xvii)  tourism  matching  grants  to  regions,  as  defined  by   the
commissioner  of  economic  development,  to  conduct tourism marketing,
promotion and information activities;
(xviii) programs to assist small businesses  in  developing  workplace
policies,  including  but  not limited to the design of employee benefit
and assistance programs and developing child care programs;
(xix) assistance to  formulate  and  implement  a  business  retention
strategy  developed  by  the  corporation  in  cooperation  with a local
development corporation. Such assistance may  include  grants  to  local
development  corporations  as  well as funding for services and expenses
for that purpose.
(g) Applications for support  or  assistance  under  this  subdivision
shall be made in a form and manner as determined by the corporation, and
applicants  shall  be required to meet the criteria and requirements set
forth in subdivision three  of  this  section  and  other  criteria  and
requirements  determined  by  the  corporation  pursuant  to  this  act,
including:
(i)  the  likelihood  that  state   assistance   will   enable   local
not-for-profit  organizations or other eligible organizations to provide
services and activities not otherwise provided in the area served by the
applicant;
(ii) the potential of the project or program to stimulate  or  enhance
economic  development  in  the area and to create or retain substantial,
permanent private sector jobs;
(iii) the innovative nature of the  proposed  project  or  program  in
furtherance of community economic development; and
(iv) the demonstrated ability of the applicant to deliver the proposed
assistance and services.
(h)  Projects  and  programs  in  communities  that  do not qualify as
economically distressed areas shall be eligible for funding  under  this
subdivision if such projects meet one or more of the following purposes:
(i)  projects located in a non-distressed area that will significantly
contribute to the revitalization of an economically distressed area;
(ii) support for business development projects of  women,  members  of
minority groups, or dislocated workers;
(iii)  assistance  to  small or medium-sized manufacturing firms which
are seeking to modernize to remain competitive;
(iv) projects to diversify the economic base of  a  community  heavily
dependent on a single industry;
(v)  projects that will prevent the loss or significant contraction of
a company which is the primary employer in a community, or where loss of
a company would have a major adverse impact  on  a  community's  overall
economic condition;
(vi)   projects   involving   expanding  companies  that  will  create
substantial numbers of new, private sector jobs;
(vii) projects creating permanent private sector jobs  for  dislocated
workers, public assistance recipients, or the long-term unemployed; or
(viii)  projects  that  are an integral part of a community commercial
revitalization strategy which contributes to the economic  health  of  a
community,  including  the  provision  of matching funds to newly formed
business  improvement  districts  pursuant  to  paragraph  (i)  of  this
subdivision.
(i)  Notwithstanding  any  other  subdivision  of  this  section,  the
corporation may make grants to  newly  formed  small-  and  medium-sized
business  improvement  districts  during  their  first  three  years  of
operation. Such grants shall provide up to sixty-six percent of eligible
project  costs  in  highly  distressed  areas and up to fifty percent of
project costs in distressed areas.
(j)  Notwithstanding  anything  contained  to  the  contrary  in  this
subdivision,  section ten and subdivision two of section sixteen of this
act shall not apply to any grants authorized under this subdivision.
(8) Urban and community commercial revitalization revolving  loan  and
loan  guarantee fund. (a) The corporation shall, from any appropriations
made available for  this  purpose,  establish  an  urban  and  community
commercial  revitalization  revolving  loan  fund  account and a related
administrative expenses trust fund account in  order  to  stimulate  the
development  of central business districts and commercial strips through
a decentralized lending program operated in  conjunction  with  business
improvement   districts,   local   development  corporations  and  other
not-for-profit  corporations  serving  central  business  districts   or
commercial  strips.  Assistance  from  this  subdivision will be awarded
through  a  competitive  process  initiated  by  the  urban  development
corporation,  which  includes  a request for proposals as well as direct
applications  accepted  at  other  times  at  the  discretion   of   the
corporation.
(b)  Loans  and  loan  guarantees  made  from  the urban and community
commercial revitalization revolving loan fund shall be for improvements,
expansions, and start-ups of  businesses  located  in  central  business
districts and commercial strips.
(c)  Such loans and loan guarantees shall be administered by qualified
business improvement districts, local development corporations and other
not-for-profit  corporations  designated  by  the   corporation   on   a
competitive basis pursuant to a request for proposals process.
(d)  For  the  purpose of this subdivision, "local trust fund account"
and "local revolving loan fund" shall mean a local urban  and  community
commercial revitalization revolving loan fund account.
(e) The corporation shall pay into such fund any monies made available
to  the  corporation  for  such  fund  from  any source including monies
appropriated by the state and any income earned by, or  incremental  to,
the  fund  due  to  the  investment  thereof, or any repayment of monies
advanced from the fund. The monies held in or credited to the fund shall
be expended for the purposes set forth in this subdivision and  may  not
be  interchanged  with  any other account or fund, but may be commingled
with any other account for investment purposes. All loans  disbursed  by
the corporation from such fund shall be repaid into the fund.
(f)  The corporation shall allocate any monies made available for such
fund for the purpose of establishing local trust  fund  accounts  and  a
corresponding   number  of  local  administrative  expenses  trust  fund
accounts.
(g) The corporation shall establish a  local  administrative  expenses
trust fund account for the benefit of each entity selected to administer
a local trust fund account pursuant to the following conditions:
(i)  the  initial  deposit in each local administrative expenses trust
fund account shall be in an amount to be determined by the  corporation,
but shall not exceed twenty-five thousand dollars;
(ii) an entity designated to administer a local trust fund account may
use  the  funds  in its local administrative expenses trust fund account
for expenses incurred by it in the start-up and  administration  of  the
financial and technical assistance programs it is required to administer
under this section; and
(iii)   the   corporation   shall   also   deposit   into  each  local
administrative expenses trust fund account:
(A)  all income earned from the moneys on deposit in the corresponding
local loan trust fund account during the  first  year  of  the  entity's
administration  of  said  account.  Beginning  with  its  second year in
administering a local revolving loan trust fund  account,  said  amounts
may  be used for costs incurred by the entity in administering the local
revolving loan trust fund account; and
(B) repayments of interest on loans made from the corresponding  local
revolving  loan  trust  fund  account.  Such funds may be used for costs
incurred at any time by an administering entity in its administration of
a local revolving loan trust fund hereunder;
(iv) funds deposited in an administrative expenses trust fund  account
shall be disbursed by the corporation to the entity that administers the
corresponding  local  revolving  loan trust fund account on a semiannual
basis and  shall  be  expended  by  the  entity  in  accordance  with  a
semiannual budget and any updates of same approved by the corporation.
(g-1)  Notwithstanding  any other provision in this subdivision, where
applicable, the corporation is authorized to enter  into  agreements  as
may  be  necessary for the administration and reporting of funds repaid,
received,  expended  or  collected  in  a  manner  consistent  with  the
provisions  in  section  sixteen-t of this act. The use of such funds by
the corporation shall be  consistent  with  the  terms,  conditions  and
restrictions  set forth in this section, to provide financial assistance
to eligible entities as designated under this  subdivision.  Outstanding
expenses,  loans  and  other obligations executed prior to the effective
date of this paragraph shall be subject to the terms and  conditions  of
the original contract or contracts.
(h)  To  be  eligible  to  apply for designation to administer a local
trust fund account, a not-for-profit corporation shall be required to:
(i) have represented on its board of directors, in such cases where an
area to be served by a local trust fund account has located  within  its
service  area an empire zone designated pursuant to section nine hundred
sixty of the general municipal law, one or more of the following:
(A) an empire zone capital  corporation  if  established  pursuant  to
section nine hundred sixty-four of the general municipal law; or
(B)   community   based  local  development  corporations,  industrial
development agencies, or other not-for-profit  entities  which  serve  a
municipality  in which an empire zone has been established and which, as
one of their  primary  purposes,  provide  services  and  assistance  to
business  enterprises  located  or  to  be  located in such empire zone,
including minority- and women-owned businesses;
(ii) have represented on its board of directors,  selected  local  and
community development corporations, industrial development agencies, and
other   not-for-profit  entities  that  provide  services  to  community
businesses and, as one of their primary purposes, provide  services  and
assistance to business enterprises located in central business districts
or commercial strips;
(iii)  have  strong  written  commitments from any empire zone capital
corporation, local and  community  development  corporation,  industrial
development agency, and other not-for-profit entities, if represented on
its board, to assist the not-for-profit corporation in administering the
local  trust fund account, including the provision of business planning,
loan application preparation, loan application analysis, management  and
other technical assistance as needed;
(iv)  have  staff,  or  have  access to staff from organizations which
participate in the administration of a designated local  revolving  loan
trust  fund  with  sufficient  expertise  to  analyze  applications  for

financial assistance,  to  regularly  monitor  financial  assistance  to
clients,  and  to  provide or arrange for the provision of management or
technical assistance to clients;
(v)  have an effective plan to market its services and market programs
provided by the corporation and the department of economic  development;
and
(vi) have established a loan committee composed of six or more persons
experienced  in  business  management,  commercial  lending  or  in  the
operation of a for-profit business. Such committee  shall  review  every
application  submitted  by  an  eligible entity for financial assistance
from the local trust fund account and shall determine the feasibility of
the project proposed in the application and the likelihood of  repayment
of  the  requested  financing and recommend to the governing body of the
eligible entity such action as the loan committee deems appropriate.
(i) Any entity selected to administer a  local  revolving  loan  trust
fund  account shall be eligible to draw funds from the account as needed
to provide the following  types  of  financial  assistance  to  eligible
businesses  upon certification to and acceptance by the corporation that
such assistance complies with rules and regulations promulgated  by  the
corporation:
(i)  working  capital loans, provided that the amount of the loan does
not exceed fifteen thousand dollars and the term of the  loan  does  not
exceed five years; and
(ii) loans for the acquisition and/or improvement of real property and
for the acquisition of machinery and equipment, provided that the amount
of  the loan does not exceed twenty thousand dollars and the term of the
loan does not exceed the useful life of the equipment or property.
(j) Any other provisions  of  this  subdivision  notwithstanding,  the
corporation  may  enter  into  agreements  for  other  types of locally,
community or regionally administered loan programs interested in  making
small  loans,  including micro-loans, administered by municipalities and
not-for-profit organizations, to provide loans to businesses located  in
commercial  strips  and  central business districts located within their
respective service areas, provided that:
(i)  the  corporation  must  secure  certification  from   an   entity
administering  such  a program that the loans will be made to businesses
through these agreements and meet  the  purposes  and  requirements  set
forth pursuant to this subdivision;
(ii) loan review committees are established by each such administering
entity  and  that  each  entity  designated  under  this  paragraph have
established a loan committee composed of six or more persons experienced
in business management, commercial lending or  in  the  operation  of  a
for-profit business;
(iii)   no   other   entity  eligible  under  this  subdivision  which
satisfactorily meets all requirements of this  program  has  applied  to
meet  the  needs  of an area proposed to be served under this paragraph;
and
(iv) the corporation  shall  not  expend  any  more  than  twenty-five
percent  of  the  amount  appropriated  for  programs  pursuant  to this
subdivision  in  any  one  fiscal  year,  or  an   amount   appropriated
specifically for the purpose of this paragraph.
(k)  An  entity  designated  to administer such a revolving loan trust
fund account shall pay to the corporation  for  deposit  any  repayments
received  in  connection  with  financial  assistance provided from such
account pursuant to the following:
(i) payments consisting of the repayment of the principal amount of  a
loan  shall  be  deposited  by  the  corporation in the local trust fund
account from which the loan was made; and
(ii) the interest earned from the investment, by the  corporation,  of
monies  in  each  local  revolving  loan trust fund during and after the
second year of a selected entity's administration of said account  shall
be  deposited  by the corporation into the corresponding local revolving
loan  trust fund account and used to provide the financial assistance to
businesses located in commercial strips and central business districts.
(k-1) Notwithstanding any other provision in this  subdivision,  where
applicable,  the  corporation  is authorized to enter into agreements as
may be necessary for the administration and reporting of  funds  repaid,
received,  expended  or  collected  in  a  manner  consistent  with  the
provisions in section sixteen-t of this act. The use of  such  funds  by
the  corporation  shall  be  consistent  with  the terms, conditions and
restrictions set forth in this section, to provide financial  assistance
to  eligible  entities as designated under this subdivision. Outstanding
expenses, loans and other obligations executed prior  to  the  effective
date  of  this paragraph shall be subject to the terms and conditions of
the original contract or contracts.
(l) The decision to approve or reject  an  application  for  financial
assistance  pursuant to the provisions of this subdivision shall be made
by the majority of the board of directors of the  entity  designated  to
administer the local revolving loan trust fund account and such decision
shall be final.
(m)  An  entity  designated to administer a local revolving loan trust
fund account shall not provide any financial  assistance  authorized  by
this subdivision unless the following conditions are met:
(i)  the  applicant  has  a  minimum  equity  interest of at least ten
percent in the project;
(ii) there is reasonable prospect of repayment;
(iii) the project will comply with applicable environmental rules  and
regulations;
(iv) the applicant has certified that it will not discriminate against
any  employee or any applicant for employment because of race, religion,
color, national origin, sex, or age; and
(v) a staff member or a representative of  the  entity  designated  to
administer  the  local  revolving  loan  trust fund account acting in an
official capacity  has  personally  visited  the  project  site  or  the
applicant's place of business.
(n)  Financial  assistance from the local trust fund shall not be made
available for:
(i) projects that would result  in  the  relocation  of  any  business
operation  from  one municipality within the state to another, provided,
however, that such a project shall  not  be  deemed  ineligible  if  all
municipalities  from  which such business will be relocated are notified
in writing of the corporation's approval of such funding and  the  chief
executive   officers   of  the  municipalities  do  not  object  to  the
corporation in writing within a period of twenty days of receipt of  the
notification;
(ii)  refinancing  any  portion  of  the  total  project cost or other
existing loans or debts of an  applicant,  except  for  the  purpose  of
transferring to the employees or to other local interests ownership of a
company  that  would  otherwise  depart  from  or cease or substantially
reduce operations in the state; and
(iii)  providing  funds,  directly   or   indirectly,   for   payment,
distribution,  or  as a loan, to owners, partners or shareholders of the
applicant enterprise, except as ordinary income for services rendered.
(o) An entity designated to administer a local  revolving  loan  trust
fund  account may charge application, commitment and loan guarantee fees

pursuant to a schedule of fees adopted by such entity  and  approved  by
the corporation.
(p)  An  entity  designated to administer a local revolving loan trust
fund account shall submit annual reports to the  corporation  describing
the   financial   assistance  provided  pursuant  to  this  subdivision,
including:
(i) the number of projects assisted, the amount and type of assistance
provided and a description of the projects;
(ii) the number of jobs created or retained; and
(iii) such other information as the corporation may require.
(q) The corporation shall, assisted by the  commissioner  of  economic
development   and  in  consultation  with  the  department  of  economic
development, promulgate rules and regulations  in  accordance  with  the
state  administrative  procedure  act to implement the provisions of the
urban  and  community  commercial  revitalization  revolving  loan  fund
established   pursuant  to  this  subdivision,  and  to  implement  such
revolving loan trust fund  established  pursuant  to  this  subdivision,
setting forth procedures to be followed by, and the responsibilities and
obligations  of,  entities  designated  to  administer  local trust fund
accounts. Such rules  and  regulations  shall  be  consistent  with  the
program  plan required by subdivision nineteen of section one hundred of
the economic development law. No funds shall be disbursed  from  amounts
appropriated  to  implement  the  provisions  of this section until such
rules  and  regulations  have  been  reviewed  and   approved   by   the
commissioner of economic development and the director of the budget.
(9)   Urban  and  community  technical  assistance.  There  is  hereby
established within the urban and community development program an  urban
and  community  technical  assistance  program. Assistance awarded under
this subdivision shall be awarded on a competitive basis, in response to
requests for proposals and through direct applications accepted at other
times at the discretion of the corporation. The corporation shall,  from
appropriations  made  available  therefor,  provide  assistance  for the
purpose of developing the capacity of  local  and  regional  development
organizations   and   communities   to  undertake  economic  development
initiatives by:
(a) Conducting outreach to communities in areas where little, if  any,
economic  development  capacity  exists, including identifying potential
applicants  and  providing  assistance  to   potential   applicants   in
completing   the   application   process   for  assistance  and  meeting
eligibility  requirements  for  federal,  state  and   local   programs.
Assistance  may  be  provided  through grants to not-for-profit economic
development organizations and through the deployment by the  corporation
of circuit riders.
(b)  Providing  community  building  grants to not-for-profit economic
development or community development organizations where  necessary,  in
organizing  for  economic  development,  analyzing potential development
opportunities or  obstacles  to  development,  and  developing  economic
development  strategies,  including feasibility studies for the creation
of business improvement districts in highly distressed areas.
(c)  Providing  technical  and  financial  packaging   assistance   to
not-for-profit    community   development   and   economic   development
organizations through grants to third party providers of such services.
(d) Contracting with  third  parties  for  the  purpose  of  providing
technical  assistance  to  municipalities, not-for-profit organizations,
local development corporations, local empire zone administrative boards,
or business  improvement  districts  to  analyze  potential  development
opportunities or obstacles.
(e)   Providing  grants  to  not-for-profit  economic  development  or
community development organizations for  approved  costs  to  strengthen
their  capacity  to  implement  economic  development,  job creation, or
business retention  strategies,  including  assistance  to  enable  such
organizations to provide technical and financial packaging assistance to
local  businesses,  manage  economic  development  projects, and provide
other  economic  development  services  that  are  identified  in  their
strategic plans.
(f) Creating an urban internship program to provide training and field
experience  to  individuals  committed  to  working in highly distressed
communities.
(g) Organizing and coordinating seminars and conferences to facilitate
the  exchange  of  information   regarding   commercial   revitalization
strategies.
(h) Establishing a community revitalization economic self-help program
to  assist public officials, community leaders, economic development and
community groups to undertake an economic development  planning  process
and  to  organize  for  economic  development.  Eligible  applicants for
assistance under this paragraph shall consist of  a  municipality  or  a
consortium of municipalities from a region of the state, such regions as
established   by   the   commissioner  of  the  department  of  economic
development pursuant to section  two  hundred  thirty  of  the  economic
development law.
(i)   Each   training   program   shall   require  each  participating
municipality to:
(A) establish an economic development planning group;
(B) undertake a community profile and needs assessment;
(C) undertake labor market and resource surveys; and
(D) produce a five-year strategic plan and a one-year work program.
(ii) Requests from municipalities or consortia of  municipalities  for
technical  assistance under this paragraph shall be made directly to the
corporation or  through  the  regional  offices  of  the  department  of
economic development.
(iii)  Participating  municipalities  shall  be  required  to  provide
matching funds in an amount at least equal to any funds provided by  the
corporation under this paragraph.
(iv)   The   corporation  is  authorized  to  enter  into  cooperative
agreements   with   statewide   and   regional   economic    development
organizations in New York state, acting as consultants, to conduct joint
training  programs  to  train  and  educate local officials and economic
development practitioners pursuant to this paragraph. Any  contract  for
services  with  such  organizations  shall  not  exceed the sum of fifty
thousand dollars for the conduct of each training program.
(10) Standard project program application. The corporation shall,  for
assistance  provided  in  this program, develop and use standard project
program applications pursuant to rules and regulations, which  shall  be
promulgated   by   the   corporation   in   accordance  with  the  state
administrative procedure act.
(11) Standardization. The corporation shall streamline the review  and
approval  process  for  projects  and  shall  standardize  all  relevant
attendant documentation and legal documents.
(12) Master agreement. The corporation  shall  enter  into  a  written
master agreement with the director of the budget providing for repayment
by  such corporation to the state of New York of all amounts expended by
the state from such appropriation for loans, on terms which may  include
interest thereon at a rate per annum to be determined by the director of
the  budget  and  a copy of such agreement shall be filed with the state

comptroller, the chairman  of  the  senate  finance  committee  and  the
chairman of the assembly ways and means committee.
(13)  Repayment.  Notwithstanding the provisions of section forty-a of
the state finance law and any other general or special law, such written
agreement shall not require repayment  at  any  time  or  on  any  terms
inconsistent  with  the  provisions  of  this  act or the New York state
project finance agency act. Except, however, that  the  corporation  may
make  grants  to  projects using funds appropriated for this purpose and
that the repayment provision may not apply to such grants.
(14) Report. The corporation shall: (a)  Monitor  the  performance  of
each  recipient  of  a  grant  or  contract under the provisions of this
section and require periodic and annual reports from each such recipient
at such time and in such a manner as prescribed by the chairman.
(b) Submit to the director of the budget, the speaker of the  assembly
and  the  temporary  president  of  the  senate  an  evaluation  of  the
effectiveness of the urban and community development program prepared by
an entity independent of the corporation. The corporation  shall  select
the  program  evaluator  through  a  request  for proposal process. Such
evaluation shall discuss the variety and types of programs supported  by
the  corporation  under this program; and, as appropriate, the extent to
which the program has served to create and maintain jobs; the extent  to
which  the  program  has  helped  to  increase  the  vitality  of  local
communities; the extent to which the program is coordinated  with  other
related  state  and  local  assistance programs; the extent to which the
program serves minorities and women; the extent  to  which  the  program
serves  urban  and  rural  areas; the extent to which the program serves
economically distressed and highly distressed areas; the extent to which
the program has helped to increase the capacity of local governments and
organizations to undertake economic  development  activities;  and  such
other  components as the commissioner of economic development shall deem
appropriate; and shall make recommendations for improvements which would
make the program more effective. Such evaluation shall be  submitted  by
September  first,  nineteen  hundred  ninety-five and by September first
every two years thereafter.
(c) (i) The lending  organization  shall  submit  to  the  corporation
annual  reports stating: the number of program loans made; the amount of
program funding used  for  loans;  the  use  of  loan  proceeds  by  the
borrower;  the  number  of  jobs created or retained; the status of each
outstanding  program  loan,  including  fund  balance;  and  such  other
information as the corporation may require.
(ii)  Beginning  April  1,  2019, the corporation shall publish on its
website the information contained in the annual reports  required  under
this  paragraph  and  paragraphs  (a)  and  (b)  of  this subdivision in
aggregate form omitting borrower identifiable information.
§ 16-e. Regional economic development partnership program. (1) For the
purposes of this section, the following words and terms shall  have  the
following meanings:
(a) "Business development project". A project involving an industrial,
manufacturing,  commercial,  research  and development, high technology,
tourism, agricultural or service company.
(b)  "Business  infrastructure  project".  A  project   involving   an
industrial,  manufacturing,  commercial,  research and development, high
technology,  tourism,  agricultural  or  service  company  which   shall
include,  but  not be limited to, basic systems and facilities on public
or privately owned property including drainage systems,  sewer  systems,
access  roads, sidewalks, docks, wharves, water supply systems, and site
clearance, preparation, improvements, and demolition.
(c) "Child care assistance project". A project for the  establishment,
expansion,  and  development  of  licensed not-for-profit child day care
centers which serve the needs  of  small  and  medium-sized  commercial,
industrial,   service  and  other  small  and  medium-sized  businesses,
health-related  businesses  and  degree-granting  institutions of higher
education.
(d) "Infrastructure investment project". A project  consisting  solely
of  site  preparation,  clearance  and demolition on property owned by a
municipality, local development corporation,  urban  renewal  agency  or
industrial development agency designated by a municipality.
(e)  "Infrastructure planning projects" shall mean projects consisting
solely of planning, including the preparation of schematic  designs  and
preliminary  environmental  assessments  for  a  business infrastructure
project or an infrastructure investment project.
(f) "Skills training assistance". A project related to  the  provision
of   firm-specific  or  industry-specific  employee  retraining,  skills
upgrading,  and  productivity  enhancement,  including  assessment   and
training   related   to  the  implementation  of  high-performance  work
organization strategies.
(g) "Tourism destination". A location or facility which is  likely  to
attract a significant number of visitors from outside the region.
(h)  "Revolving loan fund account grants" shall include: (i) grants to
provide the local match for federally funded community-based loan funds;
(ii) grants to capitalize and recapitalize regional revolving loan trust
fund accounts pursuant to section  sixteen-a  of  this  act;  and  (iii)
grants  to  recapitalize  minority  and  women revolving loan trust fund
accounts established pursuant to section sixteen-c of this act.
(2) Loans and grants. The corporation may make loans  and  grants  for
regional  strategic  planning,  business  development projects, business
infrastructure and infrastructure investment projects,  skills  training
assistance projects, economic development assistance projects, and child
care assistance projects, that create or retain permanent private-sector
jobs. Such projects and programs except as specifically provided herein:
(a)  Must  be  consistent  with a regional strategic plan for economic
development, as coordinated by  the  chairman  of  the  corporation  and
approved  by  the  director  of  the  budget, with copies filed with the
speaker of the assembly and the temporary president of the senate;
(b) Must create or retain substantial permanent private-sector jobs in
the case of  business  development  loans  and  business  infrastructure
projects,  or  in  the  case  of  a  child  care  assistance project the
corporation determines that the child day care center  will  improve  or
maintain the productivity of the sponsoring company or companies;
(c) Must be reasonably likely to be completed within the time and cost
estimates presented in the proposal; and
(d)  Must  be  unable to obtain sufficient funding on reasonable terms
from other public or private sources to permit the  project  to  proceed
without the requested assistance; and
(3)  Ineligible  projects.  Ineligible  projects  shall include retail
businesses, overnight  lodging  facilities,  debt  refinancing,  or  the
relocation  of  a  business  from  one  municipality within the state to
another municipality, provided, however, that such a project  shall  not
be deemed ineligible if all municipalities from which such business will
be  relocated  are  notified in writing of the corporation's approval of
such funding and the chief executive officers of the  municipalities  do
not  object to the corporation in writing within a period of twenty days
of receipt of the notification.
(4) Nonapplication to certain grants and  projects.  Section  ten  and
subdivision two of section sixteen of this act shall not apply to grants
and projects funded pursuant to the provisions of this section.
(5)  Business  development  project  loans.  (a)  Business development
project loans made by the corporation:
(i) may be for working capital, the purchase or leasing  of  equipment
and  machinery,  land  acquisition,  and  the acquisition, renovation or
construction of facilities;
(ii) shall not exceed one-third of the  total  project  cost  or  five
hundred thousand dollars, whichever is less; and
(iii)  shall  be  at  interest  rates  that  are necessary to make the
project feasible, as determined by the corporation.
(b) Notwithstanding section five of this  act,  no  more  than  twenty
percent  of  the funds available for business development projects shall
be grants limited to:
(i) interest subsidies to reduce  costs  of  financing  projects  that
demonstrate  an  inability  to  occur  without  subsidy, which shall not
exceed one-third of project  cost  or  four  hundred  thousand  dollars,
whichever is less; and
(ii)  feasibility  studies  of  the  transfer  of  ownership  to local
interests of a company which shall not exceed forty thousand dollars.
(c) The corporation may make loans or grants for business  development
projects  in economically distressed areas and in other areas; provided,
however, that in the case of other areas, the project furthers:
(i) business development by women, minorities, or unemployed persons;
(ii) modernization and productivity improvements by eligible firms;
(iii) diversification of the economic base of a community;
(iv) creation of substantial, permanent private-sector jobs, including
jobs for dislocated workers, public assistance recipients, disadvantaged
youth, or long-term unemployed persons;
(v) retention of jobs involving companies at imminent risk of reducing
employment;
(vi) prevention of the loss of a primary employer which  will  have  a
major adverse impact on the economic condition of a community; or
(vii) furthers the development of a tourism destination.
(6)  Business  infrastructure  projects.  (a) The corporation may make
loans and grants to businesses, municipalities,  industrial  development
agencies   and   local,  county  or  regional  development  corporations
designated by local governments  for  specific  business  infrastructure
projects   directly   related   and   essential   to  specific  business
developments.
(b) Grants and loans for infrastructure projects may be made in  areas
encompassed  by  empire zones established pursuant to article eighteen-b
of the general municipal law and in other areas, except that in the case
of other areas, a project loan or grant for  a  business  infrastructure
project  must  be  for  one  of  the  purposes  authorized  for business
development  projects  in  such  areas  pursuant  to  paragraph  (c)  of
subdivision  five  of  this  section,  and shall be available only where
there is a firm commitment by a company to carry out a related  business
development  to  create  or  retain substantial permanent private-sector
jobs.
(c) Assistance for business infrastructure projects shall  not  exceed
forty-nine  percent  of  the  total  project cost or seven hundred fifty
thousand dollars, whichever is less. Loans for such projects shall be at
interest rates determined by the corporation, that are necessary to make
the project feasible.
(d) No more than fifty percent of funds available from the corporation
for any infrastructure project not located in an  empire  zone,  and  no

more  than sixty percent of the funds available from the corporation for
any infrastructure project located in an empire zone shall be  disbursed
as a grant.
(7)  Infrastructure investment projects. Notwithstanding paragraph (b)
of  subdivision  two  of  this  section,  grants  may  be  made  by  the
corporation for up to four hundred thousand dollars or eighty percent of
the total project cost, whichever is less, for infrastructure investment
projects which:
(a)  Meet  highly  distressed  area  criteria  as  defined  in article
eighteen-b of the general municipal law;
(b) Are part of an economic  development  or  urban  renewal  plan  to
attract, retain or permit the expansion of an industrial, manufacturing,
research   and  development,  high-technology,  tourism,  service,  food
processing or distribution company; and
(c) Are located in areas that are zoned industrial or commercial.
(8)  Infrastructure  planning  projects.  The  corporation  may   make
infrastructure  planning  project  grants  in  an  amount  not to exceed
twenty-five  thousand  dollars  or  fifty  percent  of  project   costs,
whichever is less, for the purpose of conducting preliminary planning on
business   infrastructure   development  and  infrastructure  investment
projects that meet the criteria set forth in subdivisions six and  seven
of this section.
(9)  Tourism  destination  projects.  (a)  The  corporation  may  make
business development and business infrastructure loans  and  grants  for
tourism destination projects. Such projects must:
(i)  involve  the development of a recreational, educational, cultural
or historical facility;
(ii)  significantly  contribute  to  the  development  of  a   tourism
destination; and
(iii)  either  (A)  involve  construction  of a new facility that will
encourage investment in an area  where  a  shortage  of  tourism-related
facilities,  attractions  or  services  has deterred business growth and
where  the  proposed  facility  would  significantly  increase   overall
business  activity  and  the  marketability of the location as a tourism
destination; or (B) improve an existing  recreational,  educational,  or
cultural  or  historical  facility  where the proposed improvement would
significantly increase overall business activity and  the  marketability
of the location as a tourism destination.
(b)  The  corporation may make grants involving the regional marketing
of tourism destinations, including commercial tourism destination areas,
where an increase of visitors to  such  areas  will  contribute  to  the
stability and economic viability of the area.
(c)  Preference  shall  be given to tourism destination projects which
attract a  significant  number  of  visitors  from  outside  the  state,
provided,  however,  that  funding  priority  shall  be given to tourism
destination projects in distressed areas of the state.
(d) No assistance shall be provided pursuant to  this  subdivision  to
finance  a  tourism  destination  project consisting solely of overnight
lodging facilities or retail businesses. Provided, however, that nothing
contained  herein  shall  prohibit  the   corporation   from   providing
assistance   to  a  tourism  destination  project  which  includes  such
facilities or businesses.
(10) Economic  development  assistance  grants.  (a)  The  corporation
shall,  within  available  appropriations,  award  grants  or enter into
contracts for services to eligible entities  and  organizations  as  set
forth  in  this  subdivision  on  a competitive basis and in response to
requests for proposals issued  by  the  corporation.  Grants  shall  not
exceed  one  hundred thousand dollars per project. An applicant shall be

permitted to apply for support in more  than  one  project  area  listed
under paragraph (c) of this subdivision, provided, however, that the sum
total  of the grant received under this subdivision by any one applicant
for  more  than  one  project  approved  under  paragraph  (c)  of  this
subdivision shall not exceed two  hundred  fifty  thousand  dollars.  No
application  for industrial effectiveness on global export and marketing
assistance shall be approved by  the  corporation  unless  it  is  first
approved by the department of economic development.
(b) The corporation shall enter into no more than one contract or make
more  than  one  grant  per  year per application under this subdivision
regardless of the number of projects for which an applicant has  applied
and for which funding has been approved. In the case of applications for
multiple projects to be conducted by a single applicant, the corporation
may,  at  its  discretion,  provide a grant or enter into a contract for
services with the applicant for some or all of the projects for which an
applicant has applied.
(c) Not-for-profit corporations, business  improvement  districts  and
regional  and  community  development organizations shall be eligible to
apply for support  under  this  subdivision  to  operate  a  program  or
programs  of  business  and  economic development services to stabilize,
retain or revitalize existing businesses, and to assist  small  and  new
businesses,  including,  but  not  limited  to  assistance to individual
businesses or business sectors in  project  areas,  including,  but  not
limited to:
(i) the preparation of strategic plans for the economic development of
the region;
(ii) analysis of industrial sectors;
(iii) productivity assistance to mature industries;
(iv) assistance in marketing and promoting regional business clusters;
(v) export assistance;
(vi)   management   and  procurement  assistance  to  small  business,
including minority- and women-owned businesses;
(vii) regional marketing of state  economic  development  programs  to
areas underserved in those programs;
(viii)   assistance   in   the  training  of  community  and  economic
development staff to assist communities to build capacity to  engage  in
economic development;
(ix)   assistance   to   expand  the  capacity  of  existing  entities
administering  minority  and  women  revolving  loan  funds  to  deliver
services;
(x)  feasibility studies for the establishment of business improvement
districts and for initial eligible organizational costs; and
(xi) grants for the establishment and operation of  neighborhood-based
small business service centers.
(d)  In  awarding  grants  or  contracts pursuant to this subdivision,
preference shall be given to programs that:
(i) are located in distressed areas;
(ii) meet a substantial regional need;
(iii) complement  local  programs  or  provide  services  not  readily
available from units of local government or the private sector;
(iv) provide a local match; or
(v) foster small business and minority business development.
(11)  Skills  training  projects.  (a)  Funds  may  be  available  for
expenditure related to the provision of skills training assistance  when
utilized  in  conjunction with other public or private development funds
for the purposes of the prevention of worker dislocation or the creation
of new employment opportunities.
(b) To the extent that  training  expenditures  involve  classroom  or
on-the-job training, all funding by the corporation shall be in the form
of grants or contracts with employers matching fifty percent of the cost
of training.
(c) Allowable training expenditures may include expenses for classroom
instruction and on-the-job training.
(d) No skills training assistance shall be provided by the corporation
unless and until the department of economic development has reviewed and
approved each project.
(e)  For  those  projects  funded  pursuant  to the provisions of this
subdivision, the corporation shall submit to the governor,  the  speaker
of the assembly, the temporary president of the senate, and the chair of
the  commission  on skills development and vocational education a report
of the training assistance provided by such projects to be submitted not
later than September first of each year. Such report shall include,  but
not  be  limited  to,  a  description of the training activity provided,
evidence of linkages  with  other  publicly  funded  training  programs,
specification  of  outcomes achieved including number of job placements,
jobs retained, jobs created, or a measure of  productivity  improvement,
the  types  of  businesses served by size and sector, and funds provided
for the construction/renovation of facilities or purchase  of  equipment
for training purposes.
(12) Child care assistance projects. (a) The corporation shall provide
financing  for  child  care  assistance  projects for the establishment,
expansion and development of not-for-profit child day care centers which
serve the  needs  of  small  and  medium-sized  commercial,  industrial,
service   and   other   small   and   medium-sized  businesses,  and  of
health-related businesses and  degree-granting  institutions  of  higher
education. Such financing may consist of grants for the establishment of
licensed, not-for-profit child day care centers developed in conjunction
with  small  and  medium-sized businesses, health-related businesses and
degree-granting institutions of higher education. Such grants shall  not
exceed  forty percent of the total project cost, may be in amounts up to
one hundred thousand  dollars  and  may  be  used  for  general  project
development costs, including, but not limited to:
(i) studies to assess the feasibility of, or preliminary planning for,
the  development of child day care centers sponsored by a not-for-profit
provider or a consortia of firms;
(ii) the acquisition, design, construction, improvement or  renovation
of the child day care center; and
(iii)  the  purchase  of permanently installed machinery and equipment
necessary to establish or expand a child day care center.
(b) Loans for costs associated with the development  or  expansion  of
child  day  care  centers  to a not-for-profit child care provider, or a
small  or  medium-sized   business,   consortia   of   such   firms   or
health-related   business   or  degree-granting  institution  of  higher
education that has contracted with a not-for-profit child care  provider
to supply child care services, provided, however, that:
(i)  such loans may be used for the acquisition, design, construction,
improvement or renovation of a child day care center at the project site
and/or for the purchase of permanently installed machinery and equipment
in connection therewith, or for the provision of working capital to such
center; and
(ii) the corporation shall determine the terms and interest  rates  of
such  loans, except that no loan shall exceed fifty percent of the total
project cost, or two hundred fifty thousand dollars, whichever is  less,
provided  that  the  total  amount  given  to  any individual child care
project shall not exceed two hundred fifty thousand dollars.
(c) Financing for child care assistance projects  authorized  pursuant
to  this  subdivision,  shall  only  be made upon a determination by the
corporation that such center will improve or maintain  the  productivity
of the sponsoring company or companies. Such loans and grants shall only
be  made  for  child care centers where adequate day care facilities are
not available for  employees  of  businesses  within  the  area  of  the
proposed center. Such centers shall:
(i)   demonstrate   an   ability   to  obtain,  from  the  appropriate
governmental agencies, all necessary approvals and licenses required  to
operate the center; and
(ii)  demonstrate  an  ability  to  prevent  access by children to any
equipment in such centers which could be injurious to  their  health  or
safety.
(d)  The  corporation  shall  work closely with the New York state job
development  authority,  the  New  York  state  department  of  economic
development,  the  New  York  state department of social services, child
care  resource  and  referral  centers,  and  other   sources   offering
assistance  for  child care in the state in order to assure coordination
of services.
(13) Regional loan fund account grants. Assistance from  this  program
may  be  provided  for  grants of up to five hundred thousand dollars to
capitalize, and up to two  hundred  thousand  dollars  to  recapitalize,
regional  revolving  loan  trust  fund  accounts established pursuant to
section sixteen-a of this act and up to two hundred thousand dollars  to
recapitalize  minority  and  women  revolving  loan  trust fund accounts
established pursuant to section sixteen-c of this act;  and  up  to  two
hundred  thousand  dollars  to provide the local match for appropriately
federally-financed community-based loan funds.
(14) Determination of economic distress.  (a)  The  corporation  shall
develop  and  consider criteria for determining economic distress within
the areas of the state. Factors to be considered in determining economic
distress shall include:
(i) unemployment rate;
(ii) rate of employment change;
(iii) percentages and numbers of low-income persons;
(iv) per capita income and per capita real property wealth; and
(v) such  other  indicators  of  distress  as  the  corporation  shall
determine.
(b)   Economically  distressed  areas  shall  also  include  parts  of
municipalities otherwise not qualifying, which meet unemployment, income
and other criteria established by the corporation.
(15) Application. (a) The corporation shall develop and use a standard
project application  form.  Project  applications  shall  be  completed,
reviewed  and  evaluated  by  the regional economic development councils
established  pursuant  to  this   section,   pursuant   to   eligibility
requirements  and  criteria  promulgated  by the corporation pursuant to
this section. Such applications shall be submitted  to  the  corporation
with recommendations for the project ranked in priority order; provided,
however,  that  an  applicant  may  make  an application directly to the
corporation for approval. Upon such direct application,  the  applicable
regional  economic  development council shall review the application and
shall make a recommendation  within  twenty  days  of  receipt  of  such
application. The corporation may act on any such application twenty days
after the receipt of such application by the regional council.
(b)  The  corporation  shall expedite the processing of approved loans
and grant awards with the objectives of simplifying  the  administrative
process and making prompt and timely payments to recipients and simplify
procedures by which approved applications are processed.
(16)  Regional economic development assistance revolving loan account.
Notwithstanding any provisions of law to the contrary,  the  corporation
shall  establish  within  its  treasury  a regional economic development
assistance revolving loan account,  shall  pay  into  such  account  any
moneys  which  may be made available to the corporation for this purpose
from any source including, but not limited to,  moneys  appropriated  by
the  state and any income earned by, or increment to, the account due to
the investment thereof, or any repayment of principal  and  interest  on
loans  made  by the corporation for projects authorized pursuant to this
section. The amounts deposited  in  the  regional  economic  development
assistance revolving loan account may not be interchanged with any other
account.  All  loans  disbursed  by the corporation shall be repaid into
such account and such repayments shall be available to  the  corporation
for relending and up to one hundred twenty-five thousand dollars of such
repayments  shall  be  available  for  the  co-location  of staff of the
corporation in the  regional  offices  of  the  department  of  economic
development,  expediting  project  disbursement  or  outreach  in highly
distressed areas.
(17) Approval cycle. The corporation shall approve  project  loans  or
grants made under this section on at least a four-month cycle.
(18) Priority. In approving loans or grants authorized pursuant to the
provisions   of  this  section,  the  corporation  shall  give  priority
consideration to whether a project is located in  an  area  of  economic
distress.  Other  factors  to  be  considered  by  the corporation shall
include:
(a) The number of jobs created or retained;
(b) The number of jobs created for persons eligible for benefits under
the provisions of the job training  partnership  act  (P.L.  97-3400)(29
U.S.C.A. § 801 et seq.);
(c)  The  priority  accorded  the  proposed  project  by  the regional
economic development council;
(d) The participation of minority- and women-owned businesses;
(e) The impact of the project on the employment and economic condition
of the community;
(f) The cost per job created or retained based on total project cost;
(g) The amount of private investment leveraged;
(h) The level of local public support; and
(i) The likelihood of accomplishing the project in a timely fashion.
In the event that the corporation does not follow the priorities of  a
regional  economic  development  council,  it  shall  make a finding, in
writing, as to why the council priority was not followed.
(19) Preference. For any positions opened  as  a  result  of  business
development  project  loans,  entities  assisted  shall  first  consider
persons eligible to participate in federal job training partnership  act
programs  (P.L.  97-3400)  (29  U.S.C.A.  §801  et.  seq.)  who shall be
referred to the business by administrative entities of service  delivery
areas  created  pursuant  to such act by the job service division of the
department of labor.
(20) Regional economic development  council.  Beginning  April  first,
nineteen  hundred  ninety-five,  there  shall be established within each
economic development region  of  the  state,  pursuant  to  section  two
hundred  thirty  of  the  economic  development law, a regional economic
development council.
(a) Appointments to a regional economic development council  shall  be
made according to the following provisions:
(i)  Except  as  provided  in subparagraph (iii) of this paragraph, in
regions composed of two or more counties, the chief executive officer of
each county within such region shall each appoint one representative  to

serve  on  the  regional  economic development council; and the mayor or
other chief executive of each city within the  region  whose  population
exceeds  fifty  thousand,  shall each appoint one member to serve on the
regional  economic  development council; except that for regions that do
not contain a city of at least fifty thousand inhabitants, the mayor  or
other  chief  executive  of the municipality with the largest population
shall make such appointment.
(ii) In the case of regions composed of two  or  fewer  counties,  the
chief  executive  officer  of  each  county  within  a region shall each
appoint  three  representatives  to  serve  on  the  regional   economic
development  council;  and the mayor or other chief executive of the two
largest towns within each county shall each appoint one member to  serve
on the regional economic development council.
(iii)  In  the  case  of cities of one million or more constituting an
economic development region, six appointments to the  regional  economic
development council shall be made by the mayor, and one appointment each
shall  be  made by the chief executive officer of any county within such
city, who shall represent the county.
(iv) The governor shall make a number of appointments in  each  region
equal  to the total number of appointments made pursuant to subparagraph
(i), (ii) or (iii) of this paragraph, as appropriate; provided  however,
that  of the appointments made by the governor in each region, one shall
be the director of the regional office of  the  department  of  economic
development;  one  shall  be the regional representative of the New York
state job development authority, and one  shall  be  a  regional  office
representative  of  the  corporation.  In  addition,  the governor shall
appoint the chair of each regional economic development council.
(b) Each individual  appointed  to  a  regional  economic  development
council  shall  serve  for  a  term of four years but shall serve for no
longer than two consecutive terms.
(c) The chair of a regional economic development council  shall  serve
as chair for a single term of four years only.
(d)  Representatives appointed pursuant to this section may be removed
for cause by the appointing authority.
(e) Any vacancy on a regional economic development  council  shall  be
filled  for  the  unexpired  term  in  the  same  manner as the original
appointment.
* (f) Each regional economic development council awardee  may  certify
in  writing  to  such  regional  economic  development council that they
maintain  internship   opportunities,   along   with   the   number   of
opportunities, a description of the work the interns will engage in, and
descriptions of any supplementary programming offered to the interns.
* NB Effective July 19, 2024
(21)  Reports.  The  chairman  of  the corporation shall submit to the
director of the budget, the speaker of the assembly  and  the  temporary
president  of  the  senate  an  evaluation  of  the effectiveness of the
program prepared by  an  entity  independent  of  the  corporation.  The
corporation  shall  select  the  program evaluator through a request for
proposal process. Such evaluation shall determine whether the assistance
provided has enhanced the economic conditions of assisted businesses  or
projects,  and  shall  make recommendations for improvements which would
make the program more effective. Such evaluation shall be  submitted  by
September first, nineteen hundred ninety-six.
(22)   Co-location   of   services.   The   commissioner  of  economic
development, in  consultation  with  the  New  York  state  science  and
technology foundation, the New York state urban development corporation,
the  New  York  state job development authority, the state university of
New York and the city university of New York shall develop and implement

a plan and schedule for the co-location of  services  provided  by  such
agencies  in each economic development region throughout the state. Such
plan and schedule shall provide that  at  least  one  employee  of  each
agency  providing  such  services  shall  be  located at each co-located
regional office in New York state on at least a regularly scheduled part
time basis. The commissioner of economic development shall report to the
temporary president of the senate, the  speaker  of  the  assembly,  the
chairpersons  of  the  fiscal committees of the senate and assembly, and
the governor on the plan and schedule required pursuant to this  act  by
December thirty-first, nineteen hundred ninety-four.
§  16-f.  Bonding  guarantee  assistance program. (1) Program created.
There is hereby created a state bonding guarantee assistance program  to
enable  small  businesses,  and  minority-owned and women-owned business
enterprises, certified  as  a  minority-owned  or  women-owned  business
enterprise  pursuant  to article fifteen-A of the executive law, to meet
payment and/or performance bonding requirements by providing  additional
financial  backing needed to induce a surety company to issue a bond for
construction  projects,  including  but  not  limited   to,   government
sponsored, transportation related construction projects. For purposes of
this  section,  the  term  small business shall have the same meaning as
defined in section one hundred thirty-one of  the  economic  development
law.   Such   program   shall  give  preference  to  minority-owned  and
women-owned business enterprises and shall:
(a) Make available funds to surety companies providing bonds to  small
businesses and minority- owned or women-owned business enterprises in an
amount  equal  to  a  percentage not to exceed fifty percent of the face
value of bonds issued by the surety.
(b) Provide technical assistance in  completing  bonding  applications
for   small   businesses  and  minority-owned  or  women-owned  business
enterprises seeking to become eligible for bonding  in  preparation  for
bidding  on  construction  projects,  including  transportation  related
projects. The corporation shall provide and may refer such businesses to
the department of economic development for technical assistance as  such
businesses may need, including but not limited to:
(i)  a  review  of  the  applicants'  market  and business competitive
strategy;
(ii)  consultation  and  review  of  the   development   and   planned
implementation of a working capital budget;
(iii)  assistance  with  applications  for the receipt of funding from
other financial sources and providing  referrals  to  other  appropriate
public and private sources of financing; and
(iv)  assistance  from  the  regional  offices  of  the  department of
economic  development,  pursuant  to  article  eleven  of  the  economic
development law, and the entrepreneurial assistance program, pursuant to
article  nine  of  such  law, and any other such program receiving state
funds from this act or the department of  economic  development  or  any
other  state  agency that is intended to provide technical assistance to
small businesses  and  minority-owned  and  women-owned  small  business
enterprises.
(2)  Criteria  and  regulations.  (a)  The  corporation  shall by rule
establish criteria for such program, such criteria to  include  detailed
provisions for eligibility.
(b)   The  corporation  shall  promulgate  rules  and  regulations  to
effectuate the purposes of this section which shall be approved  by  the
director of the budget.
(3) Funds. Funds for this program shall consist of such amounts as may
be  appropriated,  any  repayment  of  funds  made  available under this

program, and any interest earned by the corporation from the  investment
of moneys from this program.
(4)  Nonapplication  of  certain provisions. The provisions of section
ten and subdivision two of section sixteen of this act shall  not  apply
to assistance provided under this program.
§  16-g.  Child  care facilities construction program. 1. Definitions.
For the purposes of this section:
(a) "Child care facilities construction project" shall mean a  project
for   the   establishment,   expansion,   and  development  of  licensed
not-for-profit child day care centers which are intended  to  serve  the
needs of low-income working families or economically distressed areas or
highly  distressed  communities. The project shall be used as a licensed
child day care center for a period of at least ten years with  at  least
one-quarter  of  the  available day care placements offered to the local
department of social services or set  aside  for  persons  eligible  for
low-income day care subsidies.
(b)  "Economically  distressed  areas"  shall have the same meaning as
provided for in section 16-d of this act.
(c) "Highly distressed" shall have the same meaning as provided for in
section 16-d of this act.
(d) "Not-for-profit corporation" shall mean  a  corporation  organized
under the provisions of the not-for-profit corporation law.
2.  The  corporation shall, from any appropriations made available for
this purpose, establish a child  care  facilities  construction  program
which shall offer the following assistance:
(a)  Child care construction grants pursuant to paragraphs (a) and (b)
of subdivision 3 of this section.
(b) Child  care  construction  revolving  loans  and  loan  guarantees
pursuant to paragraphs (c) and (d) of subdivision 3 of this section.
3.  To  the  extent  that  monies  are appropriated for the child care
facilities construction program, the corporation shall provide financing
for child care facilities construction projects for  the  establishment,
expansion and development of not-for-profit child day care centers which
are  intended  to  serve  the  needs  of  low-income working families or
economically distressed areas  or  highly  distressed  communities.  The
corporation,   in   consultation   with   the   department  of  economic
development, shall develop a joint request  for  applications  with  the
department  of  social  services soliciting potential applicants seeking
assistance for the development of  licensed,  not-for-profit  child  day
care  centers.  In  determining  award recipients, the corporation shall
consider, among  other  factors,  the  department  of  social  services'
grouped  rankings  of  the applications. Such financing shall consist of
grants, revolving loans  and  loan  guarantees  for  the  establishment,
expansion,  and  development  of licensed, not-for-profit child day care
centers in accordance with section 410-ccc of the  social  services  law
and this section.
(a)  Grants  shall  be  used  for  general  project development costs,
including, but not limited to:
(i) the acquisition, design, construction, improvement  or  renovation
of the site; and
(ii) the purchase of necessary equipment.
(b)  For  the  purposes  of  this  subdivision grants shall not exceed
eighty  percent  of  the  total  project  cost  in   highly   distressed
communities;  shall  not  exceed sixty-five percent of the total project
cost in economically  distressed  areas;  and  shall  not  exceed  fifty
percent of the total project cost in non-economically distressed areas.
(c)  Child  care  construction revolving loan and loan guarantees. The
corporation shall provide revolving loans and loan  guarantees  for  the

establishment  of  licensed, not-for-profit child day care centers. Such
revolving loans and loan guarantees shall  be  for  construction  costs,
including,  but  not limited to the design, construction, improvement or
renovation  of  a  child  day  care  center,  and  may  include  interim
financing.
(d) Child care construction revolving loan and  loan  guarantee  fund.
For  the purposes of this subdivision, the corporation shall establish a
child care construction revolving loan and loan guarantee fund  account.
The  corporation  shall  determine  the terms and interest rates of such
loans, except that no loan shall exceed  eighty  percent  of  the  total
project cost in highly distressed communities; sixty-five percent of the
total  project  cost in economically distressed areas; and fifty percent
of the total project  cost  in  non-economically  distressed  areas.  In
instances  where  an  otherwise  qualified  applicant  lacks equity in a
project, equity participation may include  any  commitment  for  grants.
Payments consisting of the repayment of the principal amount of the loan
and  interest  shall be deposited by the corporation into the child care
construction revolving loan fund account from which the loan was made.
4.  Financing  for  child  care   facilities   construction   projects
authorized  pursuant  to  this  subdivision,  shall  only be made upon a
determination by the corporation, in consultation with the department of
economic development, and the department of social services that such  a
center  will  increase  supply  and  access  to  day care services. Such
revolving loans, loan guarantees and grants shall only be made for child
care centers where there is an insufficient supply of  child  day  care.
Such  centers  shall demonstrate the potential to obtain, from the local
department  of  social  services  and  other  appropriate   governmental
agencies, all necessary approvals, licenses, and other supports required
to operate the center.
5.  In  addition to the department of social services, the corporation
shall work closely with the job development authority, the department of
economic development, child care resource and referral  programs,  local
development  corporations,  neighborhood  preservation  companies, rural
preservation companies, and other sources offering assistance for  child
care in the state in order to assure coordination of services.
§  16-h.  The  JOBS  Now  program  is hereby created. 1. Funds of this
program, within available appropriations,  shall  be  available  to  any
regional  partnership,  as  provided  in  section  3154  of  the  public
authorities law, eligible business expansion or attraction project:  (a)
Job creation grants. Proceeds from a job creation grant shall be used by
an  eligible  business  to  pay any tax liability resulting from any tax
imposed by the state or a local government that the  business  owes  for
any  taxable  period  beginning  on  or  after the date in which the job
creation grant was awarded. A job creation grant shall equal a  portion,
as  determined  by  the  urban  development corporation, of the New York
state income tax that is withheld on the employees that were hired as  a
result  of the expansion or attraction project not to exceed one million
five hundred thousand dollars;
(b) Worker training grants. Worker training grants, that are completed
pursuant to eligible expansion  and  attraction  projects,  may  receive
partial  or  total  reimbursement  of  the  costs  associated  with such
programs through a worker  training  grant  if  such  training  programs
include,   but  are  not  limited  to  skills  training  and  upgrading,
productivity enhancement and total product/service quality improvements;
(c) Capital loans and grants. Capital loans and grants may be  awarded
if  the  proceeds  are used for the acquisition or improvements of land,
infrastructure and  buildings  and  the  acquisition  of  machinery  and
equipment;
(d) Interest subsidy grants. Interest subsidy grants may be awarded if
the  proceeds of such grants are used to offset debt service costs which
are associated with loans supplied to the business by a private  lending
institution; and
(e)  Working  capital  loan and loan guarantees. Working capital loans
may be awarded  if  the  proceeds  are  used  to  cover  capital-related
expenses  such  as,  but not limited to, accounts receivable, inventory,
and other expenses required to upgrade and reconfigure  the  competitive
position of the project applicant.
2.  To  be  eligible  for a loan or grant from the JOBS Now program, a
regional  partnership,  as  provided  in  section  3154  of  the  public
authorities  law,  or  a  business  expansion or attraction project must
result in the creation of at least 100 new, permanent, full-time private
sector jobs. Not more than twenty-five percent of funds appropriated for
this program shall be allocated for projects that create less  than  300
jobs.  At  least  seventy-five  percent  of  funds appropriated for this
program shall be allocated to projects that create at  least  300  jobs.
Provided,  however,  a regional partnership, as provided in section 3154
of the public authorities law, shall be  able  to  aggregate  the  total
number of jobs created among more than one eligible business in order to
meet  the  job  creation  amounts in this subdivision. Provided further,
however,  that  such  aggregation  shall  be  within  similar   industry
clusters.
3.  Applications  for  assistance  pursuant  to  this section shall be
reviewed and evaluated in consultation with local  government  officials
and  regional  economic  development  offices  pursuant  to  eligibility
requirements and criteria set forth in rules and regulations promulgated
by the corporation. The corporation shall develop  and  use  a  standard
application project form.
4.  The corporation shall, on or before March 1, 1997, submit a report
to the governor, the temporary president of the senate and  the  speaker
of  the  assembly on the operation and accomplishments of the assistance
provided pursuant to this section, including  a  complete  inventory  of
projects financed pursuant to this section.
* §  16-i.  The  empire state economic development fund. 1. The empire
state economic development fund is hereby created.  The  corporation  is
authorized,  within  available  appropriations,  to  provide  financial,
technical or other assistance from such  fund  for  the  following:  (a)
Loans,  loan  guarantees and grants including interest subsidy grants to
manufacturing and non-retail service firms, for headquarters  facilities
of firms engaged generally in retail industries, retail firms located in
distressed  areas and to other businesses, for the purpose of developing
recreational, cultural, or historical  facilities  that  are  likely  to
attract  significant  numbers  of  visitors.  Loans, loan guarantees and
interest subsidy  grants  may  be  used  to  finance  new  construction,
renovation  or  leasehold  improvements  and  the  acquisition  of land,
buildings, machinery and equipment. The proceeds  of  such  loans,  loan
guarantees  and  interest  subsidy  grants  may  also be used to finance
working capital;
(b) Loans, loan guarantees,  and  grants  including  interest  subsidy
grants   may  be  provided  to  municipalities,  industrial  development
agencies, not-for-profit corporations or local development  corporations
for  the  purpose of developing federal facility sites, urban industrial
sites,  industrial  parks  and  incubator  buildings;  or  to  undertake
preliminary planning relating thereto;
(c)   Grants  for  the  purpose  of  creating  or  retaining  jobs  or
preventing, reducing  or  eliminating  unemployment  or  underemployment
including,  but  not limited to, productivity assessments, export market

development plans and other projects  to  promote  international  trade;
skills training assistance including classroom instruction or on the job
training;  and  programs  to  assist economically distressed regions and
communities  to  identify  new  business  opportunities,  plan  for  new
enterprise development and manage economic development projects;
(d)  Loans,  loan  guarantees,  interest  subsidies  and   grants   to
businesses,  municipalities,  industrial  development agencies and local
and regional economic development  corporations  for  projects  for  the
purpose   of  attracting,  retaining  or  permitting  the  expansion  of
industrial, manufacturing, commercial, research  and  development,  high
technology,  tourism,  agricultural or non-retail service businesses and
not-for-profit organizations which shall include, but not be limited  to
basic  systems  and  facilities  on  public and privately owned property
including drainage systems,  sewer  systems,  access  roads,  sidewalks,
docks,  wharves,  water supply systems, and site clearance, preparation,
improvements  and  demolition.  In  addition,  grants  for   preliminary
planning  of  projects  eligible to apply for financing pursuant to this
paragraph may be provided;
(e) Grants to municipalities, not-for-profit  corporations  and  local
and  regional  economic  development  organizations  seeking to attract,
stabilize, retain or revitalize existing businesses, and to assist small
and new businesses for activities including, but  not  limited  to,  the
preparation   of   strategic   plans  for  local  or  regional  economic
development, the analysis of business sectors, marketing  and  promoting
regional business clusters, and feasibility studies;
(f)  Loans, loan guarantees, interest subsidy grants and direct grants
for feasibility studies,  surveys  and  reports,  architectural  design,
studies,  and  other redevelopment work for non-residential improvements
to commercial buildings, commercial strips, downtown areas  or  business
districts;
(g)  Assistance  to  local  or  regional  organizations  to facilitate
financing for small- and medium-sized business, including minority-  and
women-owned  business  enterprises  through flexible financing programs,
including, but not limited to, loan  loss  reserve  and  revolving  loan
programs,  working  capital  loans,  working capital loan guarantees, or
other flexible financing programs that leverage traditional financing;
(h) Assistance to eligible entities and organizations as set forth  in
section  16-l  of  this  act  to  support community economic development
programs and activities, including value-added  small  business  growth,
agricultural,  agribusiness  and forest products and those projects that
promote the family farm, increase or retain employment opportunities and
otherwise contribute to the revitalization of local  rural  areas  which
are economically distressed.
2.  Applications  for  assistance  pursuant  to  this section shall be
reviewed and evaluated in cooperation with regional economic development
offices pursuant to eligibility requirements and criteria set  forth  in
rules  and  regulations  promulgated  by  the  corporation.  Approval of
project applications shall be made only  upon  a  determination  by  the
corporation:
(a) that the proposed project would promote the economic health of New
York  state  by  facilitating the creation or retention of jobs or would
increase business activity within a municipality or region of the  state
or  would  enhance  or help to maintain the economic viability of family
farms;
(b) that the project would be unlikely to take place in New York state
without the requested assistance.
(c) that the project is reasonably likely  to  accomplish  its  stated
objectives and that the likely benefits of the project exceed costs; and
(d)  the  project  is  undertaken in accordance with the memorandum of
understanding executed in accordance with this section.
3.  The  provisions  of this section shall expire, notwithstanding any
inconsistent provision of subdivision 4 of section 469 of chapter 309 of
the laws of 1996 or of any other law,  upon  the  effective  date  of  a
chapter  of  the laws of 2000 which appropriates funds for the principal
support of the urban  development  corporation  for  the  2000-01  state
fiscal year.
* NB  Expired  upon  appropriation of funds to UDC for 2000--01 fiscal
year notwithstanding being repealed March 31, 1997 by chap.  309/1996  §
469 sub. 4.
See ch. 413/99 Pt. M
§  16-j.  Strategic  training  alliance  program.  1. Program created.
Pursuant to this section and article 24-A of  the  labor  law  there  is
hereby  established within the corporation and the department of labor a
strategic training alliance program to  identify  and  address  employer
demands for skilled workers. The corporation and the department of labor
may  cooperate  with  the  department of economic development, the state
university of New York, the city university of New York, and  the  state
education  department, in providing support within amounts available for
the program for training activities by an eligible  applicant  which  is
defined  as  an  employer  or  an  employer  in conjunction with a labor
organization,  a  strategic  alliance  or  network  or  association   of
employers  with  common problems or concerns, a private industry council
established pursuant to the federal job training partnership  act  (P.L.
97-300)  or  one  or  more local workforce investment boards established
pursuant  to  the  federal  workforce  investment  act  (P.L.   105-300)
representing a strategic alliance.
2.  Project  plans.  (a)  Project  plans  shall  be  submitted  to the
corporation or the department of labor by  applicants.  The  corporation
and  the  department  of  labor  shall,  upon  receipt of project plans,
jointly review such plans in order to assure that they are  approved  or
disapproved  within  the  time limits set forth in paragraph (c) of this
subdivision.
(b) Plans submitted pursuant to this article shall include:
(i) documentation of the need for such training;
(ii) the type of training and the number of individuals to be trained;
(iii) a commitment of a cash or in-kind contribution to  the  cost  of
the project;
(iv)  a  commitment  to first consider individuals who are unemployed,
dislocated, or economically disadvantaged for  employment  in  positions
created as a result of training;
(v)  the  identification  of  an  eligible  training provider which is
defined as a community college, agricultural and technical  college,  an
institution  of  higher education, a local education agency, a community
based organization or a strategic alliance;
(vi) the identification of specific projects to be assisted; and,
(vii) a description of technologies to  be  used  to  disseminate  the
training to participating employers.
(c)  The corporation and the department of labor shall jointly approve
or disapprove project plans within thirty days of receipt of such plans.
3. Assistance. (a) Assistance provided by the corporation to  eligible
applicants  pursuant  to  the joint approval involving the department of
labor set forth in this article shall be used for the costs of classroom
training, curriculum development, and training materials associated with
on the job training, skills  upgrading,  skills  retraining,  and  basic
skills training; and
(b) The corporation and the department of labor shall ensure that:
(i)  not  less  than  twenty  percent of the program funds are used in
support of projects that assist small businesses as defined  in  section
one hundred thirty-one of the economic development law; and
(ii) not less than twenty percent of program funds are used in support
of  projects that assist strategic alliances or networks or associations
of employers with common problems or concerns.
(c) The corporation and the department of  labor  may  within  amounts
available  for  the  program  provide  additional funds for regional and
statewide initiatives that lead to the development and implementation of
an electronically supported training and workforce education system.
4. Report and evaluation. (a) The corporation and  the  department  of
labor shall report to the legislature annually identifying the employers
or  alliances  receiving  training  assistance,  the  type  of  training
provided,  and  the  number  of  individuals  trained  and  newly  hired
including   those   who   were  previously  unemployed  or  economically
disadvantaged.
(b) The corporation and the department of labor shall also provide for
an independent evaluation of the program on or before June 1, 2002,  and
every  three years after. The cost of such evaluation shall be deemed to
be an eligible expense of the New York state strategic training alliance
program.
§ 16-k. Capital access program. 1. Definitions. For  the  purposes  of
this section:
(a)  "Financial  institution",  means any bank, trust company, savings
bank, savings and loan association or cooperative bank chartered by  the
state  or  any  national  banking  association, federal savings and loan
association  or  federal  savings  bank  or  any  community  development
financial institution or community-based lending organization; provided,
however, that the financial institution has its principal office located
in the state.
(b)  "Participating  financial  institution"  shall mean any financial
institution participating in the program established by this section.
(c) "Small business" shall have the  same  meaning  as  set  forth  in
section  131  of  the  economic  development law, whose primary place of
business is in New York state.
2. (a) The corporation, or its agent, shall establish a capital access
program to provide a loan loss reserve to assist small  businesses  that
otherwise find it difficult to obtain regular bank financing.
(b)(i)  Assistance  under the capital access program shall be provided
for a capital access program under which the corporation  or  its  agent
shall  be  authorized  to assist small businesses that otherwise find it
difficult  to  obtain  regular  or  sufficient  bank   financing.   Such
assistance  shall  take  the  form of deposits by the corporation or its
agent in the reserve funds in participating  financial  institutions  to
fund loan loss reserves for loans made to such small businesses.
(ii)  Any  financial  institution  desiring  to become a participating
financial institution shall execute an agreement in  such  form  as  the
corporation  or  its  agent may prescribe, which agreement shall contain
the terms and provisions set forth in paragraph (c) of this  subdivision
and  such other terms and provisions as the corporation or its agent may
deem necessary or appropriate.
(c) A participating financial institution  originating  a  loan  to  a
small business pursuant to this section shall:
(i)  provide  a plan to the corporation or its agent for the marketing
of the capital access program to small businesses,  including  those  in
highly  distressed  areas  and  to minority- and women-owned businesses,
with  appropriate  lending  objectives  identified  by   the   financial
institution for such areas and businesses;
(ii) disperse funds for the purposes of expansion, facility/technology
upgrading, start-up and working capital;
(iii)  not  disperse  funds  which  exceed an amount greater than five
hundred thousand dollars;
(iv) set aside an amount, specified or agreed to by the corporation or
its agent, from both the participating financial  organization  and  the
small  business, not less than three percent nor more than seven percent
of the principal amount of the loan, whereby the amount  contributed  by
the  small  business  does  not exceed fifty percent of the total amount
contributed by the small business and the financial institution, into  a
loan  loss  reserve  which the institution shall maintain, applicable to
all such loans by said institution to small businesses pursuant to  this
section; and
(v) certify to the corporation or its agent in such a fashion and with
such  supporting  information  as  the  corporation  or  its agent shall
prescribe, that it has made such loan and has set aside its contribution
and the contribution of the small business.
(d) The corporation or its agent shall  after  such  certification  as
provided  in  subparagraph  (v)  of  paragraph  (c) of this subdivision,
transfer to the participating financial institution an amount  equal  to
the   total   of   the  contributions  of  the  participating  financial
institution and the small business or such additional amount up  to  one
hundred  fifty  percent  of  such  contributions  as  determined  by the
corporation or its agent. The participating financial institution  shall
set aside such amount so received into said loan loss reserve.
(e)  In  the  event  the participating financial institution suffers a
loss on any such loan, it may in its discretion draw upon the  funds  in
such loan loss reserve to repay the loan in whole or in part.
(f)  All  amounts set aside by the participating financial institution
into said loan loss reserve shall be in an account at said institution.
(g) Earnings or interest from the principal of said loan loss  reserve
accounts shall be:
(i)  maintained  in  the  account  and  held  as  additional loan loss
reserves; and
(ii) available to the corporation or its agent at any  time  and  from
time  to  time,  to  be  used  to  defray the costs of administering the
program or to replenish the loan loss reserve account of the corporation
or its agent.
(h) The corporation shall assure adequate geographic  distribution  of
participating  financial institutions throughout the state to the extent
feasible.
3. Administration of the capital access program. (a)  The  corporation
is hereby authorized to do the following:
(i)  enter  into  a contract with a third party financial institution,
which may be the New York business development corporation,  established
under  section  210  of  the  banking  law,  to  act as the agent of the
corporation with respect to the administration of the program,  provided
that  the  selection  of  a third party other than the New York business
development corporation shall be made pursuant to a competitive process;
(ii) conduct an annual review and assessment of the performance of the
third party in its capacity as agent for the  corporation  to  determine
whether  the  contract  referenced in subparagraph (i) of this paragraph
should be renewed for an additional two year period. The review shall be
based on whether the third party agent has satisfactorily met the  terms
and conditions of the contract;
(iii)  where  an  initial  determination  finds  that  the third party
agent's performance is unsatisfactory, allow the third party  agent  the
opportunity to take corrective action;
(iv)  where  a  final  review  of  the third party agent's performance
continues to conclude  that  the  third  party  agent's  performance  is
unsatisfactory,  submit to the speaker of the assembly and the temporary
president of the senate its recommendation  to  terminate  the  contract
with  the  third party agent and transfer the contract to another agent;
and
(v)  promulgate  rules   and   regulations   with   respect   to   the
implementation of the capital access program established by this section
and any other rules and regulations necessary to fulfill the purposes of
this section, in accordance with the state administrative procedure act,
and  which  shall  be  consistent  with  the  program  plan  required by
subdivision 19 of section 100 of the economic development law.
(b)  Any  contract  entered  into  pursuant  to  subparagraph  (i)  of
paragraph (a) of this subdivision shall:
(i)  be  for  a  period  of  two  years  and  shall  be renewed for an
additional two year period subject to requirements of subparagraph  (ii)
of paragraph (a) of this subdivision;
(ii) provide for compensation for expenses incurred by the third party
agent  in  connection  with  its  services  as  agent and for such other
services as the New  York  business  development  corporation  may  deem
appropriate  including,  but  not  limited  to  the use of the premises,
personnel and personal property of the third party agent; and
(iii) notwithstanding any law, rule or regulation to the contrary, use
the guidelines, related to, but not limited  to  underwriting  standards
provided   for   in   subdivision  four  of  this  section  to  evaluate
applications for loans pursuant to the program filed by a  minority  and
women-owned  business  enterprises,  or a small business whose principal
place of business is in a highly distressed area.
(c) The corporation, and any third party it contracts with pursuant to
paragraph (a) of this subdivision,  shall  collaborate,  to  the  extent
practicable,  to increase minority and women-owned businesses' and small
businesses' whose principal place of business is in a highly  distressed
area,  awareness  of,  participation  in,  and  referrals to the capital
access loan program.
4. Notwithstanding any law, rule or regulation to  the  contrary,  the
department   of   financial   services,  the  empire  state  development
corporation and  the  New  York  business  development  corporation,  in
consultation   with   relevant  stakeholders,  shall  jointly  establish
guidelines relating to, but not limited to,  underwriting  standards  to
assist   minority   and   women-owned  business  enterprises  and  small
businesses in highly distressed areas in accessing and participating  in
the   capital  access  program.  In  addition  to  other  factors,  such
guidelines should incorporate  verifiable  alternative  indications  and
best  practices  of  creditworthiness presented or made available by the
applicant.
5. Pursuant to subparagraph (v) of paragraph (b) of subdivision  1  of
section  212  of  the  banking  law,  the  New York business development
corporation and the empire state  development  corporation  shall  enter
into  an  agreement  pursuant to which the New York business development
corporation  shall  authorize,  maintain  and  administer  the   program
established in such subparagraph.
§  16-l.  Rural  revitalization  program.  1. Statement of legislative
intent. The legislature finds that vast areas of rural  New  York  state
show  signs  of  severe economic distress and lag behind the rest of the
state in employment growth  and  income,  with  the  gap  widening  with
passing  years.  Poverty in many rural areas is pervasive, with the poor
often outnumbering the affluent.
The legislature further finds that rural communities in New York state
need immediate assistance to develop the capacity to plan  and  organize
for   economic   development,  to  undertake  new  economic  development
initiatives, to overcome obstacles to economic development and to  fully
utilize  indigenous  resources  to provide rural residents with economic
opportunities.
The legislature further finds that, to begin to address these needs, a
catalyst is  needed  to  stimulate  and  encourage  innovative  economic
development alternatives to declining employment in the agricultural and
manufacturing sectors.
The legislature further finds that, while agriculture is considered to
be  a  major  New  York  industry,  state economic development financing
programs do not treat agriculture as an industrial sector, and financing
is not available to provide  farmers  with  assistance  to  become  more
competitive in national and international markets.
Therefore,  the  legislature  declares  that the revitalization of the
state's rural economy is essential to New  York's  economic  health  and
that  state  assistance  in  this  regard  is  necessary  and proper for
achieving this public purpose.
2. Rural revitalization assistance  grants.  (a)  The  corporation  is
authorized, within available appropriations in the empire state economic
development  fund  established  pursuant to section 16-i of this act, to
award grants or enter into contracts  for  services,  on  a  competitive
basis  in  response  to requests for proposals, to eligible entities and
organizations as set forth in  this  subdivision  to  support  community
economic  development  programs  and activities which increase or retain
employment  opportunities  in  rural  New  York  state   and   otherwise
contribute  to  the  revitalization  of  local  rural  areas  which  are
economically  distressed  through  innovative  activities  designed   to
generate economic alternatives and opportunities in rural areas.
(b)  Grants  and  contracts  made  by the corporation pursuant to this
subdivision shall be subject to the following limitations:
(i) no such grant shall exceed one hundred thousand dollars per  year,
except  that  for  the  purpose of paragraph (f) of this subdivision, no
such grant shall exceed fifty thousand dollars.
(ii) the corporation shall enter into no more than one grant per  year
per application under this subdivision.
(c) Preference shall be given to programs which meet highly distressed
area  criteria  or  which  support  empire zones established pursuant to
article 18-B of the general municipal law; provide a local match; meet a
substantial local or regional need; complement local programs or provide
services not readily available from units of  local  government  or  the
private sector.
(d)  For  the  purposes of this subdivision, "rural area" shall mean a
rural area as defined in subdivision 7 of section 481 of  the  executive
law.
(e)     Not-for-profit    corporations,    agricultural    cooperative
corporations, public benefit corporations and  educational  institutions
serving  rural  areas, shall be eligible to apply for support under this
subdivision for the following activities, provided,  however,  that  the
sum  total of grants received by any one eligible entity does not exceed
two hundred fifty thousand dollars in any one year:
(i)  innovative  activities  and  programs   designed   to   encourage
value-added  small  business  development  and  growth  in  rural areas,
including cottage  and  crafts  industries;  group  marketing  of  local
products;  women-owned  industries;  natural  resources development; and
tourism. Such  activities  and  programs  shall  also  include  projects
pertaining  to agriculture and agribusiness development to stimulate the

development  and  implementation  of  new  and  alternative  production,
processing,   storage,   distribution  and  marketing  technologies  and
improvements for  New  York  food,  agricultural  and  forest  products.
Projects  promoting strengthened farm management practices shall also be
eligible for assistance;
(ii) in-depth analysis within rural areas to support local efforts  to
identify  new  business  opportunities,  and  to  organize industry-wide
collaborative efforts designed to create  jobs  and  to  develop  growth
strategies;
(iii)  support  for the operation of programs designed to generate and
leverage equity-type or working capital  financing  for  new  and  small
business enterprises in rural areas, or to meet other critical financing
needs of existing rural businesses;
(iv)  support  for  multi-county  activities designed to provide small
business development and financial packaging assistance to new and small
rural business enterprises to assure the continuation and growth of such
enterprises; and
(v) provide, or cause to be provided, technical  assistance  to  small
businesses to help such businesses comply with applicable federal, state
and  local  rules  and  regulations,  including,  but  not  limited  to,
assistance  to  applicants  for  permits  required  by  such  rules  and
regulations.
(f)  Any  vocational  education  agency  offering technical assistance
services to  small  business,  any  small  business  development  center
located   at   a  post-secondary  educational  institution,  any  county
cooperative extension service, any agricultural cooperative  corporation
offering   technical   assistance   services  to  farmers  and  non-farm
agricultural  businesses  or  any  not-for-profit  corporation  offering
technical assistance, shall be eligible to apply under this paragraph to
establish  rural  enterprise  extension  services  designed  to  provide
technical assistance and services to entrepreneurs who  are  seeking  to
establish  or  who  are operating small business ventures in rural areas
where, for reasons  of  distance,  population  dispersal,  or  scale  of
business   venture,  conventional  business  incubation  and  assistance
programs are not feasible, such extension services  to  sponsor,  employ
and  support technical assistance specialists as circuit riders to serve
the rural area served by the sponsoring entity.
(i) Such specialists shall  be  the  outreach  arm  of  the  technical
assistance program and shall:
(A)  provide  technical  and  management  assistance  to entrepreneurs
seeking to establish a new small business, including but not limited to,
agribusinesses,   part-time   businesses,   crafts-related   businesses,
tourism-related businesses, and other new businesses that are started in
areas  distant  from  other  existing  programs and sources of technical
assistance;
(B) regularly visit outlying areas of the region or  areas  served  by
the  entity sponsoring the rural enterprise extension service program to
provide both short-term and ongoing technical assistance and services to
clients;
(C) arrange, when needed, for supplemental assistance to  be  provided
by the sponsoring entity;
(D)  conduct, with assistance from both local sources of expertise and
the sponsoring entity local seminars  in  outlying  regions  on  various
aspects of entrepreneurship and new enterprise development; and
(E)  provide  information on other sources and programs of assistance,
services and support, including financial sources, to entrepreneurs  and
small business operators.
(ii)  Applications  for support under this paragraph shall be required
to demonstrate a need for a rural enterprise extension  service  program
in  the  area to be served; the ability and willingness of the applicant
to support technical assistance specialists employed as  circuit  riders
with  additional  resources  to  provide  intensive, long-term technical
assistance or specialized technical assistance to  client  entrepreneurs
and  small  business operators when necessary; and the ability to assist
entrepreneurs and  small  business  operators  in  locating  appropriate
sources of financial assistance.
(iii)  For  the  purposes  of  this  subdivision "vocational education
agency"  shall  mean  a  community  college  or  board  of   cooperative
educational services operating within the state.
3.   Agricultural   job   training   assistance.  The  corporation  is
authorized, within available appropriations in the empire state economic
development fund established pursuant to section 16-i of  this  act,  to
contract   with   the   commissioner  of  agriculture  and  markets,  in
consultation with the commissioner of labor, to administer a program  of
job  training for workers engaged in or to be engaged in the production,
harvesting and processing of farm or aquatic products.
4. Farmers' market grant program. (a) The corporation  is  authorized,
within available appropriations in the empire state economic development
fund  established pursuant to section 16-i of this act, to award grants,
on a competitive  basis  in  response  to  requests  for  proposals,  to
municipal   corporations,   local   development  corporations,  business
improvement districts, not-for-profit corporations,  regional  marketing
authorities  and  agricultural  cooperatives  organized  pursuant to the
cooperative corporations  law,  for  the  construction,  reconstruction,
improvement,  expansion  or  rehabilitation  of  farmers'  markets.  The
corporation is further authorized to contract with the  commissioner  of
agriculture and markets, and such commissioner is authorized to contract
with  the  corporation,  to  prepare  and  issue requests for proposals,
accept grant applications, recommend those applications which best  meet
established  criteria  and  to  administer  grants  awarded  under  this
subdivision.
(b) Grants made by the corporation pursuant to this subdivision shall:
(i) not exceed fifty thousand dollars per year; and
(ii) be limited to fifty percent of the total proposed farmers' market
start-up or expansion costs,  not  including  any  capital  expenditures
except as set forth in paragraph (a) of this subdivision.
(c)  The  corporation shall enter into no more than one grant per year
per application under this subdivision.
(d) The corporation shall consult with the department  of  agriculture
and  markets  in order to establish such criteria governing the award of
grants as authorized herein, as the corporation and such department deem
necessary. Such criteria shall include, but not be limited to:
(i) the relative impact of the proposed farmers' market project on the
economy of the area to be served;
(ii)  the  anticipated  level   of   municipal   support   and   local
participation in the project by farmers and others;
(iii)  the extent to which New York farmers would benefit, through the
direct sale of farm and food products;
(iv) the equitable distribution of monies awarded for state assistance
for farmers' markets among urban and rural areas; and
(v) the anticipated quantity of non-farm jobs which would  be  created
and retained due to the proposed project.
(e)  Preference  shall  be  given  to:  applicants  located  in highly
distressed areas and providing services not readily available from units

of local government or the private sector  and  to  applicants  who  are
proposing to start a new farmers' market.
5.  Rural single-tenant entrepreneurship and incubator facilities. The
corporation is authorized, within available appropriations in the empire
state economic development fund established pursuant to section 16-i  of
this  act,  to  award  grants,  loans  and loan guarantees to vocational
education agencies for the development of single tenant entrepreneurship
and incubator facilities in rural areas as provided in this subdivision.
(a) For the purposes of this subdivision:
(i) "rural area" shall mean a rural area as defined in  subdivision  7
of section 481 of the executive law;
(ii)  "vocational  education agency" shall mean a community college or
board of cooperative educational services operating  within  the  state;
and
(iii)   "entrepreneurship   and   incubator  facility"  shall  mean  a
single-tenant facility providing low-cost  space,  technical  assistance
and support services, to new business enterprises.
(b)  In  sparsely  populated  rural areas where multi-tenant incubator
facilities are not feasible, assistance from  the  rural  revitalization
program  may  be  provided to vocational education agencies that have an
existing technical assistance capability that  can  be  applied  to  the
incubation  of new firms for the purpose of constructing a single-tenant
entrepreneurship and incubator facility or  rehabilitating  an  existing
space   for  use  as  a  single-tenant  entrepreneurship  and  incubator
facility.
(c) Funds from the  rural  revitalization  program  pursuant  to  this
subdivision shall only be provided for construction or rehabilitation of
a  facility.  A  vocational  education  agency receiving such assistance
shall be required to provide any machinery and equipment necessary for a
tenant to operate a start-up enterprise and  shall  be  responsible  for
operating  the facility, such operation to include classroom training in
business principles and practices to  the  prospective  owners  of  such
enterprises  prior  to  entering  into  any  tenancy agreement with such
prospective owners,  and  the  provision  of  technical  assistance  and
services to a tenant.
6.  Agricultural  industry  competitiveness  assistance.  (a)  For the
purposes of this  subdivision,  "project"  shall  mean  an  agricultural
project as set forth in paragraphs (b) and (b-1) of this subdivision.
(b)  The corporation is authorized, within available appropriations in
the empire state  economic  development  fund  established  pursuant  to
section 16-m of this act, to provide financial assistance in the form of
loans,  loan  guarantees, and interest subsidy grants to subsidize loans
from federally chartered instrumentalities and state and private lending
institutions, including agricultural cooperative corporations,  provided
that  such  assistance  to  state  lending institutions shall not exceed
one-third of the total project cost or four  hundred  thousand  dollars,
whichever  is less, to agricultural enterprises seeking to implement the
following agricultural projects:
(i) making the transition from dairy  farming  to  crop  or  livestock
farming  or  specialty wood productions, or using former dairy farms for
crop, livestock or specialty wood production, in order to keep  farmland
in  production by producing products in local, national or international
demand;
(ii) start-ups of new agribusinesses or expansions or upgrades of  the
facilities, technologies and operations of existing agribusinesses.
(b-1)  The  corporation is authorized, within available appropriations
in the empire state economic development fund  established  pursuant  to
section 16-m of this act, to provide financial assistance in the form of

loans,  loan  guarantees,  working  capital  loans, and interest subsidy
grants to subsidize loans from federally chartered instrumentalities and
state  and  private   lending   institutions,   including   agricultural
cooperative corporations, provided that such assistance to state lending
institutions  shall  not  exceed  one-third of the total project cost or
four hundred  thousand  dollars,  whichever  is  less,  to  agricultural
enterprises  seeking to implement the projects listed in this paragraph.
Funds for  such  loans,  grants,  subsidies,  or  any  other  assistance
specified  pursuant  to  this  act  may come from funds derived from the
financial assistance for  small  and  medium-sized  business  assistance
projects  established  pursuant to section 9-a of this act, the regional
revolving loan trust fund established pursuant to section 16-a  of  this
act,  the  regional economic development partnership program established
pursuant to  section  16-e  of  this  act,  the  empire  state  economic
development  fund  established  pursuant to section 16-m of this act, or
from  any  other  funds,  programs,  or  projects  administered  by  the
corporation or by other state appropriations.
(i)  the  establishment or replanting of existing vineyards with other
varieties that are in greater demand in the national  and  international
marketplace  and  which  will  increase  the  national and international
competitiveness of New York state grape growers;
(ii) the establishment or replanting of fruit orchards or small  fruit
acreages  that  have  reached the end of their natural life cycles, with
preference to  plantings  in  the  more  popular  varieties  which  have
national and international markets;
(iii)  the  establishment,  construction,  retention,  or expansion of
facilities, buildings, machinery, equipment, and other productive assets
used in the production, manufacture, processing, warehousing,  research,
or distribution or sale of fresh fruits or the processing of such fruits
into  juices,  wines,  or  other  food  products. Such project costs may
include, but not be limited to,  buildings,  machinery,  equipment,  New
York  raw fruits, New York unprocessed or partially processed fruits, or
other necessary working  capital  or  operational  funds  or  assistance
needed to ensure the success of such project.
(c)  The  corporation  shall determine the terms and interest rates of
such loans; provided, however, in the case of financial  assistance  for
vineyards,  orchards,  small  fruit  acreages,  wineries,  or processing
plants, the corporation may defer repayment of principal and interest on
loans for up to five years.
(d) Funds may be used to undertake feasibility  studies  to  determine
the  projected  local,  national,  and/or  international  demand for the
proposed crop or product to be financed and the suitability of the  land
and  climate for such production. In the case of a proposal to establish
or replant a vineyard, the corporation shall consult with the  New  York
state  wine  and grape foundation and the agricultural extension service
of Cornell University to determine the appropriateness  and  feasibility
of the proposed project.
(e)  The  provisions  of section 10 and subdivision 2 of section 16 of
this act shall not apply to assistance provided under this subdivision.
7.  Micro  business  revolving  loan  assistance   grants.   (a)   The
corporation is authorized, within available appropriations in the empire
state  economic development fund, to provide financial assistance in the
form of grants for the purpose of developing a statewide  infrastructure
that  delivers  financing  and  technical assistance to micro businesses
across  the  state  to  stimulate  new  and  existing   micro   business
development  relating  to  the  use  of  agricultural  products,  forest
products, cottage and crafts industries, tourism, and  other  businesses
as provided for in subparagraph (i) of paragraph (e) of subdivision 2 of

this  section;  provided  such  business employs five or fewer full-time
persons and is based on the production, processing, and/or marketing  of
products grown or produced in this state. Assistance provided under this
subdivision  shall be awarded through a competitive process initiated by
the corporation, in response to a request for proposals.
(b)  Not-for-profit  corporations  and  public  benefit   corporations
located  in  the state shall be eligible to apply to the corporation, in
response to a request for proposals, for a  grant,  not  to  exceed  two
hundred  thousand  dollars  in  any one calendar year, to create a micro
business revolving loan fund to be administered by the  entity  applying
for such grant, hereafter referred to in this subdivision as "micro loan
administrators",  who  shall  be  selected by the corporation from among
eligible applicants.  The  corporation  shall  show  preference  in  its
awarding of grants to micro loan administrators whose service area meets
the  provisions  of  paragraph (c) of subdivision 2 of this section. All
grant funds shall be dedicated to  being  re-lent  to  individual  micro
business borrowers, except that ten percent of such funds as are awarded
may  be  used  by  micro  loan  administrators  to  provide training and
technical assistance for such borrowers. Micro business loans  shall  be
limited  to  twenty-five  thousand dollars per borrower. Borrowers shall
provide ten percent equity for loans up to ten thousand  dollars.  Loans
above  ten  thousand  dollars  shall be matched on a one to one basis by
including  other  loans,  equity  capital  and  in  some  circumstances,
leveraged  capital.  The interest rate and the terms on such loans shall
be determined by the micro loan administrators. The  term  of  any  loan
shall  not  exceed  five  years.  All  loans  shall  be  secured by lien
positions on collateral at  the  highest  level  of  priority  that  can
accommodate  the  borrower's ability to raise sufficient debt and equity
capital for the project. Any interest earned  on  micro  business  loans
shall  be  retained  in  a  special  account  for  the purpose of paying
expenses of the loan administrator  associated  with  administering  the
micro loan program.
(c) An eligible micro loan administrator applicant shall:
(i) serve one or more rural counties;
(ii)  have  established  a  loan  committee  comprised of five or more
persons experienced in commercial lending  in  rural  areas  or  in  the
operation  of  a  for-profit  small  business  and a staff person of the
regional office of the department of  economic  development.  Such  loan
committee  shall  review  every  application  for  micro loan assistance
pursuant to this subdivision, shall determine  the  feasibility  of  the
transaction proposed in the application and shall recommend to the board
of  directors  or  other  governing body of the micro loan administrator
such action as the committee deems appropriate;
(iii) have available to its  staff  sufficient  expertise  to  analyze
applications  for micro loan assistance, provide technical assistance to
borrowers and to regularly monitor micro loan assistance to clients; and
(iv) have an acceptable plan  to  market  its  services  to  potential
borrowers  through such entities as chambers of commerce, industry trade
associations, banks, local  development  corporations,  community  based
organizations and industrial development agencies.
(d)   Applications   to   the   corporation   for   certification   or
recertification as a micro loan administrator shall:
(i) describe the organization, membership, loan committee,  staff  and
sources of other funds, if any;
(ii) identify the geographic area to be served;
(iii)  explain  the  method  and  criteria  to  be used in determining
businesses eligible for micro loan assistance;
(iv) describe the means for coordination of micro loan assistance with
other funding sources within the geographic area to be  served  for  the
purposes of leveraging project financing;
(v)  include  a  proposal to reconfigure the geographic area served by
the micro loan administrator, if applicable; and
(vi)  contain  such  other  information  as  the   corporation   deems
appropriate.
(e) The corporation shall, every five years, recertify that each micro
loan  administrator  has  complied with the terms and conditions of this
subdivision. In the event a micro loan administrator is not recertified,
or its certification is  withdrawn,  then  the  corporation  shall  give
written  notice  to such micro loan administrator which shall thereafter
neither  make  new  loans  under  this  subdivision  nor  undertake  new
obligations  except  upon  written  approval  of  the  corporation.  The
corporation may thereafter certify another micro loan  administrator  in
the  manner provided in this subdivision for the selection of micro loan
administrators.  Upon  the  certification  of  a  successor  micro  loan
administrator,  all  remaining  micro  business  loan funds, records and
accounts of the  micro  loan  administrator  not  recertified  shall  be
transferred  to  the  corporation,  and the micro loan administrator not
recertified shall cease to function pursuant to  this  subdivision.  The
corporation  shall  transfer  returned  funds  to a successor micro loan
administrator, or in the event no successor micro loan administrator  is
certified, equally to other existing micro loan administrators.
8. Cluster based industry and agribusiness development grants. (a) The
corporation is authorized, within available appropriations in the empire
state  economic  development fund, pursuant to section sixteen-m of this
act, to award matching grants, on a competitive  basis  in  response  to
requests  for  proposals,  to eligible entities and organizations as set
forth  in  this  subdivision  to  support  cluster  based  industry  and
agribusiness  development activities which increase or retain employment
opportunities and otherwise contribute to the growth  or  revitalization
of rural areas.
(b)  Cluster  based industry and agribusiness development grants shall
provide financial assistance for the purpose of establishing  a  program
to  support  cluster  based economic development efforts in rural areas.
Such grants shall be used to:
(i) Assess industry and agribusiness  needs  and  develop  methods  of
identifying industry and agribusiness clusters in a region; and
(ii)  Promote  cluster  based  industry  and  agribusiness development
initiatives  targeted  at  businesses  that  would  benefit  from  joint
activities, marketing, and problem solving.
(c)  Grant assistance provided under this subdivision shall be awarded
through  a  competitive  process  initiated  by  the   corporation,   in
consultation  with the commissioner of agriculture and markets and local
development agencies, in response to a  request  for  proposals.  To  be
eligible  for  a grant award, recipients shall provide matching funds in
the form of cash, in-kind services or other resources as defined by  the
corporation.
(d)   Not-for-profit  corporations  and  public  benefit  corporations
located in the state shall be eligible to apply to the  corporation,  in
response to a request for proposals, for a matching grant, not to exceed
25,000 dollars in any one calendar year.
* §  16-m.  The  empire state economic development fund. 1. The empire
state economic development fund is hereby created.  The  corporation  is
authorized,  within  available  appropriations,  to  provide  financial,
technical or other assistance from such  fund  for  the  following:  (a)
Loans,  loan  guarantees and grants including interest subsidy grants to

manufacturing and non-retail service firms, for headquarters  facilities
of firms engaged generally in retail industries, retail firms located in
distressed  areas and to other businesses, for the purpose of developing
recreational,  cultural,  or  historical  facilities  that are likely to
attract significant numbers of  visitors.  Loans,  loan  guarantees  and
interest  subsidy  grants  may  be  used  to  finance  new construction,
renovation or  leasehold  improvements  and  the  acquisition  of  land,
buildings,  machinery  and  equipment.  The proceeds of such loans, loan
guarantees and interest subsidy grants  may  also  be  used  to  finance
working capital;
(b)  Loans,  loan  guarantees,  and  grants including interest subsidy
grants  may  be  provided  to  municipalities,  industrial   development
agencies,  not-for-profit corporations or local development corporations
for the purpose of developing federal facility sites,  urban  industrial
sites,  industrial  parks  and  incubator  buildings;  or  to  undertake
preliminary planning relating thereto;
(c)  Grants  for  the  purpose  of  creating  or  retaining  jobs   or
preventing,  reducing  or  eliminating  unemployment  or underemployment
including, but not limited to, productivity assessments,  export  market
development  plans  and  other  projects to promote international trade;
skills training assistance including classroom instruction or on the job
training; and programs to assist  economically  distressed  regions  and
communities  to  identify  new  business  opportunities,  plan  for  new
enterprise development and manage economic development projects;
(d)  Loans,  loan  guarantees,  interest  subsidies  and   grants   to
businesses,  municipalities,  industrial  development agencies and local
and regional economic development  corporations  for  projects  for  the
purpose   of  attracting,  retaining  or  permitting  the  expansion  of
industrial, manufacturing, commercial, research  and  development,  high
technology,  tourism,  agricultural or non-retail service businesses and
not-for-profit organizations which shall include, but not be limited  to
basic  systems  and  facilities  on  public and privately owned property
including drainage systems,  sewer  systems,  access  roads,  sidewalks,
docks,  wharves,  water supply systems, and site clearance, preparation,
improvements  and  demolition.  In  addition,  grants  for   preliminary
planning  of  projects  eligible to apply for financing pursuant to this
paragraph may be provided;
(e) Grants to municipalities, not-for-profit  corporations  and  local
and  regional  economic  development  organizations  seeking to attract,
stabilize, retain or revitalize existing businesses, and to assist small
and new businesses for activities including, but  not  limited  to,  the
preparation   of   strategic   plans  for  local  or  regional  economic
development, the analysis of business sectors, marketing  and  promoting
regional business clusters, and feasibility studies;
(f)  Loans, loan guarantees, interest subsidy grants and direct grants
for feasibility studies,  surveys  and  reports,  architectural  design,
studies,  and  other redevelopment work for non-residential improvements
to commercial building, commercial strips, downtown  areas  or  business
districts;
(g)  Assistance  to  local  or  regional  organizations  to facilitate
financing for small- and medium-sized business, including minority-  and
women-owned  business  enterprises  through flexible financing programs,
including, but not limited to, loan  loss  reserve  and  revolving  loan
programs,  working  capital  loans,  working capital loan guarantees, or
other flexible financing programs that leverage traditional financing;
(h) Assistance to eligible entities and organizations as set forth  in
section  16-l  of  this  act  to  support community economic development
programs and activities, including value-added  small  business  growth,

agricultural,  agribusiness, and forest products and those projects that
promote the family farm, increase or retain employment opportunities and
otherwise contribute to the revitalization of local  rural  areas  which
are economically distressed;
(i)  Assistance to eligible entities set forth in section 16-l of this
act to support value-added small  businesses  in  the  agricultural  and
agribusiness industries that promote fruit production, fruit processing,
or  wineries  and  which  increase or retain employment opportunities in
such industries or in the related tourism industry;
(j) Assistance  to  local  or  regional  organizations  to  facilitate
financing  for the come home to New York program pursuant to article 9-A
of the economic development law;
(k) Assistance for regional  partnership  proposals,  as  provided  in
subdivision 12 of section 3154 of the public authorities law;
** (l) Loans, loan guarantees, interest subsidies and grants including
interest  subsidy  grants  to  businesses,  local  and regional economic
development   corporations,   not-for-profit   corporations,    regional
marketing organizations, agricultural cooperatives organized pursuant to
the   cooperative   corporations   law,  and  other  local  or  regional
organizations to finance transportation and distribution  projects  that
facilitate  distribution  and sales of New York farm products by farmers
and associations of  farmers  to  food  and  food  services  buyers  and
processors,  such  as  restaurants,  schools,  food  retailers, farmers'
markets, colleges and other institutional operations especially in urban
and other communities where there has been a  lack  of  availability  of
such products. Loans, loan guarantees and interest subsidy grants may be
used  to  finance new construction, renovation or leasehold improvements
and the acquisition of land, buildings, machinery and equipment.
** NB There are 2 sub (l)'s
** (l)   Assistance   to   biosciences   research   institutions   and
organizations   on   a  competitive  basis  to  develop  curriculum  and
administer  bioscience  specific  training  programs  for  current   and
prospective  industry  employees,  in  consultation with the division of
science, technology and innovation established pursuant to article 18 of
the economic development law. For the purposes of  this  paragraph,  the
term  biosciences  research  shall  include,  but not be limited to, the
basic, applied, or translational research that leads to the  development
of  therapeutics,  diagnostics,  or  devices, to improve human health or
agriculture and that require federal drug administration approval;
** NB There are 2 sub (l)'s
(m)  Assistance  to  businesses  that  conduct   basic,   applied   or
translational  research  that  leads to the development of products that
improve human health or agriculture and that  require  approval  by  the
federal  food  and  drug  administration,  in  order to create or expand
facilities, in accordance with good manufacturing practice  regulations,
that  will  create  or retain more than fifty jobs. For purposes of this
paragraph, good  manufacturing  practice  regulations  refers  to  those
regulations   promulgated   by   the   United   States   Food  and  Drug
Administration under  the  authority  of  the  Federal  Food,  Drug  and
Cosmetic Act.
(n)   Loans,   loan  guarantees,  interest  subsidies  and  grants  to
businesses, municipalities, industrial development  agencies  and  local
and   regional   economic   development   corporations,   not-for-profit
corporations,  business  improvement   districts,   regional   marketing
authorities  and  agricultural  cooperatives  organized  pursuant to the
cooperative corporations law, and other entities for  the  construction,
reconstruction,  improvement,  expansion  or rehabilitation of wholesale

regional farmers' markets or food hubs  that  facilitate  the  sale  and
promotion of farm products grown or produced in New York state.
For  the  purposes  of  this  paragraph  a wholesale regional farmers'
market or food hub is a market, business or organization  that  actively
manages the aggregation, distribution and marketing of source-identified
food  products  primarily  from  local  or regional producers to satisfy
wholesale, retail and institutional demand for such products.
(o) Assistance to eligible entities pursuant to article five-A of  the
cooperative  corporations law to provide financing in the form of loans,
loan guarantees, and interest subsidy grants  to  subsidize  loans  from
federally  chartered  instrumentalities  and  state  and private lending
institutions to facilitate the  creation  of  worker  cooperatives  that
promote  continuation of existing micro-businesses either as a part of a
preexisting business succession of  ownership  plan  or  as  alternative
option  if  a  business  is  being  offered  for sale or transfer by the
current owner or the heirs or  estate  of  a  deceased  owner.  For  the
purposes  of  this  section,  a  micro-business  shall  be  defined as a
business with five or less full-time or full-time equivalent  employees.
All  eligible  entities shall be required to submit a business plan with
their application requesting assistance.
2. Applications for assistance  pursuant  to  this  section  shall  be
reviewed and evaluated in cooperation with regional economic development
offices  pursuant  to eligibility requirements and criteria set forth in
rules and  regulations  promulgated  by  the  corporation.  Approval  of
project  applications  shall  be  made  only upon a determination by the
corporation:
(a) that the proposed project would promote the economic health of New
York state by facilitating the creation or retention of  jobs  or  would
increase  activity within a municipality or region of the state or would
enhance or help to maintain the economic viability of family farms;
(b) that the project would be unlikely to take place in New York state
without the requested assistance.
(c) that the project is reasonably likely  to  accomplish  its  stated
objectives and that the likely benefits of the project exceed costs; and
(d)  the  project  is  undertaken in accordance with the memorandum of
understanding executed in accordance with this section.
3. The provisions of this section shall  expire,  notwithstanding  any
inconsistent provision of subdivision 4 of section 469 of chapter 309 of
the laws of 1996 or of any other law, on July 1, 2025.
* NB Expires July 1, 2025
* §  16-n.  Restore New York's Communities Initiative. 1. Definitions.
(a) For the purposes of this section  "deconstruction"  shall  mean  the
careful   disassembly   of   buildings   of  architectural  or  historic
significance with the intent to rehabilitate, reconstruct  the  building
or salvage the material disassembled from the building.
(b)  For  the purposes of this section "reconstruction" shall mean the
construction of a new building which is similar in architecture and size
to a previously existing building at such location.
(c) For the purposes  of  this  section  "rehabilitation"  shall  mean
structural  repairs,  mechanical  systems repair or replacement, repairs
related to deferred maintenance, emergency  repairs,  energy  efficiency
upgrades,  accessibility  improvements,  mitigation  of lead based paint
hazards, and other repairs which result in a significant improvement  to
the property.
(d)  For  the  purposes  of this section "municipality" shall mean any
county, city, town or village within the state of  New  York,  except  a
city  having a population of one million or more, unless such area is in

a distressed community as defined in paragraph (c) of subdivision six of
this section.
(e)  For  the  purposes  of  this section "residential apartment unit"
shall  mean  a  multiple  dwelling  consisting  of  one  or  more  rooms
containing  at least one bathroom, which room or rooms are separated and
set apart from all other rooms within a multiple dwelling.
(f) For the purposes of this section "affordable housing units"  shall
mean  permanent  housing  that is affordable to low- and moderate-income
households, such that the new housing achieves income  averaging  at  or
below   fifty  percent  of  the  area  median  income,  with  residents'
eligibility capped at a maximum of eighty percent  of  the  area  median
income at the start of their lease.
2.  The  Restore  New York's Communities Initiative is hereby created.
The corporation is authorized, within available appropriations, to issue
request for proposals at least once per fiscal year  to  provide  grants
for  the  purposes  established  in  subdivisions  four and five of this
section, to municipalities that have  completed  a  property  assessment
list, as established in subdivision three of this section.
3.  Property  assessment  list.  To be eligible for the demolition and
deconstruction program  or  rehabilitation  and  reconstruction  program
assistance,  as  established  in  subdivisions  four  and  five  of this
section,  municipalities  shall  conduct  an   assessment   of   vacant,
abandoned,  surplus  or  condemned buildings in communities within their
jurisdiction. Such real property may include residential real  property,
residential   apartment  units  and  commercial  real  properties.  Such
properties shall be selected  for  the  purpose  of  revitalizing  urban
centers  or rural areas, encouraging commercial investment, adding value
to the municipal housing stock, and increasing the amount of  affordable
housing  units  available  to  low-  and moderate-income households. The
property assessment list shall be organized to  indicate  the  location,
size,  whether the building is residential or commercial and whether the
building   will   be   demolished,   deconstructed,   rehabilitated   or
reconstructed.  Such  properties  shall  be  published  in a local daily
newspaper for no less than three  consecutive  days.  Additionally,  the
municipality  shall conduct public hearings in the communities where the
buildings are identified.
4. Demolition and deconstruction program. Real  property  in  need  of
demolition or deconstruction on the property assessment list may receive
grants  of  up to thirty thousand dollars per residential real property.
The  corporation  shall   determine   the   cost   of   demolition   and
deconstruction  of  commercial properties on a per-square foot basis and
establish maximum grant awards accordingly. The corporation  shall  also
consider   geographic   differences   in  the  cost  of  demolition  and
deconstruction in the establishment of maximum grant awards.
5. Rehabilitation and reconstruction program.  (a)  Real  property  in
need of rehabilitation or reconstruction on the property assessment list
may  receive  grants  of  up  to  one hundred fifty thousand dollars per
residential real property. Exclusive of such grant of up to one  hundred
fifty   thousand  dollars  for  residential  real  property,  individual
residential apartment units on the property assessment list may  receive
grants  of up to seventy thousand dollars per unit. Nothing contained in
this paragraph shall be construed to authorize grants for real  property
and residential apartment units to be combined.
(b)  Provided,  further,  that  a  project  for  the rehabilitation or
reconstruction of real property pursuant to  this  subdivision  for  the
purpose  of  creating  affordable  housing  units  shall  be eligible to
receive a grant of up to one hundred fifty thousand dollars plus  up  to
seventy thousand dollars per residential apartment unit.
(c)  The  corporation  shall  determine the cost of rehabilitation and
reconstruction of commercial properties on a per-square foot  basis  and
establish  maximum  grant awards accordingly. The corporation shall also
consider geographic  differences  in  the  cost  of  rehabilitation  and
reconstruction  in  the establishment of maximum grant awards. Provided,
however,  to  the  extent  possible,   all   such   rehabilitation   and
reconstruction program real property shall be architecturally consistent
with  nearby  and  adjacent  properties or in a manner consistent with a
local revitalization or urban development plan. Provided, further,  such
grant  may  be used for site development needs including but not limited
to water, sewer and parking.
6. Granting of  assistance.  (a)  The  corporation  shall  review  all
property  assessment  lists and may make awards pursuant to subdivisions
four and five of this section. The corporation  shall,  to  the  fullest
extent   possible,   provide   such   assistance   in  a  geographically
proportionate  manner  throughout  the  state  based  on  the  qualified
applications received pursuant to this section.
(b)  Priority in granting such assistance shall be given to properties
eligible under this section  that  have  approved  applications  or  are
receiving  grants  pursuant  to  other  state  or federal redevelopment,
remediation or planning programs including, but not limited to,  to  the
brownfield  opportunity  areas program adopted pursuant to section 970-r
of the general municipal law or an investment zone  designated  pursuant
to paragraph (i) of subdivision (a) or subdivision (d) of section 958 of
the general municipal law.
(c)  Priority  shall  also  be  given  to  properties  in economically
distressed communities which are defined as cities and other communities
determined by the commissioner of the department of economic development
on the basis of criteria  indicative  of  economic  distress,  including
poverty   rates,   numbers   of  persons  receiving  public  assistance,
unemployment rates, rate of employment decline, population loss, rate of
per capita income change,  decline  in  economic  activity  and  private
investment,   and  such  other  indicators  as  the  commissioner  deems
appropriate to be in need of economic assistance.
(d) A municipality that is granted  an  award  or  awards  under  this
section  shall  provide  a  matching  contribution  of  no less than ten
percent  of  the  aggregated  award  or  awards  amount.  Such  matching
contribution  may  be  in  the  form  of  a  financial  and/or  in  kind
contribution. Financial contributions may include grants  from  federal,
state  and  local entities.  In kind contributions may include but shall
not be limited to the efforts of municipalities to conduct an  inventory
and   assessment   of   vacant,   abandoned,   surplus,  condemned,  and
deteriorated properties and to manage and administer grants pursuant  to
subdivisions  four  and  five  of  this  section. A municipality that is
granted an award or awards under this section shall make best efforts to
ensure  that  minority-owned  and   women-owned   business   enterprises
certified  pursuant  to article fifteen-A of the executive law are given
the opportunity for maximum  feasible  participation  in  any  municipal
contracting opportunities.
* NB There are 2 § 16-n's
* §  16-n.  Collection of payments in lieu of taxes pursuant to leases
with respect to parcels within the Brooklyn bridge park  civic  project.
(1) Definitions. As used in this section:
(a)  "tenant"  shall  mean any individual, partnership, trust, limited
liability  company,  public  or   private   corporation   (including   a
cooperative  housing  corporation), or other entity holding the tenant's
interest in a residential lease;
(b)  "residential  lease"  shall  mean  a  lease,  sublease  or  other
agreement  that relates to any portion of the Brooklyn bridge park civic
project and is designed  and  intended  for  the  purpose  of  providing
housing accommodations and such facilities as may be incidental thereto,
the  lessor's  interest  in  which  is  held  by  Brooklyn  bridge  park
development corporation;
(c) "underlying parcel" shall mean a parcel subject to  a  residential
lease;  provided,  however, that in any case where the tenant's interest
in a residential lease is held by  a  unit  owner,  "underlying  parcel"
shall mean the parcel in which the unit is included;
(d)  "unit  owner"  and  "unit"  shall  have the meanings specified in
section three hundred thirty-nine-e of the real property law;
(e) "parcel" shall have the meaning specified in section  one  hundred
two  of  the  real property tax law; provided, however, that in any case
where the tenant's interest in a residential lease is  held  by  a  unit
owner,  "parcel"  shall  mean  the  real  property deemed to be a parcel
pursuant to paragraph (a) of subdivision two of  section  three  hundred
thirty-nine-y of the real property law;
(f)  "Brooklyn  bridge  park"  shall  mean  the  park  and  facilities
consisting of approximately eighty-five acres in the city of  New  York,
county  of Kings, state of New York established pursuant to the Brooklyn
bridge park civic project undertaken by Brooklyn bridge park development
corporation, a subsidiary of the corporation, but  excluding  the  areas
thereof  developed  or  to  be  developed  for  private  residential  or
commercial use pursuant to a lease, sublease or similar  agreement  with
Brooklyn   bridge  park  development  corporation  which  areas  may  be
inclusive  of  any  easement  area  granted  in  connection  with   such
development;
(g)  "Brooklyn  bridge  park  civic  project"  shall mean the park and
facilities consisting of approximately eighty-five acres in the city  of
New York, county of Kings, state of New York established pursuant to the
Brooklyn  bridge park civic project and the general project plan adopted
July twenty-sixth, two thousand five and affirmed as modified on January
eighteenth,  two  thousand  six  undertaken  by  Brooklyn  bridge   park
development  corporation,  a  subsidiary  of  the  corporation,  as such
general project plan may be further amended, modified or supplemented;
(h) "qualified leasehold condominium" shall have the meaning specified
in section three hundred thirty-nine-e of the real property law.
(2) With respect to each underlying parcel which is owned  in  fee  or
leased  pursuant  to  a ground lease by Brooklyn bridge park development
corporation and is exempt from real property taxes pursuant to this  act
or  otherwise,  the  residential  lease for such underlying parcel shall
provide for the payment by the tenant under such  residential  lease  of
annual  or  other  periodic amounts equal to the amount of real property
taxes that otherwise would be paid  or  payable  with  respect  to  such
underlying  parcel,  after  giving  effect  to  any  real  property  tax
abatements and exemptions, if any, which would be applicable thereto, if
Brooklyn bridge park development corporation was not the owner or lessee
of the underlying parcel.
(3) With respect to all parcels owned or  leased  by  Brooklyn  bridge
park development corporation that do not constitute an underlying parcel
and  are  exempt  from  real  property  taxes  pursuant  to  this act or
otherwise, the lease, sublease or other agreement for such parcel or any
portion thereof may provide for the payment by the lessee (or sublessee)
under such lease,  sublease  or  other  agreement  of  annual  or  other
periodic  amounts in lieu of real property taxes that otherwise would be
paid or payable with respect to such parcel, after giving effect to  any
real  property  tax  abatements  and  exemptions, if any, which would be

applicable thereto, if Brooklyn bridge park development corporation  was
not the owner or lessee of the parcel.
(4)  In  addition,  the  lease,  sublease  or other agreement for each
parcel or any portion thereof may provide for the payment of interest by
the unit owner and any lessee (or sublessee) of a parcel (or  a  portion
thereof)  for  amounts  overdue, as of the dates and in the same amounts
provided for the payment of overdue real property taxes in the  city  of
New York.
(5)  Payments  received pursuant to this section, and all interest and
earnings thereon, shall be:
(a) from the period commencing on the effective date of  this  section
until  the  twentieth  anniversary thereof, used to improve, operate and
maintain the Brooklyn bridge park, unless otherwise agreed  to  be  used
for the other purposes specified in paragraph (b) of this subdivision in
such  agreements as may from time to time be entered into among Brooklyn
bridge park development corporation, the city of New York and the  state
of New York by an entity designated by the governor; and
(b)  from  the  twentieth  anniversary  of  the effective date of this
section,
(i) used to improve, operate and maintain the Brooklyn bridge park,
(ii) set aside in appropriate and reasonable reserve accounts,  taking
into  account  all other revenue received or anticipated by the Brooklyn
bridge park development corporation  from  properties  in  the  Brooklyn
bridge  park civic project, for expenses to be incurred for the purposes
set forth in subparagraph (i) of this paragraph, or
(iii) paid into the general fund of the city of New York  to  be  used
for  its general public purposes, all in accordance with such agreements
as may from time to time be entered  into  among  Brooklyn  bridge  park
development corporation, the city of New York, and the state of New York
by an entity designated by the governor.
(6)  Any  state  or city agency, department or authority to the extent
authorized under applicable law may render such  services  within  their
functions,  such  as  the  collection  and  enforcement of payments owed
pursuant to this section, as may be requested.
(7) All leases shall permit the assignment  by  Brooklyn  bridge  park
development  corporation  of its right, title and interest in such lease
to the entity which (a)  is  designated  to  operate  and  maintain  the
Brooklyn  bridge park and is an instrumentality of the state of New York
or the city of New York, (b) enables  each  underlying  parcel  and  the
improvements  thereon  to  remain  a qualified leasehold condominium and
remain exempt from real  property  taxes,  and  (c)  is  authorized  and
required by applicable law to:
(i)  collect the annual or other periodic amounts that would have been
collected pursuant to this section had such assignment  not  been  made;
and
(ii)  demand  from,  and be entitled to, interest payments by the unit
owner and any lessee (or sublessee) of a parcel  (or  portion  thereof),
for  such  amounts  past  due,  as  of the dates and in the same amounts
provided for the payment of past due real property taxes in the city  of
New York.
* NB There are 2 § 16-n's
§  16-o.  The community development financial institutions program. 1.
Legislative intent. The legislature hereby finds  that  credit,  banking
services,  and  investment  capital  are  vital to the revitalization of
communities and neighborhoods  throughout  the  state.  The  legislature
further  finds  that  many  communities  with the greatest potential for
growth and the greatest need for jobs and investment lack access to  the
services  and  capital  of traditional banking and lending institutions.

The legislature further  finds  that  access  to  banking  services  and
capital  can  be  improved  through  a  growing  network  of alternative
financial service providers known  as  community  development  financial
institutions, hereafter referred to as CDFIs. The legislature finds that
CDFIs  are  currently providing effective lending and financial services
and fulfill a vital role in meeting the needs of New  York  state's  low
and moderate income communities.
The  legislature  finds that the continued growth of CDFIs requires an
established support structure  in  order  to  build  capacity  in  these
institutions. The legislature further finds that creation of a statewide
CDFI  fund  will  strengthen these institutions, allowing them to expand
their mission of addressing the credit and  banking  needs  of  low  and
moderate income communities in New York state.
2.  Definitions.  As  used  in this section, the following terms shall
have the meanings indicated:
(a) "Community Development Financial Institution" or "CDFI"  means  an
organization  located  in  this  state  which  has  been  certified as a
community development financial institution  by  the  federal  community
development  financial  institutions fund, as established pursuant to 12
U.S.C. 4701 et seq.
(b) "Fund" means the community development financial institutions fund
as established by subdivision three of this section.
(c) "Investment area" means a geographic area that:
(i) is economically distressed as defined in section sixteen-d of this
act; and
(ii) has significant unmet  needs  for  loans  or  encompasses  or  is
located  in  a  federally  designated  empowerment  zone  or  enterprise
community as established pursuant to title XIII of the  federal  Omnibus
Budget Reconciliation Act of 1993 (Pub.L. 103-66) or a designated empire
zone  as defined pursuant to article eighteen-B of the general municipal
law.
(d) "Low income" means having an income, adjusted for family size,  of
not more than:
(i)  for metropolitan areas, eighty percent of the area median income;
and
(ii) for non-metropolitan areas, the greater of eighty percent of  the
area  median  income or eighty percent of the statewide non-metropolitan
area median income.
(e) "Targeted population" means individuals or an  identifiable  group
of  individuals  who  are  low income persons or otherwise lack adequate
access to loans.
3. Establishment and purposes. The corporation shall establish a  fund
to  be  known as the "community development financial institutions fund"
and  shall  pay  into  such  fund  any  monies  made  available  to  the
corporation  for  such  fund  from  any  source.  The  monies held in or
credited to the fund shall be expended solely for the purposes set forth
in this section. The corporation shall not transfer the monies  of  such
fund  to  any other fund or monies of the corporation or any monies held
in trust by the corporation. The corporation is authorized,  subject  to
available   funding,   including,   but   not   limited   to,  available
appropriations,  to  provide  financial  and  technical  assistance   to
community development financial institutions that make loans and provide
development   services   to   specific   investment  areas  or  targeted
populations.
4. Applications for assistance. An application for assistance shall be
submitted in such form and in accordance with  such  procedures  as  the
corporation  shall  establish.  Applications  submitted  to the fund may
include but not be limited to:
(a) A business plan;
(b)  An  analysis  of  the  needs  of  the investment area or targeted
population and a strategy for addressing those needs;
(c) An explanation of proposed activities, and information on how they
are consistent  with  any  existing  economic,  community,  and  housing
development  plans  adopted  by  or  applicable to an investment area or
targeted population;
(d) A description of how the applicant will coordinate with  community
organizations  and  financial  institutions  and leverage private sector
investments, including, but not limited to, loans, secondary markets, or
other services to the investment area or targeted populations;
(e) In the case of an  applicant  with  a  prior  history  of  serving
investment  areas  or  targeted  populations,  a  demonstration that the
applicant:
(i) has a record of success in serving investment  areas  or  targeted
populations; and
(ii) will expand its operations into a new investment area or to serve
a  new targeted population, offer more products or services, or increase
the volume of its current business;
(f) A description of how the applicant will provide financial services
for community businesses that employ or will create jobs for low  income
persons  or  to  businesses  that  are  owned  by low income persons, or
enhance the availability of products and services to low income persons;
and
(g) Any additional information that the corporation shall require.
5. Selection of CDFIs. In the awarding of assistance, the  corporation
shall  select  from  eligible CDFI applicants based on criteria that may
include:
(a) The likelihood of success of the applicant in meeting the goals of
its strategic plan;
(b) The experience and background of the CDFI's board of directors  or
management team;
(c)  The  extent of need for loans and development services within the
investment areas or targeted populations;
(d) The extent of economic distress within the investment areas or the
extent of need within the targeted populations;
(e) The extent to which the proposed activities will  expand  economic
opportunities within the investment areas or targeted populations;
(f)  The  extent  of  support  from  the  investment areas or targeted
populations;
(g) The extent  of  the  applicant's  current  and  planned  community
involvement;
(h)  The  extent  to  which  the applicant will increase its resources
through coordination with  other  institutions  or  participation  in  a
secondary market;
(i)  In  the  case  of  an  applicant  with a prior history of serving
investment areas or targeted  populations,  the  extent  of  success  in
serving such areas or populations; and
(j) Other factors deemed to be appropriate by the corporation.
6.  Assistance  provided  by  the  corporation.  The  corporation  may
provide:
(a) Financial assistance through deposits, credit union shares, loans,
and grants.
(b) Technical assistance  and  training  to  any  CDFI  regardless  of
whether or not it receives or has received financial assistance from the
fund.   Monies from the fund may be used for activities that enhance the
capacity of a CDFI, such as training of management and other  personnel,

and   development  of  programs,  investment,  or  loan  products.  Such
technical assistance and training may be provided:
(i) directly;
(ii) through grants; or
(iii)  by  contracting  with  organizations  that possess expertise in
community development finance, without regard  to  whether  or  not  the
organizations  receive  or are eligible to receive assistance under this
section.
7. Uses of financial assistance. A CDFI which files an application and
is approved by the corporation for financial  assistance  may  use  such
assistance for the following purposes:
(a)   the   development   of   commercial   facilities   that  promote
revitalization, community stability, and the creation  or  retention  of
jobs;
(b) the development or improvement of community facilities;
(c) the provision of basic financial services;
(d)  housing  that  is  principally  affordable  to low income people,
except that assistance used to facilitate home ownership shall  only  be
used  for services and lending products that serve low income people and
are not provided by other lenders in the area  or  that  complement  the
services and lending products provided by other lenders in the area;
(e) the development or support of businesses that:
(i)  provide  jobs  for  low  income people or are owned by low income
people, women, or minority entrepreneurs; or
(ii) enhance the availability of products and services to  low  income
people; or
(f)  the  development  or  support  of other businesses and activities
deemed appropriate by the corporation.
8.  Advisory  committee.  The  corporation  may  create  an   advisory
committee,   consisting   of  at  least  five  members,  to  advise  the
corporation in the promotion, implementation and administration  of  the
community development financial institutions program. Such members shall
have  experience  with CDFIs and shall, to the extent practical, reflect
diversity in geographic location and communities served.
9. Reporting requirements. The corporation shall submit  a  report  to
the governor, the speaker of the assembly and the temporary president of
the  senate  on or before the first of October, and annually thereafter,
describing the financial and technical assistance provided  pursuant  to
this  article,  including:  the  number  of  CDFI applications filed and
accepted; the amount and type of assistance provided; a  description  of
projects financed or assisted by fund monies; the number of jobs created
or retained through the investment of fund monies; the amount and source
of  funds  leveraged;  and such other information as the corporation may
deem appropriate.
10. Rules and regulations. The corporation  is  hereby  authorized  to
promulgate   rules   and   regulations  in  accordance  with  the  state
administrative procedure act that are necessary to fulfill the  purposes
of this section.
§  16-p.  The  investment  opportunity  fund.  1. Definitions. For the
purposes of this section, the following terms, whenever used or referred
to in this section, shall apply, but not be limited  to,  the  following
meanings:
(a)  "Cost"  as applied to a project or portion thereof financed under
this section, means all  or  any  part  of  the  cost  of  construction,
remediation,  renovation, and acquisition of all lands, structures, real
or personal property, rights, air rights, rights-of-way, easements,  and
interests  acquired  or  used  for a project; the cost of demolishing or
removing any buildings or structures on land so acquired, including  the

cost  of acquiring any lands to which the buildings or structures may be
moved, the cost of machinery and equipment, interest prior  to,  during,
and  for  a  period  after,  completion  of  construction,  remediation,
renovation,  or  acquisition,  as  determined  by  the  corporation; for
extensions,  enlargements,  additions,  replacements,  renovations,  and
improvements;   the   cost   of   architectural,   engineering,   plans,
specifications, estimates, and other expenses necessary or incidental to
the construction, acquisition, and financing of any  project,  excluding
lobbying and governmental relations expenses.
(b)  "Facilities"  means  real  and personal property, structures, air
rights, conveyances, equipment, thoroughfares, buildings, and supporting
components thereof located in the state, that are  directly  related  to
the    acquisition,    construction,   reconstruction,   rehabilitation,
remediation, or improvement of a project which will achieve the purposes
of  facilitating  the  creation  or  retention  of  jobs  or  increasing
investment  or  business activity within a municipality or region of the
state or academic research and  development  efforts  that  promote  the
development  of  life sciences and high technology initiatives including
genomics and  biotechnology  research  and  which  may  include  project
purposes set forth in this section.
(c) "Financial assistance" in connection with a project, includes, but
is  not limited to, grants, loans, equity investments, loan forgiveness,
loan guarantee, or any combination thereof.
(d)  "Project"  shall  include  but  not  be  limited  to   designing,
acquiring,   planning,  permitting,  entitling,  demolishing,  removing,
constructing, improving, extending,  restoring,  financing,  remediating
and generally developing facilities.
(e) "Sponsor" or "project sponsor" shall be the state or any political
subdivision of the state or a municipality, including but not limited to
any  departments, agencies, public benefit corporations, or commissions.
In addition, a sponsor or project  sponsor  may  include  not-for-profit
corporations   formed   on  behalf  of  a  sponsor,  special  districts,
assessment  districts,  tax  increment  financing  units  or  districts,
business  improvement  districts,  regional  and  community  development
organizations,     not-for-profit     organizations,      not-for-profit
organizations  or businesses organized to do business under the laws of,
or  doing  business  within  the  state,  or  any  combination  of   the
aforementioned  entities  that  makes application to the corporation for
financial assistance in connection with an investment  opportunity  fund
project in a manner prescribed by the corporation.
2.  Fund  created.  The investment opportunity fund is hereby created.
The corporation  is  authorized,  within  available  appropriations,  to
provide financial assistance pursuant to this section.
3.  Selection of projects. Following consultation with the division of
the budget and with other appropriate state and local agencies and other
organizations, and prior to soliciting or accepting any application  for
assistance, the corporation shall:
(a)  provide  public  notice of the primary development objectives and
minimum standards of the program and individual projects expected to  be
eligible for funding through the program; and
(b)  promulgate rules and regulations setting forth the standards that
will govern the selection  of  projects.  Such  standards  shall,  at  a
minimum:
(i)  require  that  no  project  shall be awarded financial assistance
unless such project meets or  exceeds  specified  minimum  standards  as
provided by rules and regulations with respect to economic impact;
(ii)  require  that each project be consistent with any existing local
or regional comprehensive plan. A municipality which is a  lead  sponsor

for  a  project  or  projects  shall  submit  a resolution that has been
adopted by the legislative body or bodies of the  lead  project  sponsor
that  certifies  that  the  proposed project is consistent with existing
local  or  regional plans; the proposed financing is appropriate for the
specific project; the project facilitates effective and efficient use of
existing and future public resources so  as  to  promote  both  economic
development  and  appropriate  use of natural resources; and the project
develops or enhances infrastructure or other facilities in a manner that
will attract, create, and sustain long-term  investment  and  employment
opportunities; and
(iii)  provide, to the fullest extent possible, assistance to projects
that will provide economic benefits to one or more regions of the  state
or,  for  projects  that  are  not  anticipated  to  have  a  regionally
significant impact, that will provide economic  benefits  to  localities
that  suffer  from  disproportionate  levels  of  poverty, unemployment,
population or job loss or other indicators of economic distress.
4. Reporting. The corporation shall submit a report to the director of
the budget, the temporary president of the senate, the  speaker  of  the
assembly,  the  minority leader of the senate and the minority leader of
the assembly on the investments and accomplishments  of  the  investment
opportunity  fund.  Such  report  shall  include, but not be limited to,
information on the number  of  jobs  created  and  retained,  levels  of
private  sector  investment,  economic  benefit  to  the state and local
economies and types of industries invested  in.  Such  report  shall  be
submitted by July 1, 2009 and July first every year thereafter.
5.  Evaluation.  The corporation shall submit a report to the director
of the budget, the temporary president of the senate, the speaker of the
assembly, the minority leader of the senate and the minority  leader  of
the  assembly  evaluating  the  economic  and  social  benefits  of  the
investment opportunity fund. Such evaluation shall  be  prepared  by  an
entity  or  entities  independent  of  the  corporation  which  shall be
selected through a request for proposal process. Such  evaluation  shall
be submitted by October 1, 2009 and October first every year thereafter.
6.  The  investment  opportunity  fund  capital  approval board. (a) a
capital approval board shall be a five member board that is  created  to
consider and review each project receiving material financial assistance
and  the  unanimous  approval  of  the  voting  members  of such capital
approval board shall be required before the  corporation  shall  furnish
any material financial assistance; provided, however, that if, by thirty
days following the submission of written materials by the corporation no
voting  member  of the board has notified the chairperson of the capital
approval board in writing of his or her disapproval within such  period,
or  the  capital  approval  board  shall  not  have  voted to approve or
disapprove any proposed furnishing of financial assistance, the  capital
approval  board  shall  have been deemed to have approved such proposal.
The voting members shall include: (i) the director of the budget or  his
or  her  designee  who  shall  act  as  chairperson,  (ii) the temporary
president of the senate or his or her designee, and (iii) the speaker of
the assembly or his or her designee. The two non-voting members will  be
appointed  one  each,  by  the  minority  leader  of  the senate and the
minority leader of the assembly. The  review  of  the  capital  approval
board  shall  be  limited  to  the  adequacy  of the economic and social
benefits of the proposed  furnishing  of  financial  assistance  by  the
corporation.
(b) the provisions of article 7 of the public officers law shall apply
to meetings of the capital approval board.
7.  Notwithstanding  any  other  provision of law to the contrary, any
project financed through the investment opportunity fund, and  any  bond

sale  undertaken  by  the corporation to finance such projects, shall be
exempt from  the  provisions  of  sections  50  and  51  of  the  public
authorities law.
§  16-q.  The upstate regional blueprint fund. 1. The upstate regional
blueprint fund is hereby created. The upstate empire  state  development
corporation  is authorized to provide financial, product development, or
other assistance from such fund to eligible entities  as  set  forth  in
this  subdivision  to  support  the  upstate revitalization fund, and in
support of such projects that focus on:  intellectual  capital  capacity
building;   investment   products;  applied  research  and  development;
opportunities for  foreign  investment  and  international  export;  and
infrastructure requirements to attract new businesses or expand existing
businesses.  For-profit  businesses, not-for-profit corporations, public
benefit  corporations,  municipalities,  and   research   and   academic
institutions  shall  be eligible to apply for such activities under this
subdivision including, but not limited to, the following:
(a) Support for projects identified through region-wide  collaborative
efforts  as  part  of the overall growth strategy for the local economy,
including  but  not  limited  to  smart  growth  and  energy  efficiency
initiatives.
(b)  Support for the attraction or expansion of a business, including,
but not limited to, those primarily engaged in activities identified  as
a  strategic  industry,  and  minority-owned  and  women-owned  business
enterprises as defined by subdivisions  (c)  and  (g)  of  section  nine
hundred fifty-seven of the general municipal law.
(c)  Support for land acquisition and/or the construction, acquisition
or expansion of buildings, machinery and  equipment  associated  with  a
project.
(d)  Support  for  projects  identified  as a city by city or regional
blueprint priority.
2. Applications for assistance  pursuant  to  this  section  shall  be
reviewed and evaluated pursuant to eligibility requirements and criteria
set  forth in rules and regulations promulgated by the upstate chairman,
and subject to approval by the board of directors of the upstate  empire
state development corporation. Approval of project applications shall be
made  by  the  upstate  chairman,  subject  to  approval by the board of
directors of the upstate empire state development corporation.
3. Priority in granting assistance generally will be given to projects
(a) with significant private financing or matching funds  through  other
public  entities,  (b)  likely  to  produce  a  high  return  on  public
investment, (c) with existence of significant  support  from  the  local
business  community, local government, community organizations, academic
institutions and other regional parties, (d) with  significant  regional
breadth  or  likely  to have wide regional impact, (e) with cost benefit
analysis that demonstrates sustainable job creation and investments, (f)
located in distressed areas using economic  criteria  developed  by  the
upstate  empire state development corporation, which may include but not
be limited to  land  value,  employment,  private  investment,  economic
activity,  and  population,  or  (g)  whose  application is submitted by
multiple entities, both public and private.
4. The upstate empire state development corporation shall provide such
assistance in a geographically proportionate manner  throughout  upstate
based on qualified applications received pursuant to this section.
5.  Assistance  may  be  in  the  form  of  loans,  grants,  or monies
contributing to projects for which the corporation or a subsidiary  acts
as   developer.  (i)  The  corporation  may  act  as  developer  in  the
acquisition, renovation, construction, leasing or  sale  of  development
projects  authorized  pursuant to this act in order to stimulate private

sector investment within the affected community. (ii)  In  acting  as  a
developer,  the  corporation may borrow for purposes of this subdivision
for approved projects in which the lender's recourse is  solely  to  the
assets  of  the  project,  and may make such arrangements and agreements
with community-based organizations and local development corporations as
may be required to carry out the purposes of this section.  (iii)  Prior
to  developing  any  such  project,  the corporation shall secure a firm
commitment from  entities,  independent  of  the  corporation,  for  the
purchase  or  lease of such project. (iv) Projects authorized under this
subdivision whether developed by the corporation or a private developer,
must be  located  in  distressed  communities,  for  which  there  is  a
demonstrated demand within the particular community.
6.  Eligible applicants shall include, but not be limited to, business
improvement  districts,   local   development   corporations,   economic
development organizations, institutions of higher education, incubators,
technology  parks,  private  firms,  municipalities,  counties, regional
planning councils, tourist attractions, and community facilities.
7. The corporation shall submit  a  report  to  the  director  of  the
budget,  the  temporary  president  of  the  senate,  the speaker of the
assembly, the minority leader of the senate and the minority  leader  of
the  assembly  on  the  investments  and  accomplishments of the upstate
regional blueprint fund. Such report shall include, but not  be  limited
to,  information  on  the number of jobs created and retained, levels of
private sector investment, economic  benefit  to  the  state  and  local
economies  and  types  of  industries  invested in. Such report shall be
submitted by July 1, 2009 and July first every year thereafter.
8. The corporation shall submit  a  report  to  the  director  of  the
budget,  the  temporary  president  of  the  senate,  the speaker of the
assembly, the minority leader of the senate and the minority  leader  of
the  assembly evaluating the economic and social benefits of the upstate
regional blueprint fund. Such evaluation shall be prepared by an  entity
or  entities  independent  of  the  corporation  which shall be selected
through a  request  for  proposal  process.  Such  evaluation  shall  be
submitted by October 1, 2009 and October first every year thereafter.
9.  The  corporation  is  hereby  authorized  to  promulgate rules and
regulations in accordance with the state administrative procedure act as
are necessary to fulfill the purposes of this section.
§  16-r.  The  downstate  revitalization  fund.   1.   The   downstate
revitalization  fund  is  hereby created. The corporation is authorized,
within  available  appropriations,   to   provide   financial,   project
development,  or other assistance from such fund to eligible entities as
set forth in this subdivision for the purposes of supporting  investment
in  distressed  communities  in  the downstate region, and in support of
such projects  that  focus  on:  encouraging  business,  community,  and
technology-based  development,  and  supporting  innovative  programs of
public and private cooperation working to  foster  new  investment,  job
creation    and    small   business   growth.   For-profit   businesses,
not-for-profit    corporations,     public     benefit     corporations,
municipalities, and research and academic institutions shall be eligible
to  apply  for such activities under this subdivision including, but not
limited to, the following:
(a) Support for projects identified through collaborative  efforts  as
part of the overall growth strategy for the local economy, including but
not limited to smart growth and energy efficiency initiatives.
(b)  Support  for the attraction or expansion of a business including,
but not limited to, those primarily engaged in activities identified  as
a   strategic  industry  and  minority-owned  and  women-owned  business

enterprises as defined by subdivisions  (c)  and  (g)  of  section  nine
hundred fifty-seven of the general municipal law.
(c)  Support for land acquisition and/or the construction, acquisition
or expansion of buildings, machinery and  equipment  associated  with  a
project.
(d)  Support  for projects located in an investment zone as defined by
paragraph (i) of subdivision (d) of section 957 of the general municipal
law.
2. Applications for assistance  pursuant  to  this  section  shall  be
reviewed and evaluated pursuant to eligibility requirements and criteria
set  forth  in  rules  and  regulations  promulgated by the corporation.
Approval of project applications shall  be  made  by  the  chairman  and
subject to approval by the board of directors of the corporation. Grants
and  loans  awarded under this section shall be awarded on a competitive
basis, in  response  to  requests  for  proposals,  and  through  direct
applications   accepted   at  other  times  at  the  discretion  of  the
corporation.
3. Priority in granting assistance generally will be given to projects
(a) with significant private financing or matching funds  through  other
public  entities,  (b)  likely  to  produce  a  high  return  on  public
investment, (c) with existence of significant  support  from  the  local
business  community, local government, community organizations, academic
institutions and other regional parties, (d) deemed likely  to  increase
the  community's  economic  and  social viability, (e) with cost benefit
analysis that demonstrates sustainable job creation and investments, (f)
located in distressed areas using economic  criteria  developed  by  the
corporation,  which  may  include  but  not  be  limited  to land value,
employment, private investment, economic activity,  and  population,  or
(g) whose application is submitted by multiple entities, both public and
private.
4. Applications for support or assistance under this subdivision shall
be  made  in  a  form  and  manner as determined by the corporation, and
applicants shall be required  to  meet  the  criteria  and  requirements
determined  by the corporation pursuant to this act, which will focus on
the potential of the project or program to stimulate or enhance economic
development in the area or employment opportunities  in  the  distressed
communities and regions.
5.  Assistance  may  be  in  the  form  of  loans,  grants,  or monies
contributing to projects for which the corporation or a subsidiary  acts
as   developer.  (i)  The  corporation  may  act  as  developer  in  the
acquisition, renovation, construction, leasing or  sale  of  development
projects  authorized  pursuant to this act in order to stimulate private
sector investment within the affected community. (ii)  In  acting  as  a
developer,  the  corporation may borrow for purposes of this subdivision
for approved projects in which the lender's recourse is  solely  to  the
assets  of  the  project,  and may make such arrangements and agreements
with community-based organizations and local development corporations as
may be required to carry out the purposes of this section.  (iii)  Prior
to  developing  any  such  project,  the corporation shall secure a firm
commitment from  entities,  independent  of  the  corporation,  for  the
purchase  or  lease of such project. (iv) Projects authorized under this
subdivision whether developed by the corporation or a private developer,
must be  located  in  distressed  communities,  for  which  there  is  a
demonstrated demand within the particular community.
6.  Eligible applicants shall include, but not be limited to, business
improvement  districts,   local   development   corporations,   economic
development organizations, institutions of higher education, incubators,

technology  parks,  private  firms,  municipalities,  counties, regional
planning councils, tourist attractions, and community facilities.
7.  The  corporation  shall  submit  a  report  to the director of the
budget, the temporary president  of  the  senate,  the  speaker  of  the
assembly,  the  minority leader of the senate and the minority leader of
the assembly on the investments and  accomplishments  of  the  downstate
revitalization  fund.  Such report shall include, but not be limited to,
information on the number  of  jobs  created  and  retained,  levels  of
private  sector  investment,  economic  benefit  to  the state and local
economies and types of industries invested  in.  Such  report  shall  be
submitted by July 1, 2009 and July first every year thereafter.
8.  The  corporation  shall  submit  a  report  to the director of the
budget, the temporary president  of  the  senate,  the  speaker  of  the
assembly,  the  minority leader of the senate and the minority leader of
the  assembly  evaluating  the  economic  and  social  benefits  of  the
downstate  revitalization  fund. Such evaluation shall be prepared by an
entity or  entities  independent  of  the  corporation  which  shall  be
selected  through  a request for proposal process. Such evaluation shall
be submitted by October 1, 2009 and October first every year thereafter.
9. The corporation  is  hereby  authorized  to  promulgate  rules  and
regulations in accordance with the state administrative procedure act as
are necessary to fulfill the purposes of this section.
§ 16-s. The upstate agricultural economic development fund and healthy
food  /  healthy  communities  initiative.  1.  The upstate agricultural
economic  development  fund  and  healthy  food  /  healthy  communities
initiative  is  hereby  created.  The  corporation is authorized, within
available appropriations, to provide financial assistance in the form of
loans, grants or contracts for services, to  eligible  entities  as  set
forth  in this subdivision to support the upstate revitalization fund to
reduce the cost of financing the construction, expansion  or  renovation
of  agricultural  economic  development  projects, to reduce the cost of
agricultural inputs or to support activities related to the retention of
existing farmers or the recruitment of new farmers and to  increase  the
number  of  food  markets  providing  affordable and nutritious foods in
underserved areas.
2. Not-for-profit corporations, agricultural cooperative corporations,
public benefit corporations, municipalities and educational institutions
serving rural areas shall be eligible to apply for  support  under  this
subdivision for the following activities:
(a)  Support  for  local efforts to identify new agricultural economic
development opportunities, and to organize  industry-wide  collaborative
efforts  designed  to  develop  growth  strategies  for the agricultural
industry.
(b) Support for local  or  regional  activities  designed  to  provide
business  development  and  financial  packaging  assistance  to new and
expanding agricultural economic development projects.
(c) Development and delivery of programs to promote the  retention  of
existing farmers and to attract new farmers.
(d)  Feasibility  studies  to  determine the projected local, national
and/or international demand for the  proposed  crop  or  product  to  be
financed  pursuant  to  this section and the suitability of the land and
climate for such production.
(e) Support for land acquisition and/or the construction,  acquisition
or  expansion  of  buildings,  machinery and equipment associated with a
project.
(f)  Loans  can  be  provided  by  the  corporation  to   agricultural
cooperative corporations, not-for-profit corporations and public benefit

corporations  for  the purpose of providing low cost financing from such
entities to projects for purposes described in this subdivision.
(g)   Such   projects  shall  be  consistent  with  the  environmental
protection goals of the state.
3.  Community  development  financial  institutions,  as  defined   by
paragraph  (a)  of subdivision 2 of section sixteen-o of this act, shall
be eligible to apply for designation under this subdivision  to  perform
the  duties  of  a  program administrator for the healthy food / healthy
communities initiative.
(a) Program administrators will be required to enter into  a  contract
with the corporation for the following responsibilities:
(i)  raise matching capital to leverage state funds within three years
of signing a contract with the corporation;
(ii) report, at least annually, on the sources and  amounts  of  funds
raised;
(iii) develop underwriting criteria; and
(iv) process loans and grants for food markets.
(b)   Administrative   costs   of   program   administrators  will  be
reimbursable as set forth in either  rules  and  regulations  issued  in
accordance  with  paragraph (d) of subdivision 5 of this section or in a
request for proposal.
(c) Eligible food markets are any entities in subparagraph (i) of this
paragraph. Eligible food markets must demonstrate  that  their  proposed
project  will  benefit  an  underserved area, as defined in subparagraph
(ii) of this paragraph.
(i) An eligible food market applicant may  be  a  for-profit  business
enterprise  (including  a  corporation,  limited liability company, sole
proprietor, cooperative  or  partnership),  not-for-profit  corporation,
agricultural   cooperative   corporation,  public  benefit  corporation,
municipal corporation, regional market facility, or a food cooperative.
(ii) An underserved area is  defined  as  a  low-  or  moderate-income
census  tract,  an  area of below average supermarket density or an area
having a supermarket customer base with more than 50 percent living in a
low-income census tract.
(iii) Eligible uses for funds from state  grants  and  loans  to  food
markets include:
(A)   pre-development   costs   for   project  feasibility,  including
professional fees, market studies and appraisals;
(B) land assembly, including demolition and environmental remediation;
(C) site development;
(D)   infrastructure   improvements,   including    renovation,    new
construction or adaptive reuse; and
(E) equipment purchases.
(d)  The  program  administrator  shall  review,  and  if  appropriate
approve, applications by food markets. The program  administrator  shall
review  applications  every  other  month  for  as  long as funds remain
available in the loan pool. The program administrator shall review  each
application  to  determine  whether  the proposed project is financially
viable and demonstrates all of the following:
(i) makes a positive impact on the local economy;
(ii) increases revenues to the state, the host  municipality,  or  the
market  region  or  creates  a  new  agricultural  economic  development
opportunity;
(iii) adherence to sound land use principles;
(iv) promotes community development by  working  in  conjunction  with
other programs;
(v) incorporates energy efficiency and green building principles; and
(vi)  to  the maximum extent practicable, provides healthy, nutritious
food grown by sustainable agricultural practices.
4.  Applications  for  assistance pursuant to this section, except for
the healthy foods / healthy communities initiative,  shall  be  reviewed
and  evaluated  pursuant  to  eligibility  requirements and criteria set
forth in rules and regulations promulgated by the upstate  chairman,  in
consultation  with the commissioner of the department of agriculture and
markets, and subject to approval  by  the  board  of  directors  of  the
upstate  empire  state  development  corporation.  Approval  of  project
applications shall be made by the upstate chairman, in consultation with
the commissioner of the department of agriculture and  markets,  subject
to  approval  by  the  board  of  directors  of the upstate empire state
development corporation.
5. Applications to be the program administrator for the healthy food /
healthy communities initiative shall be reviewed and evaluated  pursuant
to  eligibility  requirements  and  criteria  which  may be set forth in
either rules and regulations, a request for proposal or an application.
(a) Applications shall identify at least one food  access,  health  or
community  development  organization  who  will  work  with  the program
administrator applicant to:
(i) analyze market opportunities in underserved areas;
(ii) recruit food market operators and developers;
(iii) pre-qualify food market applications on non-financial  criteria;
and
(iv)  provide  technical  assistance  with regard to operating grocery
stores in low-income communities.
(b) Administrative costs of  the  food  access,  health  or  community
development  organization will be reimbursable as set forth in rules and
regulations issued in accordance with paragraph (d) of this  subdivision
or in a request for proposal.
(c)  Approval  of  at least one program administrator shall be made by
the upstate chairman, in  consultation  with  the  commissioner  of  the
department  of agriculture and markets, subject to approval by the board
of directors of the upstate empire state development corporation.
(d) At his or her discretion, the upstate chairman of the  corporation
may   promulgate   rules  and  regulations,  in  consultation  with  the
commissioner of the department of agriculture and markets,  and  subject
to  approval  by  the  board  of  directors  of the upstate empire state
development corporation for the implementation of this section.
6. The corporation, in  consultation  with  the  commissioner  of  the
department  of  agriculture  and  markets,  shall submit a report to the
director of the budget, the  temporary  president  of  the  senate,  the
speaker  of  the  assembly,  the  minority  leader of the senate and the
minority leader of the assembly on the investments  and  accomplishments
of the upstate agricultural economic development fund. Such report shall
include,  but  not  be  limited  to,  information  on the number of jobs
created and retained, levels  of  private  sector  investment,  economic
benefit  to  the  state  and  local  economies  and  types of industries
invested in. Such report shall be submitted by July  1,  2009  and  July
first every year thereafter.
7.  The  corporation,  in  consultation  with  the commissioner of the
department of agriculture and markets, shall  submit  a  report  to  the
director  of  the  budget,  the  temporary  president of the senate, the
speaker of the assembly, the minority  leader  of  the  senate  and  the
minority  leader  of  the  assembly  evaluating  the economic and social
benefits of the upstate agricultural  economic  development  fund.  Such
evaluation shall be prepared by an entity or entities independent of the
corporation  which  shall  be  selected  through  a request for proposal

process. Such evaluation shall be  submitted  by  October  1,  2009  and
October first every year thereafter.
8.  The  corporation  is  hereby  authorized  to  promulgate rules and
regulations in accordance with the state administrative procedure act as
are necessary to fulfill the purposes of this section.
9. The provisions of section ten and subdivision 2 of section  sixteen
of this act shall not apply to assistance provided under this section.
§  16-t.  Small  business revolving loan fund.   1. The small business
revolving loan fund  program  is  hereby  created.  The  corporation  is
authorized,  within  available  appropriations,  to provide low interest
loans to community  development  financial  institutions,  in  order  to
provide   funding  for  those  lending  organizations'  loans  to  small
businesses, and micro-businesses located within  New  York  state,  that
generate economic growth and job creation within New York state but that
are  unable to obtain adequate credit or adequate terms for such credit.
If in  the  discretion  of  the  corporation  the  use  of  a  community
development  financial  institution  is  not  practicable based upon the
application of rules  and  regulations  developed  by  the  corporation,
including,   but   not   limited   to,  assessments  of  geographic  and
administrative capacity, then  the  corporation  is  authorized,  within
available appropriations, to provide low interest loans to the following
other  local  community  based  lending  organizations:  small  business
lending consortia, certified development companies, providers of  United
States  department  of  agriculture  business  and industrial guaranteed
loans, United  States  small  business  administration  loan  providers,
credit  unions  and  community  banks.  As  used  in this section "small
business"  means  a  business  that  is  resident  in  New  York  state,
independently owned and operated, not dominant in its field, and employs
one  hundred  or fewer persons. As used in this section "micro-business"
means a business that is resident in New York state, independently owned
and operated, and employs less than five people.
2. In order for a lending  organization  to  be  eligible  to  receive
program  funds, it must have established sufficient expertise to analyze
small business and  micro-businesses  applications  for  program  loans,
evaluate  the creditworthiness of small businesses, and micro-businesses
and regularly monitor program  loans.  The  lending  organization  shall
review every program loan application in order to determine, among other
things,  the  feasibility of the proposed use of the requested financing
by the small business or micro-business  applicant,  the  likelihood  of
repayment  and  the  potential  that  the  loan  will  generate economic
development and jobs  within  New  York  state.  The  corporation  shall
identify  eligible lending organizations through one or more competitive
statewide or local solicitations. The corporation shall show  preference
in   awarding   program   funds   to  lending  organizations  who  serve
micro-businesses and micro-loans.
3. Program loans to small businesses  and  micro-businesses  shall  be
targeted   and   marketed   to  minority  and  women-owned  enterprises,
veteran-owned enterprises as set forth in 15 U.S.C.  section  632(Q)(3),
as  amended  from  time  to  time,  and  service-disabled  veteran-owned
enterprises as set forth in article three of the veterans' services law,
and  other  small  businesses  and  micro-businesses  that  are   having
difficulty  accessing traditional credit markets. Program loans to small
businesses and micro-businesses shall  be  used  for  the  creation  and
retention of jobs, as defined by the corporation, including: (a) working
capital;  (b)  the  acquisition and/or improvement of real property; (c)
the acquisition of machinery and equipment, property or improvement;  or
(d)  the  refinancing of debt obligations. There shall be two categories
of loans to small businesses and micro-businesses:  a  micro  loan  that

shall  have  a  principal  amount that is less than twenty-five thousand
dollars and a regular loan that shall have a principal amount  not  less
than twenty-five thousand dollars. Prior to receiving program funds, the
lending  organization  must  certify  to  the corporation that such loan
complies with this section and rules and regulations promulgated for the
program and that the lending organization has performed its  obligations
pursuant  to  and  is in compliance with this section, the program rules
and regulations and all agreements entered into between the  corporation
and  the  lending  organization.  The  program  funds amount used by the
lending organization to fund a program applicant loan shall not be  more
than  fifty  percent  of  the principal amount of such loan. The program
funds amount  used  by  the  lending  organization  to  fund  a  program
applicant  loan  shall  not  be greater than one hundred and twenty-five
thousand  dollars.  Minority-  and  women-owned  business   enterprises,
veteran-owned  enterprises  as set forth in 15 U.S.C. section 632(Q)(3),
as  amended  from  time  to  time,  and  service-disabled  veteran-owned
enterprises as set forth in article three of the veterans' services law,
and  other  small businesses or micro-businesses who access such program
loans under this subdivision shall not be precluded from accessing  such
short-term  financing  loans  provided  under subdivision eleven of this
section.
4. Program funds shall not be used for: (a) projects that would result
in the relocation of any business operation from one municipality within
the state to another, except under one of the following conditions:  (i)
when a business is relocating within a municipality with a population of
at  least  one  million  where  the  governing body of such municipality
approves such relocation; or (ii) the lending organization notifies each
municipality from which such business operation will  be  relocated  and
each municipality agrees to such relocation; (b) projects of newspapers,
broadcasting   or  other  news  media;  medical  facilities,  libraries,
community or civic centers; or public infrastructure  improvements;  and
(c)  providing funds, directly or indirectly, for payment, distribution,
or as a loan, to  owners,  members,  partners  or  shareholders  of  the
applicant business, except as ordinary income for services rendered.
5.  With  respect  to  its program loans, the lending organization may
charge application, commitment and loan guarantee  fees  pursuant  to  a
schedule of fees adopted by the lending organization and approved by the
corporation.  Approved  micro-loans  for  five  thousand dollars or less
shall have applications fees waived.
6. Program funds shall be disbursed to a lending organization  by  the
corporation  in the form of a loan to the lending organization. The term
of the loan shall commence upon disbursement of the program funds by the
corporation to the lending organization. The  loan  shall  carry  a  low
interest  rate  determined  by  the corporation based on then prevailing
interest rates  and  the  circumstances  of  the  lending  organization.
Notwithstanding  the  performance  of  the  loans  made  by  the lending
organization using program funds, the lending organization shall  remain
liable  to  the  corporation with respect to any unpaid amounts due from
the lending organization pursuant to  the  terms  of  the  corporation's
loans  to  the  lending  organization. In addition, a portion of program
funds may be disbursed to a lending organization in the form of a  grant
or  forgivable  loan,  provided  those  funds  are  used  by the lending
organization for  administrative  expenses  associated  with  the  fund,
loan-loss  reserves,  or  other  eligible  expenses as determined by the
corporation.
7. Notwithstanding anything to  the  contrary  in  this  section,  the
corporation  shall  provide  at  least  five hundred thousand dollars in

program funds pursuant to this section to lending organizations for  the
purpose of making loans to small business located in Niagara county.
8.  Notwithstanding  anything  to  the  contrary  in this section, the
corporation shall provide at least  five  hundred  thousand  dollars  in
program  funds pursuant to this section to lending organizations for the
purpose of making loans  to  small  business  located  in  St.  Lawrence
county.
9.  Notwithstanding  anything  to  the  contrary  in this section, the
corporation shall provide at least  five  hundred  thousand  dollars  in
program  funds pursuant to this section to lending organizations for the
purpose of making loans to small business located in Erie county.
10. Notwithstanding anything to the  contrary  in  this  section,  the
corporation  shall  provide  at  least  five hundred thousand dollars in
program funds pursuant to this section to lending organizations for  the
purpose of making loans to small business located in Jefferson county.
11.  Notwithstanding  anything  to  the  contrary in this section, the
corporation may provide  at  least  five  hundred  thousand  dollars  in
program  funds pursuant to this section to lending organizations for the
purpose of  making  short-term  financing  available  to  minority-  and
women-owned  business  enterprises and other small businesses performing
contracts to provide construction or  professional  services  for  state
procurement purposes. Such loans shall be used to underwrite the cost of
labor,  materials,  and  equipment  directly  associated  with  (1)  the
contract being financed or (2) a contract that has  been  satisfied  for
which the business is awaiting payment from the state. The program funds
amount used by the lending organization to fund a program applicant loan
shall  not  be  more than eighty percent of the principal amount of such
loan. The program funds amount used by the lending organization to  fund
a  program  applicant  loan  shall  not  be  greater  than  one  hundred
twenty-five  thousand  dollars.  Minority-  and   women-owned   business
enterprises  and  other  small  businesses  who  access  such short-term
financing loans under this  subdivision  shall  not  be  precluded  from
accessing  such  program  loans provided under subdivision three of this
section.
12.  Notwithstanding  any  provision  of  law  to  the  contrary,  the
corporation  may  establish  a program fund for program use and pay into
such fund any funds available to the corporation from  any  source  that
are  eligible  for  program  use,  including  moneys appropriated by the
state.
13. With respect to a lending organization program loan applicants, no
person who is a member of the board or other  governing  body,  officer,
employee,  or member of a loan committee, or a family member of any such
lending  organization  shall  participate  in  any  decision   on   such
application  if such person is a party to or has a financial or personal
interest in such loan. Any person  who  cannot  participate  in  a  loan
application  decision  for such reasons shall not be counted as a member
of the loan committee, board or other governing  body  for  purposes  of
determining  the  number  of  members  required  for  approval  of  such
application.
14. The lending organization shall submit to  the  corporation  annual
reports stating: the number of program loans made; the amount of program
funding  used  for  loans; the use of loan proceeds by the borrower; the
number of jobs created or  retained;  the  status  of  each  outstanding
program  loan, including fund balance; and such other information as the
corporation may require.
14-a. Beginning April 1, 2019, the corporation shall  publish  on  its
website  the  information contained in the annual reports required under

subdivision fourteen of this section in aggregate form omitting borrower
identifiable information.
15.  The corporation may conduct audits of the lending organization in
order to ensure compliance with the  provisions  of  this  section,  any
regulations  promulgated with respect thereto and agreements between the
lending organization and the corporation of all aspects of  the  use  of
program  funds  and  program  loan  transactions.  In the event that the
corporation  finds  substantive  noncompliance,  the   corporation   may
terminate the lending organization's participation in the program.
16.  Upon termination of a lending organization's participation in the
program, the lending  organization  shall  return  to  the  corporation,
promptly  after  its  demand therefor, all program fund proceeds held by
the lending organization; and provide to the corporation, promptly after
its demand therefor, an accounting of all program funds received by  the
lending  organization,  including  all  currently outstanding loans that
were made using program funds.  Notwithstanding  such  termination,  the
lending organization shall remain liable to the corporation with respect
to  any unpaid amounts due from the lending organization pursuant to the
terms of the corporation's loans to the lending organization.
§ 16-u. Innovate NY fund. 1. The Innovate NY fund is  hereby  created.
The  purpose of the Innovate NY fund is to make available state funds to
eligible applicants to support emerging business ideas and products that
result in the growth of business within the state  and  the  concomitant
creation of jobs and tax revenues for the state.
2.  Eligible applicants for Innovate NY funds may include regional and
local  economic  development   organizations,   technology   development
organizations,  research universities, and investment funds that provide
seed-stage investments in New York state companies.
3. Funding from the Innovate NY fund may  be  made  available  to  the
applicant  for  investment  in  beneficiary  companies.  In  order to be
eligible for an investment that includes Innovate NY investment funds, a
beneficiary company must: (a) be, or agree in writing to be, located  in
New  York  state; (b) be in the seed-stage of development, as defined by
the corporation; (c) demonstrate a potential for substantial growth  and
job  development  in an emerging technology field, as defined in section
thirty-one hundred two-e of the public authorities law or in regulations
as adopted by the corporation; and (d) have the  potential  to  generate
additional  economic  activity  in  New  York state. Investment priority
shall be given to beneficiary companies involved in commercialization of
research and development or high technology manufacturing.
4. The corporation shall  establish  a  competitive  process  for  the
evaluation of applicants for the Innovate NY investment fund. Applicants
shall  be  evaluated  on  criteria  including,  but  not limited to, the
applicant's: (a) track record of success in raising investment funds and
successfully investing them; (b) capacity to perform due  diligence  and
to  provide  management  expertise  and  other  value-added  services to
beneficiary companies;  (c)  financial  resources  for  identifying  and
investing  in  seed-stage  companies;  (d)  ability  to secure non-state
matching program investment funds at a ratio that is equal to or greater
than one to one (1:1); (e) ability to evaluate the commercial  potential
of  emerging technologies; (f) ability to secure partnerships with local
or regional investors; (g) adoption of conflict of  interest  provisions
acceptable   to  the  corporation;  and  (h)  other  criteria  that  the
corporation  determines  is  relevant  to  making  investment  decisions
consistent with the purposes of the fund as set forth in subdivision one
of  this  section. When awarding funds pursuant to this subdivision, the
corporation shall assure that the applicants demonstrate  the  need  for
seed  capital  in  the  areas  served  by  the applicant and provide for

adequate geographic distribution  of  awards  to  beneficiary  companies
throughout  the  state  to  the  extent  feasible. The corporation shall
distribute funds promptly pursuant to a disbursement process  agreed  to
between the corporation and applicant to enable the applicant to fulfill
commitments to beneficiary companies in a timely manner.
5.  At  the  time  the  applicant  has  invested  fifty percent of the
Innovate NY funds committed to such applicant and  annually  thereafter,
aggregate  investments  of  Innovate  NY  funds  by  such  applicant  in
beneficiary companies shall be leveraged with private sources of capital
excluding investments after the initial funding round at a  ratio  equal
to or greater than two to one (2:1).
6.  The  Innovate  NY  fund  shall  not invest an amount in any single
beneficiary company that exceeds five hundred thousand dollars, or seven
hundred  fifty  thousand  dollars  in  the  case   of   any   individual
biotechnology-related  beneficiary,  at any one time, subject to certain
exceptions  to  be  established  by  rules  and   regulations   of   the
corporation.
7.   Notwithstanding  any  provision  of  law  to  the  contrary,  the
corporation may establish a program fund for program use  and  pay  into
such  fund  any  eligible  funds  available  to the corporation from any
source, including moneys appropriated by the state.
8.  The  corporation  shall  submit  a  report  annually  on  December
thirty-first  to  the director of the budget, the temporary president of
the senate, the speaker of the assembly,  the  minority  leader  of  the
senate  and  the minority leader of the assembly detailing (a) the total
amount of funds committed to each applicant that receives funds and  the
amount  of such funds that has been invested by each such applicant; (b)
the amount of Innovate NY and private funds invested in each beneficiary
company; (c) the type  of  product  or  technology  being  developed  or
produced   by  each  beneficiary  company;  (d)  the  location  of  each
beneficiary company; (e) the number of jobs projected to be  created  or
retained;  and  (f)  such  other  information  as  the corporation deems
necessary.
9. The corporation  is  hereby  authorized  to  promulgate  rules  and
regulations in accordance with the state administrative procedure act as
are  necessary  to  fulfill the purposes of this section, including with
respect to reasonable management fees, promotes,  share  of  return  and
other  fees and charges of applicants that receive funds, and to provide
for the repayment of funds received by the beneficiary  company  if  the
beneficiary  company leaves New York state within a period of time to be
established by the corporation.
10. In accordance with the rules and regulations to be promulgated  by
the  corporation,  the  corporation may impose fees, establish repayment
terms and  provide  for  equity  participation  by  the  corporation  in
connection with investments from the Innovate NY fund.
11.  The  provisions  of  section  ten  and subdivision two of section
sixteen of this act shall not apply to assistance  provided  under  this
section.
§  16-v.  New  York  state  business incubator and innovation hot spot
support act. 1. (a) The  corporation  is  authorized,  within  available
appropriations,  to issue requests for proposals once per fiscal year to
provide grants pursuant to subdivisions five and six of this section for
the purposes established under this act. The corporation  may  designate
entities,  which  upon  application meet the requirements of subdivision
two of this section as New York state incubators, and may provide grants
and assistance as provided under  subdivisions  five  and  six  of  this
section  to  such  designated entities. "New York state incubator" shall
mean a business incubation program which also provides physical space or

which is a virtual incubation program  that  has  been  designated  upon
application by the corporation as a New York state incubator pursuant to
subdivisions  two  and  three  of this section and which thereby becomes
eligible   for  benefits,  support,  services,  and  programs  available
pursuant to such designation. Provided however, that virtual  incubators
which  provide assistance to eligible businesses not in residence in one
physical location, shall submit a plan of operation which sets forth the
maximum number of eligible businesses to be served and their  geographic
distribution.
(b)  From  among  the  qualified  "New  York  state  incubators",  the
corporation is further authorized, within available  appropriations,  to
designate  applicants  as  "New  York  state  innovation  hot spots." An
incubator receiving a "New York state innovation hot  spot"  designation
shall be eligible for the benefits under section thirty-eight of the tax
law,  subparagraph  eighteen  of  paragraph  (a)  of subdivision nine of
section two hundred eight of the tax law, subdivision eleven of  section
two hundred nine of the tax law, paragraph thirty-nine of subsection (c)
of  section  six  hundred  twelve  of  the  tax  law,  paragraph  one of
subdivision (d) of section one thousand one hundred nineteen of the  tax
law,  and paragraph thirty-five of subdivision (c) of section 11-1712 of
the administrative code of the city of New York.
2.  Requirements  for  designation.  (a)  An  entity  wishing  to   be
designated  as  a  New  York  state innovation hot spot or as a New York
state incubator pursuant to this section shall be located  in  New  York
state  and  shall have been in existence or otherwise in operation for a
period of at least three fiscal years prior to the current fiscal  year,
or  demonstrate  continuity  of  staffing,  program, and purpose showing
continuation through another auspice or governing entity, and shall have
demonstrated  a  connection  to  regional  sources  of  innovation   and
expertise,  and  that it meets the goals of creating jobs and incubating
businesses with survival rates in excess of average startups,  and  that
the  program has a strategic plan to continue to meet such goals for the
three years succeeding designation  and  that  commits  the  program  to
implementing   best   practices.  Such  demonstration  shall  include  a
commitment by the sponsor to continue to maintain  the  program  for  at
least  three  years after such designation, and to provide any reporting
information that the corporation shall require.
(b) In determining whether an entity shall be designated as a New York
state innovation hot spot or New York state incubator,  the  corporation
shall require that the entity meet the requirements of subparagraphs (i)
and  (ii)  of  this  paragraph  and  may consider whether the entity has
developed the programs, services, and attributes in subparagraphs  (iii)
through (xvi) of this paragraph:
(i) institutional stability and long term viability, indicated by: the
sponsor's commitment to financially and programmatically maintaining the
incubator for at least two years in addition to the current fiscal year;
receipt  of  non-state  public  and  private  grant and/or other revenue
sources including property rentals and program fees  that  are  or  have
proven to be predictable and reliable; and manageable debt service;
(ii)  a  strategic  plan  that  describes  the  impact on the regional
entrepreneurial environment that the incubator is intended to  have  and
commits  the  incubator  to  best  incubation  practices and describes a
defined process that accelerates commercialization and development for a
client company or entity  through  provision  of  technical  assistance,
direct  mentorship,  entrepreneurial education, and business development
services, including development of a business plan and markets,  aid  in
development  of  the  management  team, product, customers, and local or

regional supply chain partners, access to investment, and launching of a
successful business which will employ New Yorkers;
(iii)  an  integrated  array  of  services  which  includes management
guidance, technical assistance,  consulting,  mentoring,  business  plan
development,  aid  in  creation  of  the  business  entity,  and ongoing
counseling;
(iv) opportunities for clients  to  network,  collaborate  with  other
business  programs,  and gain access to services, including through such
programs as the small business development center,  the  local  or  area
chamber of commerce or other business association, programs of the small
business  administration,  and/or  other similar business organizations,
associations, and programs;
(v)  access  to  capital  via  referral  or  other  arrangements  with
financial institutions, venture capitalists, angel investors, investment
funds managed or financed by private entities or state or local economic
development  organizations,  or  other  similar  or  equivalent  capital
sources, evidenced by written agreements, memorandums of  understanding,
letters  of intent, or other endorsements acceptable to the corporation,
and including readying clients for financial meetings and interviews;
(vi) aid in accessing markets, via bid assistance or  access  programs
that may include but are not limited to literature review, establishment
of   a  resource  documents  room  (physical  or  virtual),  opportunity
notification of local,  state,  and  federal  governmental  and  private
opportunities,  and  identification  of  and  introductions to potential
first customers;
(vii)  physical  office   space   and/or   laboratory   space   and/or
manufacturing space under a written agreement for a period not to exceed
five years for any individual incubator client;
(viii)  policies  requiring  participation by clients in the incubator
program, including disqualification or suspension from the  program  for
failure to participate;
(ix)  criteria  for  acceptance  and  graduation  from  the program or
physical space, and terms and conditions for ongoing  relationships,  if
any, between the incubator and the client;
(x) at least fifty percent of the total incubator budget provided from
sources  other  than  tenant rents and fees and in-kind support from the
sponsoring entity, and must be from sources other than  New  York  state
government agencies;
(xi) an independent advisory council or similar body that includes one
or  more  executive  officers  of  firms  that  have  graduated from the
incubator, local economic  development  professionals,  and  individuals
with  business  and  technology  expertise  in  areas appropriate to the
sector or concentration of clients, and the  mission  and  goal  of  the
incubator;
(xii)  a  professional  management  and  service  delivery  team  with
experience, expertise, or credentials in  management,  entrepreneurship,
business development, or other equivalent areas;
(xiii)  access  by  clients  to  mentoring,  advisory,  or educational
services,  including  classroom  teaching,  from  individuals  who  have
successfully  created,  grown  or  managed  businesses  or  are lawyers,
professional accountants, or individuals who have been in business at an
executive level for at least five years;
(xiv) evidence that the  incubator  is  a  center  of  entrepreneurial
activities  of  a  city,  region,  or  distressed  portion  thereof,  as
documented by programs and activities coordinated with county  or  local
economic  development  organizations,  investor  and  financial clubs or
institutions, or student or youth-oriented entrepreneurial activities;
(xv) a partnership with  other  incubators  in  the  region  to  offer
services  and  opportunities  for  entrepreneurs  and  leverage regional
economic development assets; and
(xvi)  a  plan  to  recruit  minority-  and women-owned businesses for
location and participation with the incubator program.
(c) The corporation,  subject  to  appropriations  provided  for  this
purpose,  may  approve  and  designate  ten New York state incubator hot
spots. Such designees will be required  to  demonstrate  an  affiliation
with  and the application support of at least one college, university or
independent research institution, and that its programs and purposes are
consistent with regional economic development strategies.
3. Designation. (a) The corporation may designate applicants that meet
the requirements of subdivision two of this section as  New  York  state
innovation hot spots or as New York state incubators.
(b)  As  a  condition of maintaining designation, each incubator shall
annually submit to the corporation  in  a  manner  and  according  to  a
schedule established by the corporation:
(i)  updated  information  requested  by  the  corporation pursuant to
subparagraph (iii) of paragraph (a) of subdivision two of this section;
(ii) its strategic plan, as updated along with a brief description  of
its success in meeting the goals of its strategic plan;
(iii)   a  statement  that  the  items  listed  in  paragraph  (b)  of
subdivision two of this section and, in  the  case  of  New  York  state
innovation  hot  spots, paragraph (c) of subdivision two of this section
are still applicable to the operations of the incubator, or  any  change
in applicability;
(iv)  a  list  of business enterprises served by the incubator, and in
the case of New York state innovation hot spots, those clients certified
as a "qualified  entity"  eligible  for  tax  incentives  under  section
thirty-eight of the tax law; and
(v) such additional information as the corporation may require.
(c)  The  corporation  shall  design  simplified  forms  to aid in the
submission of the data  required  in  this  subdivision,  which  may  be
submitted  electronically.  Such  forms  shall state the purposes of the
required data submissions.
(d) The corporation shall evaluate the  operations  of  the  New  York
state  innovation hot spot or the New York state incubator using methods
including but not limited to site visits, reports pursuant to  specified
information,  and  review evaluations. If the corporation is unsatisfied
with the progress of a New York state innovation hot spot or a New  York
state  incubator,  the  corporation  shall  notify such incubator of the
results of its evaluations and  the  findings  of  deficiencies  in  the
incubator's  operations  and  shall  allow such incubator to remedy such
findings in a timely manner. For New York state innovation hot spots  or
New  York  state  incubators  that  receive operating grants pursuant to
paragraph (a) of subdivision five  of  this  section,  such  evaluations
shall  include independent peer review and shall take place no less than
once every three years or more  frequently  at  the  discretion  of  the
corporation.  Such  independent  peer  review  shall result in a written
report  that  includes  programmatic  and  fiscal  evaluation   of   the
incubation program and recommendations for improvement.
(e)  Notwithstanding  any  other  provision  of law to the contrary, a
qualified entity that has previously been designated as a New York state
incubator and has not fully disbursed any  grants  awarded  pursuant  to
this section, shall continue being designated as such by the corporation
for an additional three years.
4.  Audit.  The corporation shall have the authority to audit New York
innovation hot spots, New York state incubators and  clients  designated
by such hot spots as qualified entities.
5.  Grants.  (a)  Operating grants. A program designated as a New York
state innovation hot spot or as a New  York  state  incubator  shall  be
eligible  for  an  operating  grant in an amount to be determined by the
corporation from funds appropriated to the corporation for such purpose,
provided however that:
(i) Any such grant shall be matched  on  a  two-to-one  basis  by  the
institution  receiving  the funds and collaborative partners in the form
of cash or in-kind personnel, equipment, material donations,  and  other
facility  and  operations expenditures, provided that no more than fifty
percent of such match shall be in-kind;
(ii) A program  applying  for  a  grant  shall  demonstrate  financial
stability  and  long  term viability, as provided in subparagraph (i) of
paragraph (b) of subdivision two of this section;
(iii) A grant recipient shall agree to provide data as required to the
corporation and shall agree to conform to best practices as outlined  by
state and/or national business incubator associations;
(iv)  Failure  to  abide by the requirements of this subdivision or to
cure a default after review and agreement  with  the  corporation  shall
result  in  loss  of the grant and disqualification of the designee as a
New York state innovation hot spot or as a New York state incubator; and
(v) Provided that a portion of the grants shall be awarded to the  New
York state innovation hot spots and the New York state incubators.
(b)  The  corporation shall make entities designated as New York state
innovation  hot  spots  or  as  New  York  state  incubators  aware   of
opportunities for funding or grants by or through the corporation or the
department of economic development.
(c)  No  deduction.  In  addition  to  the  foregoing requirements, an
incubator sponsor shall agree to dedicate all funds from any  grants  or
support  received  pursuant to this subdivision to the operations of the
incubator without deductions for indirect costs of such sponsor.  In  no
case  shall  an incubator sponsor agree to provide less than eighty-five
percent of all funds  received  pursuant  to  this  subdivision  to  the
operations of the incubator without exception.
6.  Other  assistance.  The  corporation  may  make  such  other  aid,
assistance, and resources available to New  York  state  innovation  hot
spots  and  New York state incubators and their clients as it shall deem
useful and appropriate for the furtherance of the purposes of this  act,
including without limitation technical assistance, aid in marketing, aid
in  reaching  and  providing  entrepreneurship training opportunities to
such marginalized groups  as  those  composed  of  individuals  who  are
minority, female, disabled, or poor, and others, curriculum development,
and  other  services  and  resources.  The  corporation  shall also seek
assistance from other state agencies in the development  of  procurement
and  marketing  resources  and training opportunities for New York state
innovation hot spots and New York state incubators and their clients.
7. Association of incubators.  The  corporation  may  consult  with  a
statewide  entity  which  is  a membership association of incubators and
others and which has expertise in providing services to  incubators  for
the  purpose  of  providing  services to entities designated as New York
state innovation hot spots and New York state incubators and to entities
seeking to apply or applying to become New  York  state  innovation  hot
spots  and  New York state incubators or which otherwise are included as
recipients of services pursuant to this  section.  Such  services  shall
include advising concerning best practices of incubation and development
of  plans  to  incorporate  and integrate such practices, development of

data  concerning  incubation  in  this  state  and  recommendations  for
improvement,  aid  in  marketing  and  event sponsorship, and such other
services as the corporation shall deem necessary and appropriate to  the
strengthening of business incubation in this state.
8.  New York state innovation hot spots may certify clients which meet
the requirements of  subdivision  nine  of  this  section  as  qualified
entities  eligible  for  New  York state innovation hot spot program tax
benefits pursuant to section  thirty-eight  of  the  tax  law.  Business
enterprises  of incubators designated as New York state incubators under
paragraph (a) of subdivision one of this section may be certified by the
New York state innovation hot spot if the incubator has entered  into  a
memorandum  of  understanding  with such hot spot establishing a process
and threshold for the provision  of  innovation  hot  spot  benefits  to
qualified enterprises or the hot spot is providing demonstrable services
or  assistance  to the business enterprise in addition to those provided
by the incubator.
9. "Qualified entity" shall mean a business enterprise that is:
(i) in the formative stage of development;
(ii) located in New York state;
(iii) either: (A) any corporation, except a corporation which:
(1) over fifty percent of the number of shares of stock entitling  the
holders  thereof  to  vote  for the election of directors or trustees is
owned or controlled,  either  directly  or  indirectly,  by  a  taxpayer
subject  to  tax  under the following provisions of the tax law: article
nine-A; section one hundred  eighty-three  or  one  hundred  eighty-four
former section of article nine; or article thirty-three; or
(2)  is  substantially  similar  in  operation  and  in ownership to a
business entity (or entities) taxable or previously  taxable  under  the
following provisions of the tax law: article nine-A; section one hundred
eighty-three,  one  hundred  eighty-four,  former  section  one  hundred
eighty-five or former section one hundred eighty-six  of  article  nine;
former  article  thirty-two; article thirty-three; article twenty-three,
or would have been subject to tax under such  article  twenty-three  (as
such article was in effect on January first, nineteen hundred eighty) or
the  income  (or  losses)  of which is (or was) includable under article
twenty-two; or
(B) a sole proprietorship, partnership, limited  partnership,  limited
liability  company,  or  New  York  subchapter S corporation that is not
substantially similar in operation and in ownership to a business entity
(or entities) taxable, or previously taxable, under  article  nine-A  of
the  tax law, section one hundred eighty-three, one hundred eighty-four,
former section one hundred eighty-five or  former  section  one  hundred
eighty-six  of article nine of the tax law, former article thirty-two or
article thirty-three of the tax law, article twenty-three of the tax law
or which would have been subject to tax under such article  twenty-three
(as  such  article  was  in  effect  on  January first, nineteen hundred
eighty) or the income (or losses) of which is (or was) includable  under
article twenty-two of the tax law; and
(iv)  is  certified  by  a New York state innovation hot spot as being
approved to locate in, or  be  part  of  a  virtual  incubation  program
operated by, such New York innovation hot spot.
10.  The  corporation may establish guidelines concerning this program
to implement the purposes of this act.
§ 16-w. Beginning farmers NY fund. 1. The beginning farmers NY fund is
hereby created. The purpose of the beginning farmers NY fund is to  make
grants   to  eligible  applicants,  to  support  beginning  farmers  and
encourage them to consider farming as a career, resulting in the  growth

of  agribusiness  within  the state and the concomitant tax revenues for
the state.
2.  The  corporation  shall consult with the department of agriculture
and markets in order to establish such criteria governing the  award  of
grants as authorized herein, as the corporation and such department deem
necessary.  Such  criteria shall include, but not be limited to, farmers
who have not produced an "agricultural product" as  defined  by  section
three  hundred twenty-eight of the agriculture and markets law, for more
than ten consecutive years, and who will  materially  and  substantially
participate in the production of an agricultural product within a region
of the state.
3. Appropriations to the beginning farmers NY fund may be used for the
following purposes:
(a)   to  assist  farmers  in  demonstrating  innovative  agricultural
techniques including, but not limited to, organic farming and  specialty
crops.
(b)  capital grants in accordance with a business plan to improve farm
profitability. Upon completion of such business plan,  recipients  shall
be  eligible  for capital grants to enhance the profitability of farming
operations. Such grants may be used  for  purposes  including,  but  not
limited to, the purchase of machinery or the construction or improvement
of  physical  structures.  Any  capital  grant  shall  be  issued with a
one-to-one match between the state and recipient.
4. The corporation shall  establish  a  competitive  process  for  the
evaluation  of  applicants  for  the  beginning  farmers  NY  fund. When
awarding funds pursuant to this section, the  corporation  shall  ensure
that  applicants  meet  the  criteria and requirements determined by the
corporation pursuant to this section.
5. The beginning farmers NY fund shall not invest  an  amount  in  any
single  beneficiary  that exceeds fifty thousand dollars, subject to any
exceptions to be established by guidelines of the corporation.
6.  Notwithstanding  any  provision  of  law  to  the  contrary,   the
corporation  may  establish  a program fund for program use and pay into
such fund any eligible funds  available  to  the  corporation  from  any
source, including moneys appropriated by the state.
7.  The  corporation  shall  submit  a  report  annually  on  December
thirty-first to the director of the budget, the temporary  president  of
the  senate,  the  speaker  of  the assembly, the minority leader of the
senate and the minority leader of the assembly detailing (a)  the  total
amount  of  funds  committed to each applicant; (b) the location of each
applicant; and (c) such  other  information  as  the  corporation  deems
necessary.
8.  The  corporation  is hereby authorized to establish guidelines for
the administration of the program, including application procedures  and
disbursement  terms,  and to provide for the repayment of funds received
by the beneficiary if the beneficiary leaves New York state or otherwise
ceases farming activity within a period of time to be established by the
corporation.
* § 16-x. Dairy promotion act. 1. Declaration of  policy.  (a)  It  is
hereby  declared  that  the  mission  of the corporation is to promote a
vigorous and growing state economy. In implementing  this  mission,  the
corporation  has  undertaken  a  vigorous campaign to market the state's
assets and, by carrying  out  the  provisions  of  this  section,  would
further this mission by promoting the state's dairy industry.
(b)  It  is further declared that the continued existence of the state
dairy industry, and the continued production of milk  on  the  farms  of
this  state,  is  of  vast  economic  importance to the state and to the
health and welfare of the inhabitants thereof; that it is essential,  in

order  to  assure such continued production of milk and its handling and
distribution, that prices to producers be such as to  return  reasonable
costs  of  production, and at the same time to assure an adequate supply
of  milk  and  dairy  products to consumers at reasonable prices; and to
these ends it is essential  that  consumers  and  others  be  adequately
informed  as  to  the  dietary  needs  and  advantages of milk and dairy
products and as to the economies resulting from  the  use  of  milk  and
dairy  products,  and  to  command for milk and dairy products, consumer
attention and demand consistent with their importance and value.  It  is
further declared that continued decline in the consumption of fluid milk
and some other dairy products will jeopardize the production of adequate
supplies  of  milk  and  dairy  products because of increasing surpluses
necessarily returning less to producers;  and  that  continued  adequate
supplies  of  milk  and  dairy  products is a matter of vital concern as
affecting the health and general welfare of the people of this state. It
is therefore declared to be the legislative intent  and  policy  of  the
state:
(i)  To  enable  milk producers and others in the dairy industry, with
the aid of the state, to more effectively  promote  the  consumption  of
milk and dairy products,
(ii)  To  provide  methods  and  means  for the development of new and
improved dairy products, and to promote their use, and
(iii) To this  end,  to  eliminate  the  possible  impairment  of  the
purchasing  power  of  the milk producers of this state and to assure an
adequate supply of milk for consumers at reasonable prices.
2. Definitions. As used in this section the following terms shall have
the following meanings:
(a) "President" means the president of the corporation.
(b) "Dairy products" means milk and products  derived  therefrom,  and
products of which milk or a portion thereof is a significant part.
(c)  "Producer"  means  any person in this state who is engaged in the
production of milk or who causes milk to be produced for any  market  in
this or any other state.
(d)  "Advisory  board" means the persons appointed by the commissioner
from nominations from producers to assist the president in administering
a dairy promotion order.
(e) "Milk dealer"  means  any  person  who  purchases  or  handles  or
receives   or   sells   milk,   including   individuals,   partnerships,
corporations, cooperative associations, and  unincorporated  cooperative
associations.
(f)  "Dairy  promotion  order" means an order issued by the president,
pursuant to the provisions of this section.
(g) "Cooperative" means an association or federation or cooperative of
milk producers organized under the laws of New York state, or any  other
state,  having agreements with their producer members to market, bargain
for or sell the milk of such producers, and is actually  performing  one
or more of these services in the marketing of the milk produced by their
members,  through  the  cooperative  or  through  a  federation  of milk
cooperatives in which the cooperative has membership.
(h) "State" means the state of New York.
(i) "Department" means the New York state  department  of  agriculture
and markets.
(j)  "Commissioner"  means  the  commissioner  of  the  New York state
department of agriculture and markets.
3. Powers and  duties  of  the  president.  (a)  The  president  shall
administer  and  enforce  the  provisions  of  this section. In order to
effectuate the  declared  policy  of  this  section  the  president,  in

consultation  with the commissioner and producers, may, after due notice
and hearing, make and issue a dairy promotion order, or orders.
(b)  Such order or orders shall, in consultation with the commissioner
and producers, be issued and amended or terminated  in  accordance  with
the following procedures:
(i)  Before any such order may become effective it must be approved by
fifty-one per centum of the producers of milk voting in  the  referendum
for  the  area  to be regulated by such order. Such referendum shall not
constitute valid approval  unless  fifty-one  per  centum  of  all  milk
producers for the area to be regulated vote in the referendum. Producers
may   vote  by  individual  ballot  or  through  their  cooperatives  in
accordance with the following procedures:
(A) Cooperatives may submit written approval of such  order  within  a
period  of  one  hundred twenty days after the president has announced a
referendum on a proposed order, for such producers who  are  listed  and
certified  to  the  president  as members of such cooperative; provided,
however, that any cooperative before submitting  such  written  approval
shall give at least sixty days prior written notice to each producer who
is  its  member,  of  the  intention  of the cooperative to approve such
proposed order, and further provide that if such  cooperative  does  not
intend  to  approve  such proposed order, it shall likewise give written
notice to each such producer who is its member, of its intention not  to
approve of such proposed order.
(B)  Any producer may obtain a ballot from the president so that he or
she may register his or her own approval or disapproval of the  proposed
order.
(C) A producer who is a member of a cooperative which has notified him
or  her  of its intent to approve or not to approve of a proposed order,
and who obtains a ballot and with  such  ballot  expresses  his  or  her
approval  or  disapproval  of  the  proposed  order,  shall  notify  the
president as to the name of the cooperative of which  he  or  she  is  a
member,  and  the  president  shall remove such producer's name from the
list certified by such cooperative.
(D) In order to ensure that all milk producers are informed  regarding
a  proposed order, the president shall notify all milk producers that an
order is being considered and that each producer may register his or her
approval or disapproval with the president either  directly  or  through
his or her cooperative.
(E)  The president shall consult with the milk producers and establish
a referendum advisory committee to assist and advise him or her  in  the
conduct  of  the  referendum.  Such  committee  shall  review referendum
procedures and the tabulation of results, and shall advise the president
of its findings. The final certification of the referendum results shall
be made by the  president.  The  committee  shall  be  selected  by  the
commissioner  in  consultation  with the president, and shall consist of
not less than three members, none of  whom  shall  be  persons  directly
affected  by  the promotion order being voted upon. Two members shall be
representatives of general farm organizations  which  are  not  directly
affected  by  the  order  being voted upon. The members of the committee
shall not  receive  a  salary  but  shall  be  entitled  to  actual  and
reasonable expenses incurred in the performance of their duties.
(ii)  The  president,  in consultation with the commissioner, may, and
upon written petition of not less than ten per centum of  the  producers
in   the   area,   either   as   individuals   or   through  cooperative
representation, shall, call a hearing to amend or terminate such  order,
and  any  such  amendment  or  termination  shall be effective only upon
approval of fifty-one per centum of the producers of milk for  the  area

regulated  participating  in  a  referendum vote as provided pursuant to
this paragraph.
(c)  The president, consulting with and seeking the advice and consent
of the advisory board, shall  administer  and  enforce  any  such  dairy
promotion order while it is in effect, for the purpose of:
(i)  Encouraging  the  consumption  of  milk  and  dairy  products  by
acquainting consumers and others with  the  advantages  and  economy  of
using more of such products,
(ii)  Protecting  the  health  and welfare of consumers by assuring an
adequate supply of milk and dairy products,
(iii) Providing for research programs  designed  to  develop  new  and
improved dairy products,
(iv)  Providing  for  research programs designed to acquaint consumers
and the public generally with the effects of the use of milk  and  dairy
products on the health of such consumers,
(v)  Carrying  out,  in  other ways, the declared policy and intent of
this section.
4. Provisions of dairy promotion orders. Any dairy promotion order  or
orders may contain, among others, any or all of the following:
(a)  Provision for levying an assessment against all producers subject
to the regulation for the purpose of carrying out the provisions of such
order and to pay the cost of administering and enforcing such order.  In
order  to collect any such assessments, provision shall be made for each
milk dealer who receives milk from producers to  deduct  the  amount  of
assessment  from  moneys  otherwise  due  to  producers  for the milk so
delivered. The rate of such assessment shall not exceed two percent  per
hundredweight  of  the gross value of the producers' milk, and there may
be credited against any such assessment the  amounts  per  hundredweight
otherwise  paid  by  any  producer  covered  by  the  order by voluntary
contribution or otherwise pursuant to any other federal  or  state  milk
market  order for any similar research promotion or advertising program.
Notwithstanding the provisions of paragraph (b) of subdivision three  of
this  section,  the  president,  upon  written  petition of no less than
twenty-five percent of producers in the area, either as  individuals  or
through   cooperative  representation,  and  in  consultation  with  the
commissioner, may call a hearing for the sole purpose of establishing  a
new rate of assessment hereunder and may submit a proposed change in the
rate  of assessment to the producers for acceptance or rejection without
otherwise affecting the order. The producers in the area may vote on the
proposed   rate   either   as   individuals   or   through   cooperative
representation.   Notwithstanding   the  foregoing  provisions  of  this
paragraph and of paragraph (b) of subdivision three of this section,  or
the  provisions  of  any order promulgated pursuant to this section, the
rate of assessment,  for  any  period  during  which  a  dairy  products
promotion  and  research order established pursuant to the federal dairy
and tobacco adjustment act of 1983 is in effect, shall not be less  than
an  amount  equal to the maximum credit which producers participating in
this state's dairy products promotion or  nutrition  education  programs
may receive pursuant to subdivision (g) of Sec. 113 of said federal act.
(b)  Provision  for  payments to organizations engaged in campaigns by
advertisements or otherwise, including participation in similar regional
or national plans or campaigns to promote the increased  consumption  of
milk  and  dairy  products,  to  acquaint  the  public  with the dietary
advantages of milk and dairy products and  with  the  economy  of  their
inclusion  in  the  diet  and  to  command, for milk and dairy products,
consumer attention consistent with their importance and value.
(c) Provision for payments to institutions or organizations engaged in
research leading to the development of new or improved dairy products or

research with respect to the value of milk and  dairy  products  in  the
human diet.
(d) Provision for requiring records to be kept and reports to be filed
by  milk  dealers  with respect to milk received from producers and with
respect to assessments on the milk of such producers.
(e) Provision for the auditing of the records of such milk dealers for
the purpose of verifying payment of producer assessments.
(f) Provision for an advisory board pursuant to subdivision 10 of this
section.
(g) Provision for the president to retain money  collected  under  any
marketing order issued pursuant to this section, to defray the costs and
expenses in the administration thereof.
(h)  Such  other  provisions  as  may  be  necessary to effectuate the
declared policies of this section.
5. Matters to be considered. In carrying out the  provisions  of  this
section and particularly in determining whether or not a dairy promotion
order   shall  be  issued,  the  president,  in  consultation  with  the
commissioner,  shall  take  into  consideration,  among  others,   facts
available to him or her with respect to the following:
(a)  The  total  production  of milk in the area and the proportion of
such milk being utilized in fluid form and in other products,
(b) The prices being received for milk by producers in the area,
(c) The level of consumption per capita for fluid milk  and  of  other
dairy products,
(d) The purchasing power of consumers,
(e)  Other  products  which  compete  with milk and dairy products and
prices of such products.
6. Interstate orders for compacts. The commissioner is  authorized  to
confer  and  cooperate with the legally constituted authorities of other
states and of the  United  States  with  respect  to  the  issuance  and
operation  of  joint  and  concurrent  dairy  promotion  orders or other
activities tending to carry out the declared  intent  of  the  act.  The
commissioner  may  join  with such other authorities in conducting joint
investigations, holding joint hearings and issuing joint  or  concurrent
order or orders complementary to those of the federal government and the
president,  after  consulting  with  the  commissioner,  shall  have the
authority to employ or designate a joint  agent  or  joint  agencies  to
carry out and enforce such joint, concurrent or supplementary orders.
7.  Prior  assessments.  Prior  to  the  effective  date  of any dairy
promotion  order  as  provided  in  this  section,  the  president,   in
consultation   with  the  commissioner,  may  require  that  cooperative
associations which have petitioned for  such  an  order  and  that  have
approved of the issuance of such an order, to deposit with the president
such  amounts  as  he or she may deem necessary to defray the expense of
administering  and  enforcing  such  order  until  such  time   as   the
assessments  as  herein  before  provided are adequate for that purpose.
Such funds shall be received, deposited and disbursed by  the  president
in  the  same  manner  as other funds received by him or her pursuant to
this section and the president shall  reimburse  those  who  paid  these
prior  assessments  from  other funds received by him or her pursuant to
this section.
8. Status of funds. Any moneys collected under any market order issued
pursuant to this section shall not be deemed to be state or  corporation
funds  and  shall  be  deposited  in  a  bank or other depository of the
corporation,  approved  by  the  president,  allocated  to  each   dairy
promotion  order under which they were collected, and shall be disbursed
by the president  only  for  the  necessary  expenses  incurred  by  the
president  with  respect  to each separate order, all in accordance with

the rules and regulations of the president. All such expenses  shall  be
subject to audits by the state comptroller. Any moneys remaining in such
fund  allocable  to  a  particular  order, after the termination of such
order  and  not  required  by  the  president  to defray the expenses of
operating such order, may in the discretion of the president be refunded
on a pro-rata basis to all persons from whom assessments  therefor  were
collected;  provided,  however,  that  if  the  president finds that the
amounts so  refundable  are  so  small  as  to  make  impracticable  the
computation  and  refunding  of  such moneys, the president may use such
moneys  to  defray  the  expenses  incurred  by  him  or  her   in   the
promulgation,  issuance,  administration  or  enforcement  of  any other
similar dairy promotion order or in the absence of any other such  dairy
promotion  order,  the president may pay such moneys to any organization
or institution as provided in paragraph (b) or (c) of  subdivision  four
of this section.
9. Budget. The commissioner, in consultation with the president, shall
prepare a budget for the administration and operating costs and expenses
including  advertising  and  sales  promotion when required in any dairy
promotion order executed hereunder and to provide for the collection  of
such  necessary  fees or assessments to defray costs and expenses, in no
case to exceed two percent per hundredweight of the gross value of  milk
marketed by producers in the area covered by the order.
10.  Advisory  board. (a) Any dairy promotion order issued pursuant to
this section shall provide for the establishment of an advisory board to
advise and assist the president in the administration of such order. The
president shall administer and enforce any such  dairy  promotion  order
while  it  is  in effect, consulting with the advisory board and seeking
its advice and consent. This board shall consist of not less  than  five
members  and  shall  be  appointed  by the commissioner from nominations
submitted by producers marketing milk in the area  to  which  the  order
applies.  Nominating  procedure, qualification, representation, and size
of the advisory board shall be prescribed in the order  for  which  such
board was appointed.
(b) No member of an advisory board shall receive a salary but shall be
entitled  to  his  or  her actual and reasonable expenses incurred while
performing his or her duties as authorized in this section.
(c) The duties and responsibilities of the  advisory  board  shall  be
prescribed  by the president, in consultation with the commissioner, and
he or  she  shall  specifically  delegate  to  the  advisory  board,  by
inclusion  in  the  dairy  promotion  order  the  following  duties  and
responsibilities:
(i) The recommendation to the president of  administrative  rules  and
regulations relating to the order.
(ii)  Recommending  to  the  president such amendments to the order as
deemed advisable.
(iii)  The  preparation  and  submission  to  the   commissioner,   in
consultation with the president, of an estimated budget required for the
proper operation of the order.
(iv) Recommending to the president methods for assessing producers and
methods for collecting the necessary funds.
(v)  Assisting  the  president  in  the  collection  and  assembly  of
information and data necessary for  the  proper  administration  of  the
order.
(vi) The performance of such other duties in connection with the order
as the president shall designate.
11.  Rules  and  regulations; enforcement. (a) The president may, with
the advice and consent of the advisory board, make and issue such  rules
and  regulations  as  may  be necessary to effectuate the provisions and

intent of this section and  to  enforce  the  provisions  of  any  dairy
promotion order, all of which shall have the force and effect of law.
(b) The president, in consultation with the commissioner may institute
such  action  at  law  or  in  equity as may appear necessary to enforce
compliance  with  any  provision  of  this  section,  or  any  rule   or
regulation,   or   dairy   promotion  order  committed  to  his  or  her
administration, and may apply for relief by injunction if  necessary  to
protect  the  public interest without being compelled to allege or prove
that an adequate remedy at law does not exist. Such application shall be
made to the supreme court in any district  or  county  provided  in  the
civil  practice  law  and  rules,  or  to the supreme court in the third
judicial district.
12. Cooperation by the  department.  The  president  may  request  and
receive,  within  ninety  days  of such request from the department such
assistance, information and cooperation as  may  be  necessary  for  the
corporation  to  provide  services with respect to the administration of
the procedures set forth for the issuance, termination or  amendment  of
any  dairy  promotion order and/or the administration of any such order.
The corporation shall retain an amount equal to the expenses incurred by
the corporation in performing its duties pursuant to  this  section  and
reimburse the department an amount equal to the expenses incurred by the
department  in  supplying  such  services,  subsequent to submission and
audit of a voucher therefor. Such reimbursement  shall  not  exceed  the
total  amount  of  funds  collected  by the corporation pursuant to this
section less the reasonable expenses  incurred  by  the  corporation  in
performing its duties pursuant to this section.
13.  Indemnification.  The  state  shall  defend,  indemnify  and hold
harmless the corporation, its directors, officers, and  employees,  from
and  against  any  and  all  claims, demands, causes of action, damages,
costs and expenses whatsoever arising directly or  indirectly  from,  or
relating  to,  the  administration  of a dairy promotion order issued or
administered pursuant to this section. In connection with the foregoing,
the corporation shall give the state (a) prompt written  notice  of  any
action,  claim  or  threat  of  suit,  (b) the opportunity to take over,
settle or defend such action, claim or suit at the state's sole expense,
and (c) assistance in the defense of any such action at the  expense  of
the state.
14.  Contractual provisions. The corporation may contract for services
with respect to the implementation of this section  in  accordance  with
the  corporation's  policies, procedures and guidelines. Notwithstanding
section 2879 of the public authorities law  or  any  other  law  to  the
contrary,  any  such  contract  may  be procured by the corporation on a
sole-source basis, and shall  not  be  subject  to  competitive  bid  or
competitive request for proposal requirements.
* NB Repealed July 31, 2026
* §  16-y.  Marketing of agricultural products. Declaration of policy.
(a) It is hereby declared that the mission  of  the  corporation  is  to
promote  a  vigorous  and  growing  state  economy. In implementing this
mission, the corporation has undertaken a vigorous  campaign  to  market
the  state's  assets and by carrying out the provisions of this section,
would further this mission by promoting the development of  markets  for
agricultural products grown and produced in the state.
(b)  It  is  further  declared  that  the  marketing  of  agricultural
commodities and aquatic products in this state, in excess of  reasonable
and  normal  market  demands  therefor;  disorderly  marketing  of  such
commodities; improper preparation for market and lack of uniform grading
and classification of agricultural  commodities  and  aquatic  products;
unfair  methods  of competition in the marketing of such commodities and

the inability of individual producers to develop new and larger  markets
for   agricultural  commodities  and  aquatic  products,  result  in  an
unreasonable and unnecessary economic waste of the  agricultural  wealth
of this state. Such conditions and the accompanying waste jeopardize the
future  continued production of adequate food supplies for the people of
this and other states. These  conditions  vitally  concern  the  health,
safety and general welfare of the people of this state.
It  is  therefore  declared  the legislative purpose and the policy of
this state:
(i) To enable agricultural producers and  aquatic  producers  of  this
state,  with  the  aid  of  the state, more effectively to correlate the
marketing of their agricultural commodities and  aquatic  products  with
market demands therefor.
(ii)  To  establish  orderly,  efficient  and  equitable  marketing of
agricultural commodities and aquatic products.
(iii) To  provide  for  uniform  grading  and  proper  preparation  of
agricultural commodities and aquatic products for market.
(iv)  To  provide  methods  and  means  for the development of new and
larger  markets  for  agricultural  commodities  and  aquatic   products
produced in New York.
(v)  To  eliminate  or  reduce  the economic waste in the marketing of
agricultural commodities and aquatic products.
(vi) To eliminate unjust impairment of the purchasing power of aquatic
producers and the agricultural producers of this state; and
(vii) To aid agricultural and  aquatic  producers  in  maintaining  an
income at an adequate and equitable level.
2.  Definitions.  (a)  "Agricultural  commodity"  means  any  and  all
agricultural, horticultural, vineyard products, corn  for  grain,  oats,
soybeans,  barley,  wheat,  poultry or poultry products, bees, maple sap
and pure maple products produced therefrom, christmas trees,  livestock,
including  swine,  and  honey, sold in the state either in their natural
state or as processed by the producer thereof but does not include milk,
timber or timber products, other than christmas trees, all hay, rye  and
legumes except for soybeans.
(b)  "Aquaculture"  means  the  culture,  cultivation  and  harvest of
aquatic plants and animals.
(c) "Aquatic products" means  any  food  or  fiber  products  obtained
through  the  practice  of  aquaculture,  including  mariculture;  or by
harvest from the sea when such products are cultured or landed  in  this
state.  Such  products  include  but are not limited to fish, shellfish,
seaweed or other water based plant life.
(d) "Producer" means any person  engaged  within  this  state  in  the
business  of  producing,  or  causing to be produced for any market, any
agricultural commodity or aquatic product.
(e) "Handler" means any person engaged in the  operation  of  packing,
grading,   selling,  offering  for  sale  or  marketing  any  marketable
agricultural commodities or aquatic products, who  as  owner,  agent  or
otherwise ships or causes an agricultural commodity to be shipped.
(f)  "Processor"  means  any  person  engaged  within  this  state  in
processing, or in the operation of receiving, grading, packing, canning,
freezing, dehydrating, fermenting, distilling,  extracting,  preserving,
grinding,  crushing, or in any other way preserving or changing the form
of an agricultural  product  or  aquatic  product  for  the  purpose  of
marketing  such  commodity  but  shall  not  include a person engaged in
manufacturing from an agricultural commodity or aquatic product  another
and different product.
(g)  "Distributor"  means  any  person  engaged  within this state, in
selling, offering for sale, marketing or  distributing  an  agricultural

commodity  or  aquatic product which he or she has purchased or acquired
from a producer or other person or which  he  or  she  is  marketing  on
behalf of a producer or other person, whether as owner, agent, employee,
broker  or  otherwise,  but  shall  not  include a retailer, except such
retailer who purchases or acquires from, or handles  on  behalf  of  any
producer  or  other person, an agricultural commodity or aquatic product
subject to regulation by the marketing agreement or order covering  such
commodity.
(h) "President" means the president of the corporation.
(i)  "Marketing  agreement"  means an agreement entered into, with the
approval of the president, by producers  with  distributors,  processors
and   handlers   regulating   the  preparation,  sale  and  handling  of
agricultural commodities or aquatic products.
(j) "Marketing order" means an order issued by the president  pursuant
to  this  section,  prescribing  rules  and  regulations  governing  the
marketing for processing, the distributing, the sale of, or the handling
in any manner of any agricultural commodity or aquatic product  sold  in
this state during any specified period or periods.
(k)  "Commissioner"  means  the  commissioner  of  the  New York state
department of agriculture and markets.
(l) "Department" means the New York state  department  of  agriculture
and markets.
3.  Powers and duties of the president. (a) In order to effectuate the
declared policy of this section, the president, in consultation with the
commissioner, may, after due notice and opportunity for hearing, approve
marketing agreements, which  marketing  agreements  shall  thereupon  be
binding upon the signatories thereto exclusively.
(b)  The  president,  in  consultation  with  the commissioner and the
producers, may make and issue marketing orders,  after  due  notice  and
opportunity for hearing, subject to:
(i)  approval  of not less than sixty-six and two-thirds per centum of
the producers participating in a referendum in the area affected, or
(ii) approval of not less than sixty-five per centum of the  producers
participating  in  a  referendum  vote, in the area affected, and having
marketed not less than fifty-one per centum of the total quantity of the
commodity which was marketed in the next preceding,  ordinary  marketing
season by all producers that voted in the referendum, or
(iii)  approval of not less than fifty-one per centum of the producers
participating in a referendum vote, in the  area  affected,  and  having
marketed  not  less  than sixty-five per centum of the total quantity of
the commodity  which  was  marketed  in  the  next  preceding,  ordinary
marketing  season  by  all  producers  that voted in the referendum. The
president may, and upon written petition duly signed by twenty-five  per
centum  of the producers in the area amend or terminate such order after
due notice and opportunity for hearing, but subject to the  approval  of
not  less  than  fifty  per  centum of such producers participating in a
referendum vote.
(c) The president, consulting with and seeking the advice and  consent
of  the advisory board shall administer and enforce any marketing order,
while it is in effect, to:
(i) Encourage and maintain stable prices  received  by  producers  for
such  agricultural  commodity  and  aquatic  product at a level which is
consistent with the provisions and aims of this act.
(ii) Prevent the unreasonable or unnecessary waste of  land  or  water
based wealth.
(iii)  Protect  the  interests  of  consumers  of  such  commodity, by
exercising the powers of this section to such extent as is necessary  to
effectuate the purposes of this act.
(iv) Provide consultation to the commissioner who shall budget for the
administration  and operating costs and expenses, seeking the advice and
consent of the advisory board, including advertising and sales promotion
when required in any marketing  agreement  or  order  executed  in  this
section  and  to  provide  for  the  collection  and  retention  of such
necessary fees to defray such costs and expenses, in no case  to  exceed
five  percent  of  the  gross dollar volume of sales or dollar volume of
purchases or amounts handled, to be collected from each  person  engaged
in  the  production,  processing,  distributing  or  the handling of any
marketable agricultural commodity and aquatic product produced or landed
in this state and  directly  affected  by  any  marketing  order  issued
pursuant to this section for such commodity.
(v)  Confer  and cooperate with the legally constituted authorities of
other states and the United States.
(d) Any marketing agreement or order issued by the president  pursuant
to  this section, in consultation with the commissioner, may contain any
or all of the following:
(i) Provisions for determining the existence and extent of the surplus
of any agricultural commodity, or of any grade, size or quality thereof,
and providing for the regulation and disposition of such surplus.
(ii) Provisions for limiting the total quantity  of  any  agricultural
product,  or  of  any  grade  or  grades,  size  or sizes, or quality or
portions or combinations thereof,  which  may  be  marketed  during  any
specified  period  or periods. Such total quantity of any such commodity
so regulated shall not be less than the  quantity  which  the  president
shall  find  is  reasonably  necessary  to  supply  the market demand of
consumers for such commodity.
(iii) Provisions regulating to the period, or  periods,  during  which
any  agricultural  commodity,  or  any grade or grades, size or sizes or
quality or portions or combinations of such commodity, may be marketed.
(iv) Provisions for the establishment of uniform  grading,  standards,
and  inspection  of any agricultural commodity delivered by producers or
other persons to handlers, processors, distributors or  others  engaging
in  the  handling  thereof,  and  for  the  establishment  of grading or
standards  of  quality,  condition,  size,  maturity  or  pack  for  any
agricultural commodity, and the inspection and grading of such commodity
in  accordance  with  such  grading or standards so established; and for
provisions that no producer, handler, processor or  distributor  of  any
agricultural commodity for which grading or standards are so established
may,  except as otherwise provided in such marketing agreement or order,
sell, offer for sale, process, distribute or otherwise handle  any  such
commodity whether produced within or without this state, not meeting and
complying  with  such established grading or standards. For the purposes
of this section, the federal-state inspection service shall perform  all
inspections made necessary by such provisions.
(v)  Provisions for the establishment of research programs designed to
benefit a specified commodity or New York agriculture in general.
(vi) Provisions for the president to retain money collected under  any
marketing  order issued pursuant to this section to defray the costs and
expenses in the administration thereof.
(vii) Such other provisions as may  be  necessary  to  effectuate  the
declared policies of this section.
(viii)  Provisions  to  establish  marketing  promotion  and  research
programs for  aquatic  products  which  may  include  subparagraphs  (i)
through (vii) of this paragraph.
(e)  The president, seeking the advice and the consent of the advisory
board, may temporarily suspend the operation of an  effective  marketing
order  for  a  continuing  period  of  not  longer  than one growing and

marketing season, if the purposes of this section are deemed unnecessary
during such season.
(f)  In  carrying  out the purposes of this section, the president, in
consultation with the commissioner and consulting with and  seeking  the
advice  and consent of the advisory board, shall take into consideration
any and all facts available to him or her with respect to the  following
economic factors:
(i)   The  quantity  of  such  agricultural  commodity  available  for
distribution.
(ii) The quantity of such agricultural commodity normally required  by
consumers.
(iii) The cost of producing such agricultural commodity.
(iv) The purchasing power of consumers.
(v)  The  level  of prices of commodities, services and sections which
the farmers commonly buy.
(vi) The level of prices of other commodities which  compete  with  or
are utilized as substitutes for such agricultural commodity.
(g)  The  execution  of  such  marketing agreements shall in no manner
affect the issuance, administration  or  enforcement  of  any  marketing
order  provided for in this section. The president, in consultation with
the commissioner, may issue such marketing  order  without  executing  a
marketing agreement or may execute a marketing agreement without issuing
a  marketing order covering the same commodity. The president, in his or
her discretion,  in  consultation  with  the  commissioner  may  hold  a
concurrent  hearing  upon  a proposed marketing agreement and a proposed
marketing order in  the  manner  provided  for  giving  due  notice  and
opportunity  for  hearing  for  a  marketing  order  as provided in this
section.
(h) Prior to the issuance, amendment or termination of  any  marketing
order,  the  president  may  require  the  applicants for such issuance,
amendment or termination to deposit with him or her such amount as he or
she may deem necessary to defray the expenses of  preparing  and  making
effective amending or terminating a marketing order. Such funds shall be
received, deposited and disbursed by the president in the same manner as
other  fees  received by him or her under this section and, in the event
the application for adoption, amendment or termination  of  a  marketing
order  is  approved  in  a referendum, the president shall reimburse any
such applicant in the amount of any such  deposit  from  any  unexpended
monies collected under the marketing order affected by such referendum.
(i)  Any  moneys  collected  by the president pursuant to this section
shall not be deemed state or corporation funds and shall be deposited in
a  bank  or  other  depository  of  the  corporation,  approved  by  the
president,  allocated  to  each  marketing  order  under  which they are
collected, and  shall  be  disbursed  by  the  president  only  for  the
necessary  expenses  incurred by the president with respect to each such
separate  marketing  order,  all  in  accordance  with  the  rules   and
regulations  of the president. All such expenditures shall be subject to
audits by the state comptroller.  Any  moneys  remaining  in  such  fund
allocable to any particular commodity affected by a marketing order may,
in  the  discretion  of  the  president, be refunded at the close of any
marketing season  upon  a  pro-rata  basis  to  all  persons  from  whom
assessments  therefor  were  collected  or, whenever the president finds
that such moneys may be necessary to defray the cost of  operating  such
marketing  order  in  a succeeding marketing season, he or she may carry
over all or any portion of such moneys into  the  next  such  succeeding
season.  Upon  the  termination by the president of any marketing order,
all moneys remaining and not required by the  president  to  defray  the
expenses  of  operating  such  marketing order, shall be refunded by the

president upon a pro-rata basis to all  persons  from  whom  assessments
therefor  were collected; provided, however, that if the president finds
that the amounts so refundable are so small as to make impracticable the
computation  and  refunding  of such refunds, the president may use such
moneys to defray the expenses incurred by him or her in the formulation,
issuance, administration or  enforcement  of  any  subsequent  marketing
order for such commodity.
(j)  Advisory  board.  (i) Any marketing order issued pursuant to this
section shall provide for the establishment of  an  advisory  board,  to
consist  of  not  less  than five members nor more than nine members, to
advise the president in the administration of such  marketing  order  in
accordance with its terms and provisions. The president shall administer
and  enforce  any  such order while it is in effect, consulting with the
advisory board and seeking its advice and consent. The members  of  said
board  shall  be appointed by the commissioner from nominations received
from the commodity group for which the marketing order  is  established.
Nominating  procedure,  qualification,  representation  and  size of the
advisory board shall be prescribed in each  marketing  order  for  which
such  board  is appointed. Each advisory board shall be composed of such
producers and handlers or processors as are  directly  affected  by  the
marketing  order in such proportion of representation as the order shall
prescribe. The commissioner may appoint one  person  who  is  neither  a
producer,  processor  or  other  handler  to represent the department of
agriculture and markets, the corporation, or the public generally.
(ii) No member of an advisory board shall receive a salary,  but  each
shall  be  entitled to his or her actual expenses incurred while engaged
in performing his or her duties herein authorized.
(iii) The duties and responsibilities of each advisory board shall  be
prescribed  by the president, in consultation with the commissioner, and
he or  she  shall  specifically  delegate  to  the  advisory  board,  by
inclusion   in   the   marketing   order,   the   following  duties  and
responsibilities:
(A) The recommendation to the president of  administrative  rules  and
regulations relating to the marketing order.
(B)  Recommending  to  the  president such amendments to the marketing
order as deemed advisable.
(C)  The  preparation  and  submission   to   the   commissioner,   in
consultation  with  the  president, of the estimated budget required for
the proper operation of the marketing order.
(D) Recommending to the president methods for assessing members of the
industry and methods for collecting the necessary funds.
(E) Assisting the  president  in  the  collection  and  assembling  of
information  and  data  necessary  to  the  proper administration of the
order.
(F) The performance of  such  other  duties  in  connection  with  the
marketing order as the president shall designate.
4.  Rules and regulations; enforcement. The president, with the advice
and consent of the advisory board, may make and  promulgate  such  rules
and  regulations  as  may  be necessary to effectuate the provisions and
intent of this section and to enforce the  provision  of  any  marketing
agreement or order, all of which shall have the force and effect of law.
The  president,  in  consultation  with the commissioner may institute
such action at law or in equity  as  may  appear  necessary  to  enforce
compliance   with  any  provision  of  this  section,  or  any  rule  or
regulation, marketing agreement  or  order,  committed  to  his  or  her
administration,  and  in  addition may apply for relief by injunction if
necessary to protect the public  interest  without  being  compelled  to
allege  or  prove  that  an  adequate remedy at law does not exist. Such

application may be made to the supreme court in any district  or  county
as provided in the civil practice law and rules, or to the supreme court
in the third judicial district.
5. Cooperation by the department. The president of the corporation may
request  and  receive,  within  ninety  days  of  such request, from the
department such  assistance,  information  and  cooperation  as  may  be
necessary  for  the  corporation to provide services with respect to the
administration of the procedures set forth for the issuance, termination
or amendment of any agricultural, commodities or  aquatic  order  and/or
the  administration  of  any such order. The corporation shall retain an
amount equal to the expenses incurred by the corporation  in  performing
its  duties  pursuant  to  this  section and reimburse the department an
amount equal to the expenses incurred by  the  department  in  supplying
such services, subsequent to submission and audit of a voucher therefor.
Such  reimbursement shall not exceed the total amount of funds collected
by the corporation pursuant to this section less the reasonable expenses
incurred by the corporation in performing its duties  pursuant  to  this
section.
6.  Indemnification.  The  state  shall  defend,  indemnify  and  hold
harmless the corporation, its directors, officers, and  employees,  from
and  against  any  and  all  claims, demands, causes of action, damages,
costs and expenses whatsoever arising directly or  indirectly  from,  or
relating  to,  the  administration  of  any agricultural, commodities or
aquatic promotion order issued or administered pursuant to this section.
In connection with the foregoing, the corporation shall give  the  state
(a)  prompt  written  notice of any action, claim or threat of suit, (b)
the opportunity to take over, settle or defend  such  action,  claim  or
suit  at  the state's sole expense, and (c) assistance in the defense of
any such action at the expense of the state.
7. Contractual provisions. The corporation may contract  for  services
with  respect  to  the implementation of this section in accordance with
the corporation's policies, procedures and  guidelines.  Notwithstanding
section  2879  of  the  public  authorities  law or any other law to the
contrary, any such contract may be procured  by  the  corporation  on  a
sole-source  basis,  and  shall  not  be  subject  to competitive bid or
competitive request for proposal requirements.
* NB Repealed July 31, 2026
* § 16-z. Marketing  orders.  The  marketing  orders,  the  regulatory
provisions  relating  thereto,  set  forth  in title one of the official
compilation of codes, rules and regulations of the  state  of  New  York
parts  40,  200, 201, 202, 203, 204, and 205, and the contracts relating
thereto shall remain in full force and effect until amended or  repealed
pursuant  to the statutory authority set forth in sections 16-x and 16-y
of this act except that:  (a)  such  marketing  orders,  the  regulatory
provisions relating thereto, and the contracts relating thereto shall be
administered  by  and  under  the  supervision  of  the president of the
corporation as of the effective date of sections 16-x and 16-y  of  this
act;  (b)  all  undisbursed funds under the control of the department of
agriculture and markets shall be transferred to the  corporation  on  or
before  such  effective  date;  and  (c) any assessments due and payable
under such  marketing  orders  shall  be  remitted  to  the  corporation
starting 30 days after the effective date of this section.
* NB Repealed July 31, 2026
§   16-aa.  Life  sciences  initiatives  program.  The  life  sciences
initiatives program is hereby established for the purpose of  attracting
new  life  sciences technologies, to promote critical public and private
sector investment in emerging life sciences fields in  New  York  state,

and   to   create  and  expand  life  sciences  related  businesses  and
employment.
1.  Such life sciences initiatives program is designated to operate in
areas identified by the corporation as having significant potential  for
economic  growth  in  New  York, or in which the application of new life
sciences technologies could significantly enhance the  productivity  and
stability of New York businesses.
2.  Life  sciences  are  defined as advanced and applied sciences that
expand the understanding of human physiology and have the  potential  to
lead  to medical advances or therapeutic applications including, but not
limited  to,  academic  medical  centers,  agricultural   biotechnology,
biogenerics, bioinformatics, biomedical engineering, biopharmaceuticals,
biotechnology,  chemical  synthesis,  chemistry technology, diagnostics,
genomics, image analysis, marine  biology,  marine  technology,  medical
devices,  nanotechnology,  natural  product pharmaceuticals, proteomics,
regenerative medicine, RNA interference, stem  cell  research,  clinical
trials,  including  but  not limited to neurological clinical trials and
veterinary science.
3. A life sciences  entity  is  defined  as  a  business  corporation,
partnership,  firm,  unincorporated  association,  or  any  other entity
engaged  in  life  sciences  research,  development,  manufacturing   or
commercialization.
4.  (a) The corporation is authorized, within available appropriations
and consistent with such appropriations in the Life Sciences Initiatives
Program  to  provide  financial  support,  through  an  application  and
approval  process  and  such  funds  may be used for the advancement and
economic  growth  of  life  sciences  programs,  employment  of   staff,
development  and  facilities  or  other working capital that are aligned
with the life sciences program strategy and approved by the corporation.
(b) A life sciences entity must  submit  a  completed  application  as
prescribed  by  the  chief  executive  officer  of the corporation. Life
sciences initiatives entity applications will be accepted, reviewed  and
approved on a rolling basis. Life sciences initiatives entity applicants
may  include  a  program or multiple programs in their application. Each
life sciences  program  applicant  shall  include  information  in  such
application  relating  to  how its life sciences program initiative will
enhance and accelerate life science programs, research and job  creation
and retention within New York.
5.  The chief executive officer of the corporation shall, on or before
October first, two thousand eighteen and every year  thereafter,  submit
to  the  governor, the temporary president of the senate and the speaker
of the assembly an annual report on the operations  and  accomplishments
of  the  life sciences initiatives programs which shall include, but not
be limited to, the economic impact of  the  activities  undertaken  with
state  funds,  the  number  and  amount  of federal funds procured after
program approval, including such factors as jobs created and maintained,
the average salary of the  jobs  created  and  average  salary  of  jobs
retained.
6.  (a)  The  corporation  shall  by  rule establish criteria for such
program,  such  criteria   shall   include   detailed   provisions   for
eligibility.
(b)  The  corporation shall issue guidelines to effectuate the purpose
of this section.
§ 16-dd. Community development revolving loan program. 1. Definitions.
As used in this section, the following terms shall  have  the  following
meanings:
(a)   "Community   development   financial   institution"   means   an
organization whose principal office is located in this state, which  has

been  certified  as a community development financial institution by the
federal  community   development   financial   institutions   fund,   as
established pursuant to 12 U.S.C. § 4701, et seq.
(b) "Investment area" means a geographic area which:
(i) Is economically distressed as defined in section sixteen-d of this
act; and
(ii)  Has  significant  unmet  needs  for  loans  or  is  located in a
federally  designated  empowerment  zone  or  enterprise  community   as
established  pursuant  to  title  XIII  of  the  federal  omnibus budget
reconciliation act of 1993 (Public Law 103-66).
(c) "Low income" means having an income, adjusted for family size,  of
not more than:
(i)  For metropolitan areas, eighty percent of the area median income;
or
(ii) For non-metropolitan areas, the greater of eighty percent of  the
area median income or the statewide non-metropolitan area median income.
(d)  "Targeted  population" means low-income individuals, minority and
women-owned business  enterprises,  small  businesses,  microbusinesses,
small  farm businesses, community-based not-for-profit corporations, and
such other individuals and entities that otherwise lack adequate  access
to loans as the corporation shall establish through guidelines.
(e)  "Target  market" means a defined service area which serves one or
more investment areas or targeted population.
2. The community development revolving loan program is hereby  created
to  provide  low  interest  loans or loan guarantees to a target market,
where it is underserved and otherwise difficult to obtain  regular  bank
financing.  Such  loans  or loan guarantees shall be made by a community
development financial institution and shall be made in target markets to
members of a targeted population for purposes including, but not limited
to,  working  capital,  the  acquisition  and/or  improvement  of   real
property,  the  acquisition  of  machinery  and  equipment,  property or
improvements  thereto,  residential  mortgages,  commercial   mortgages,
housing rehabilitation, home improvement, and for such other purposes as
the corporation shall establish through guidelines.
3.   A   community   development  financial  institution  desiring  to
participate in the program shall execute an agreement in  such  form  as
the   corporation  may  prescribe  and  shall  contain  such  terms  and
provisions as the corporation or its agent may  deem  as  necessary  and
appropriate.
4.  (a) The corporation is hereby authorized to administer the program
created in subdivision two of this section or, alternatively, to do  the
following:
(i)  enter  into  a contract with a third party to act as the agent of
the corporation with respect to  the  administration  of  such  program,
pursuant to a competitive process;
(ii) conduct an annual review and assessment of the performance of the
third  party  in  its capacity as agent for the corporation to determine
whether the contract referenced in subparagraph (i)  of  this  paragraph
should be renewed for an additional two year period. The review shall be
based  on whether the third party agent has satisfactorily met the terms
and conditions of the contract; and
(iii)  promulgate  rules  and  regulations   with   respect   to   the
implementation  of  the  community  development  revolving  loan program
established  by  this  section  and  any  other  rules  and  regulations
necessary  to  fulfill  the purposes of this section, in accordance with
the state administrative procedure act.
(b)  Any  contract  entered  into  pursuant  to  subparagraph  (i)  of
paragraph (a) of this subdivision shall:
(i)  be  for  a  period  of  two  years  and  shall  be renewed for an
additional two year period subject to requirements of subparagraph  (ii)
of paragraph (a) of this subdivision; and
(ii) provide for compensation for expenses incurred by the third party
agent  in  connection  with  its  services  as  agent and for such other
services as the corporation may  deem  appropriate  including,  but  not
limited  to  the use of the premises, personnel and personal property of
the third party agent.
5. The corporation is authorized to establish a  revolving  loan  fund
account  into which funds may be received from any source, including but
not limited  to,  the  corporation,  financial  institutions,  insurance
companies,  business  corporations and from settlements of civil actions
by the department of financial services, and from  which  funds  may  be
expended for the aforementioned purposes.
6.  With  respect  to  loans  pursuant  to  this  program, a community
development financial institution may charge application, commitment and
loan guarantee fees subject to  a  schedule  of  fees  approved  by  the
corporation.
7.  A community development financial institution participating in the
program shall submit to the corporation, an annual report detailing  the
following:
(a) the number of program loans made;
(b) the amount of program funding used for loans;
(c) the use of loan proceeds by the borrower;
(d) the number of jobs created or retained;
(e) a description of the economic development generated;
(f) the status of outstanding program loans; and
(g)  such  other  information  as  the  corporation or its agent shall
require.
8. The corporation may directly  or  through  a  third  party  conduct
audits  of  a  community  development financial institution's compliance
with the provisions of this section and any regulations promulgated.  In
the  event  of  substantive noncompliance, the corporation may terminate
the participation of such community development financial institution in
the program.
§  16-ee.  Loans  to  social  and  economic  equity  applicants.   The
corporation  is  authorized, on the recommendation of the state cannabis
control board,  to  provide  low  interest  or  zero-interest  loans  to
qualified  social  and  economic  equity applicants and to provide funds
necessary for the provision of such loans, as provided  for  in  article
four of the cannabis law.
§  16-ff.  COVID-19 pandemic small business recovery grant program. 1.
Definitions. As used in this section, the following terms shall have the
following meanings:
(a) "Small business" shall mean a business which is resident  in  this
state,  independently owned and operated, not dominant in its field, and
employs one hundred or less persons.
(b) "Micro-business" shall mean a business which is a resident in this
state, independently owned and operated, not dominant in its field,  and
employs ten or less persons.
(c)  "The  program"  shall  mean  the COVID-19 pandemic small business
recovery grant program established pursuant to subdivision two  of  this
section.
(d)  "Applicant" shall mean a small business or for-profit independent
arts and cultural organization submitting an  application  for  a  grant
award to the program.
(e)  "COVID-19  health  and  safety  protocols" means any restrictions
imposed on the operation of businesses by executive order  202  of  2020

issued  by  the governor, or any extension or subsequent executive order
issued in response to the novel coronavirus (COVID-19) pandemic, or  any
other   statute,  rule,  or  regulation  imposing  restrictions  on  the
operation  of businesses in response to the novel coronavirus (COVID-19)
pandemic.
(f) "For-profit independent arts and cultural organization" shall mean
a small or  medium  sized  private  for-profit,  independently  operated
live-performance  venue,  promoter,  production  company, or performance
related business located  in  New  York  state  negatively  impacted  by
COVID-19  health  and  safety  protocols, and having one hundred or less
full-time  employees,  excluding  seasonal  employees.  The   qualifying
organizations  under this definition may include businesses engaged in a
field including, but not limited to, architecture, dance, design,  film,
music,  theater,  opera,  media,  literature,  museum activities, visual
arts, folk arts and casting.
2.  COVID-19  pandemic   small   business   recovery   grant   program
established.    The  COVID-19  pandemic  small  business  recovery grant
program is hereby created to provide assistance to small businesses  and
for-profit   independent   arts  and  cultural  organizations  who  have
experienced economic hardship during the COVID-19 pandemic.
3.  Authorization.  The  corporation  is  hereby   authorized,   using
available  funds,  to  issue grants and provide technical assistance and
outreach to small businesses, for-profit independent arts  and  cultural
organizations,  and  technical  assistance  partners  for the purpose of
aiding the recovery of the New York state economy,  and  may  promulgate
guidelines or regulations to effectuate the purposes herein.
4.  Selection  criteria  and  application  process. (a) In order to be
eligible for a grant or additional form of support under the program, an
eligible small business or  for-profit  independent  arts  and  cultural
organization shall:
(i)  Be incorporated in New York state or licensed or registered to do
business in New York state;
(ii) Be a currently viable small business  or  for-profit  independent
arts  and  cultural organization that has been in operation since before
March 1, 2019;
(iii) Be able to demonstrate lost revenue or other  economic  hardship
due  to  the  COVID-19  pandemic  or compliance with COVID-19 health and
safety   protocols   which   resulted   in    business    modifications,
interruptions,  or  closures.  To  demonstrate  lost  revenue  or  other
economic hardship, the applicant  shall  show  a  loss  in  year-to-date
revenue as of December 31, 2020, compared with the same period in 2019;
(iv)  Be  in substantial compliance with applicable federal, state and
local laws, regulations, codes and requirements; and
(v) Not owe any federal, state or local taxes prior to July 15,  2020,
or  have  an  approved  repayment,  deferral  plan,  or  agreement  with
appropriate federal, state and local taxing authorities.
(b) Grants awarded from this program shall be  available  to  eligible
micro-businesses,  small businesses, and for-profit independent arts and
cultural organizations that do not qualify for business assistance grant
programs under the federal American Rescue Plan Act of 2021 or any other
available federal COVID-19  economic  recovery  or  business  assistance
grant  programs,  including  loans  forgiven  under the federal Paycheck
Protection  Program,  or  are  unable  to  obtain  sufficient   business
assistance  from  such federal programs, with priority given to socially
and  economically  disadvantaged  business  owners  including,  but  not
limited    to,    minority   and   women-owned   business   enterprises,
service-disabled veteran-owned businesses, and veteran-owned businesses,

or businesses located in communities that were  economically  distressed
prior to March 1, 2020, as determined by the most recent census data.
5.  Eligible  costs.  (a)  Eligible  costs  shall  be  considered  for
micro-businesses, small businesses, and for-profit independent arts  and
cultural  organizations  negatively impacted by the COVID-19 pandemic or
by their compliance with COVID-19  health  and  safety  protocols  which
resulted  in  lost  revenue,  business  modifications, interruptions, or
closures. Such eligible costs shall have been incurred between March  1,
2020 and April 1, 2021.
(b)  The following costs incurred by a micro-business, small business,
or for-profit  independent  arts  and  cultural  organization  shall  be
considered eligible under the program at a minimum: payroll costs; costs
of  rent  or  mortgage  as  provided  for  in  subparagraph  (i) of this
paragraph;  costs  of  repayment  of  local  property  or  school  taxes
associated  with  such  small  business's  location  as  provided for in
subparagraph (ii) of this paragraph;  insurance  costs;  utility  costs;
costs of personal protection equipment (PPE) necessary to protect worker
and   consumer   health   and  safety;  heating,  ventilation,  and  air
conditioning (HVAC) costs, or other machinery  or  equipment  costs,  or
supplies and materials necessary for compliance with COVID-19 health and
safety protocols, and other documented COVID-19 costs as approved by the
corporation.
(i)  Mortgage payments or commercial rent shall be considered eligible
costs.
(ii) Payment of  local  property  taxes  and  school  taxes  shall  be
considered eligible costs.
(c)  Grants  awarded  under the program shall not be used to re-pay or
pay down any portion of a loan obtained through  a  federal  coronavirus
relief  package  for  business assistance or any New York state business
assistance programs.
6. Application and approval process. (a) An  eligible  micro-business,
small business, or for-profit independent arts and cultural organization
shall  submit  a complete application in a form and manner prescribed by
the corporation.
(b) The corporation shall establish the procedures and time period for
micro-businesses, small businesses, or for-profit independent  arts  and
cultural organizations to submit applications to the program. As part of
the  application  each  micro-business,  small  business,  or for-profit
independent arts and  cultural  organization  shall  provide  sufficient
documentation  in  a manner prescribed by the corporation to demonstrate
hardship, and prevent fraud, waste, and abuse.
7.  Reporting.  The  corporation,  on  a  quarterly  basis   beginning
September  30,  2021,  and  ending  when all program funds are expended,
shall submit a  separate  and  distinct  report  to  the  governor,  the
temporary  president  of  the  senate,  and  the speaker of the assembly
setting forth the activities undertaken by the program.  Such  quarterly
report  shall  include,  but  need  not  be  limited  to:  the number of
applicants and their county locations; the number of applicants approved
by the program and their county location; the  total  amount  of  grants
awarded,  and  the average amount of such grants awarded; and such other
information as the corporation  determines  necessary  and  appropriate.
Such report shall be included on the corporation's website and any other
publicly  accessible  state  database  that  list  economic  development
programs, as determined by the commissioner.
8. Technical assistance and outreach. The  corporation  may  offer  or
make  available to all applicants, regardless of approval status, direct
or  indirect  access  to  financial   and   business   planning,   legal
consultation,  language  assistance  services,  mentoring  services  for

post-pandemic  planning,  reopening  planning   assistance   and   other
assistance  and  support  as  determined by the corporation. Assistance,
support, outreach and other services  may  be  provided  by  or  through
partner   organizations,  including  but  not  limited  to  chambers  of
commerce, local business development  corporations,  trade  associations
and  other community organizations that have expertise and background in
providing technical assistance, at the discretion of the corporation.
* § 16-gg. Small business seed funding grant program. 1.  Definitions.
As  used  in  this section, the following terms shall have the following
meanings:
(a) "Small business" shall mean a business which is resident  in  this
state,  independently owned and operated, not dominant in its field, and
employs one hundred or less persons, was started on September 1, 2018 or
later and has been operational for a minimum  of  six  months  prior  to
application.
(b) "Micro-business" shall mean a business which is a resident in this
state,  independently owned and operated, not dominant in its field, and
employs ten or less persons.
(c) "The program" shall mean the small  business  seed  funding  grant
program established pursuant to subdivision two of this section.
(d)  "Applicant"  shall  mean  a  micro-business,  small  business, or
for-profit  independent  arts  and  cultural   organization,   including
independent arts contractors submitting an application for a grant award
to the program.
(e) "For-profit independent arts and cultural organization" shall mean
a  small  or  medium  sized  private  for-profit, independently operated
live-performance venue, promoter,  production  company,  or  performance
related business, including independent arts contractors, located in New
York  state negatively impacted by COVID-19 health and safety protocols,
and having one hundred or less full-time employees,  excluding  seasonal
employees.
2.  Small  business  seed funding grant program established. The small
business seed  funding  grant  program  is  hereby  created  to  provide
assistance  to  early-stage  small businesses to succeed in a recovering
New York state economy.
3.  Authorization.  The  corporation  is  hereby   authorized,   using
available  funds,  to  issue grants and provide technical assistance and
outreach to micro-businesses,  small  businesses,  for-profit  arts  and
cultural   organizations  including  independent  arts  contractors  and
technical assistance partners for the purpose of aiding the recovery  of
the  New York state economy, and may promulgate guidelines to effectuate
the purposes herein.
4. Selection criteria and application process.  (a)  In  order  to  be
eligible for a grant or additional form of support under the program, an
eligible small business shall:
(i)  be incorporated in New York state or licensed or registered to do
business in New York state and must be resident  in  the  state  of  New
York;
(ii)  be a currently viable micro-business, small business, for-profit
arts and cultural organization including  independent  arts  contractors
that  started  business  on  September  1,  2018  or  later and has been
operational for at least six months before an application is submitted;
(iii) have between five thousand and  one  million  dollars  in  gross
receipts  or  be  able  to demonstrate five thousand dollars in business
expenses;
(iv) be in substantial compliance with applicable federal,  state  and
local laws, regulations, codes and requirements; and
(v)  not  owe  any  federal, state or local taxes, or have an approved
repayment, deferral plan, or agreement with appropriate federal,  state,
and local taxing authorities.
(b)  (i)  Grants  awarded  from  this  program  shall  be available to
eligible micro-businesses, small businesses,  and  for-profit  arts  and
cultural  organizations  including  independent arts contractors that do
not qualify for business assistance grant  programs  under  the  federal
American Rescue Plan Act of 2021 or any other available federal COVID-19
economic recovery or business assistance grant programs, including loans
forgiven under the federal Paycheck Protection Program, or are unable to
obtain  sufficient  business assistance from such federal programs, with
priority given  to  socially  and  economically  disadvantaged  business
owners  including, but not limited to, minority and women-owned business
enterprises,    service-disabled    veteran-owned    businesses,     and
veteran-owned businesses, or businesses located in communities that were
economically  distressed  prior  to  March 1, 2020, as determined by the
most recent census data.
(ii) Grants awarded from this program shall be available  to  eligible
micro-businesses,  small  businesses  and  for-profit  arts and cultural
organizations  including  independent  arts  contractors  that  did  not
qualify  for  business  assistance  under  the  COVID-19  pandemic small
business recovery grant program as provided for in section sixteen-ff of
this act.
5. Eligible costs. (a) Eligible costs considered for  micro-businesses
and  small businesses under this program must have been incurred between
September 1, 2018 and January 1, 2022.
(b) (i) The  following  costs  incurred  by  a  micro-business,  small
business,  and  for-profit  arts  and  cultural  organization  including
independent arts contractors shall  be  considered  eligible  under  the
program  at  a  minimum:  payroll  costs;  costs  of rent or mortgage as
provided for in subparagraph (ii) of this paragraph; costs of  repayment
of  local property or school taxes associated with such small business's
location as provided  for  in  subparagraph  (iii)  of  this  paragraph;
insurance  costs;  utility costs; costs of personal protection equipment
(PPE) necessary to  protect  worker  and  consumer  health  and  safety;
heating,  ventilation,  and  air  conditioning  (HVAC)  costs,  or other
machinery or equipment costs, or supplies and  materials  necessary  for
compliance   with  COVID-19  health  and  safety  protocols,  and  other
documented COVID-19 costs as approved by the corporation.
(ii) Mortgage payments or commercial rent shall be considered eligible
costs.
(iii) Payment of local  property  taxes  and  school  taxes  shall  be
considered eligible costs.
(c)  Grants  awarded  under the program shall not be used to re-pay or
pay down any portion of a loan obtained through  a  federal  coronavirus
relief  package  for  business assistance or any New York state business
assistance programs.
6. Application and approval process. (a) An  eligible  micro-business,
small  business,  or for-profit arts and cultural organization including
independent arts contractors shall submit a complete  application  in  a
form and manner prescribed by the corporation.
(b) The corporation shall establish the procedures and time period for
micro-businesses,  small  businesses,  or  for-profit  arts and cultural
organizations  including  independent   arts   contractors   to   submit
applications   to   the   program.  As  part  of  the  application  each
micro-business,  small  business,  or  for-profit  arts   and   cultural
organization   including  independent  arts  contractors  shall  provide

sufficient documentation in a manner prescribed by  the  corporation  to
demonstrate hardship, and prevent fraud, waste, and abuse.
7.  Technical  assistance  and  outreach. The corporation may offer or
make available to all applicants, regardless of approval status,  direct
or   indirect   access   to   financial  and  business  planning,  legal
consultation,  language  assistance  services,  mentoring  services  for
post-pandemic   planning,   reopening   planning  assistance  and  other
assistance and support as determined  by  the  corporation.  Assistance,
support,  outreach  and  other  services  may  be provided by or through
partner  organizations,  including  but  not  limited  to  chambers   of
commerce,  local  business  development corporations, trade associations
and other community organizations that have expertise and background  in
providing technical assistance, at the discretion of the corporation.
8.   Reporting.  The  corporation,  on  a  quarterly  basis  beginning
September 30, 2022, and ending when  all  program  funds  are  expended,
shall  submit  a  separate  and  distinct  report  to  the governor, the
temporary president of the senate,  and  the  speaker  of  the  assembly
setting  forth  the activities undertaken by the program. Such quarterly
report shall include,  but  need  not  be  limited  to:  the  number  of
applicants and their county locations; the number of applicants approved
by  the  program  and  their county location; the total amount of grants
awarded, and the average amount of such grants awarded; and  such  other
information  as  the  corporation  determines necessary and appropriate.
Such report shall be included on the corporation's website and any other
publicly  accessible  state  database  that  list  economic  development
programs,  as  determined  by  the  commissioner.  Such reporting may be
incorporated as part of any reporting required under section  sixteen-ff
of this act.
* NB There are 2 § 16-gg's
* §  16-gg.  Division of Broadband Access. 1. Statement of Legislative
findings and purpose. The legislature hereby finds  and  declares  that:
access  to  high-speed,  reliable, and affordable broadband is essential
for education, economic growth, and full participation  in  civic  life;
the  persistence of the digital divide is a key barrier to improving the
general  welfare;  the   digital   divide   disproportionately   affects
communities  of  color,  lower-income  areas,  rural  areas,  and  other
vulnerable populations, and the benefits of broadband access  should  be
available  to  all; a robust and competitive internet marketplace in New
York supports general economic development and benefits New Yorkers with
improved  internet  service  and  affordability;   the   state   has   a
responsibility to assist in ending the digital divide, supporting a more
robust  and  competitive  internet  marketplace,  and carrying out other
actions  to  ensure  universal  access  to  high-speed,  reliable,   and
affordable broadband.
2.  Definitions. The following definitions shall apply throughout this
section unless the context clearly requires otherwise:
(a) "Advisory committee"  or  "committee"  shall  mean  the  broadband
development advisory committee created by this section.
(b)  "Broadband", "broadband service", or "broadband internet" means a
mass-market retail service by wire or radio that provides the capability
to transmit data to and receive  data  from  all  or  substantially  all
internet  endpoints,  including  any capabilities that are incidental to
and enable the operation of the communications  service,  but  excluding
dial-up internet access service.
(c)   "Commissioner"   shall   mean   the   commissioner  of  economic
development.
(d) "Director" shall mean the director of the  division  of  broadband
access.
(e)  "Division" means the division of broadband access created by this
section.
(f)  "Unserved  location"  means  a broadband-serviceable location, as
determined by the division, that has no access to broadband  service  or
lacks access to reliable broadband service at 25 megabits per second for
downloads and 3 megabits per second upload speed.
(g)  "Underserved location" means a broadband-serviceable location, as
determined by the division, that only has access to broadband service of
at least 25 megabits per second but less than 100  megabits  per  second
download  speed  and  at  least  3  megabits per second but less than 20
megabits per second upload speed.
(h)  Should  the  division  determine  that  the   definitions   under
paragraphs  (f)  and  (g)  of  this  subdivision concerning download and
upload speeds be outdated as  a  result  of  advancements  in  broadband
technological capabilities or standards, such download and upload speeds
established under this section shall be superseded by guidelines, rules,
or  regulations  established by the division; provided that the download
and upload speeds included in the definitions shall not be reduced.
3. Division of broadband access; director; employees. There is  hereby
created  within  the  department  of  economic development a division of
broadband access. The head of  such  office  shall  hold  the  title  of
director  and be appointed by the commissioner, and shall hold office at
the pleasure of the commissioner.
4. Powers and duties of the division  of  broadband  development.  The
division shall have the power to:
(a)  Coordinate  the  activities  of  all  state  agencies  performing
functions affecting  access  to  high-speed,  reliable,  and  affordable
broadband.
(b)  Conduct  research  and  analyses  of  matters affecting access to
high-speed, reliable, and affordable broadband.
(c) Advise and make recommendations to  the  commissioner  on  matters
affecting access to high-speed, reliable, and affordable broadband.
(d)  Provide  advisory  assistance  to municipalities, state and local
authorities,  and  other  entities  to  expand  access  to   high-speed,
reliable, and affordable broadband.
(e)  Establish  and  implement  programs, including grant programs, to
expand  access  to  high-speed,  reliable,  and  affordable   broadband,
including  but  not  limited to: programs to improve broadband access at
unserved  and  underserved  locations;  programs  to  deploy   broadband
infrastructure  owned  or  managed  by  municipalities,  state and local
authorities, entities  established  pursuant  to  section  99-y  of  the
general  municipal  law,  or not-for-profit entities; programs to deploy
innovative broadband technologies and means to improve broadband access;
including in low-income  areas;  programs  to  improve  digital  equity,
digital inclusion, and digital literacy.
(f)  Take  additional  actions  the division deems necessary to expand
access to high-speed, reliable, and affordable broadband.
5. Rules and regulations. The commissioner  may  adopt  any  necessary
rules,  regulations,  or  guidelines  to  effectuate the purposes of the
division. Notwithstanding any conflicting provision of this article, the
commissioner may adopt any necessary rules, regulations,  or  guidelines
for  state  participation  in federal broadband programs consistent with
the requirements set forth under the Infrastructure Investment and  Jobs
Act,  American Rescue Plan Act, Digital Equity Act, or any other federal
program  determined  as  directly  relevant  to  increasing  access   to
high-speed, reliable, and affordable broadband by the commissioner.
6. Broadband access advisory committee. (a) There is hereby created in
the  division  of  broadband  access  a  broadband  development advisory

committee. The committee shall consist of 16 members, four of which  are
to  be appointed by the governor, one of which is to be appointed by the
speaker of the assembly, and one of which is  to  be  appointed  by  the
temporary  president  of  the  senate.  The  commissioners, or designees
thereof, of the department  of  public  service,  department  of  labor,
department  of transportation, office of general services, department of
economic development, department  of  homeland  security  and  emergency
services,  division  of  housing  and  community  renewal, and education
department, the president of the  New  York  power  authority,  and  the
director  of  the  division  of  the  budget  shall  serve as ex-officio
members. The governor shall designate a chairperson from the members  of
the  advisory  committee,  to  serve  as  such  at  the  pleasure of the
governor. In appointing  the  members  of  the  advisory  committee  the
governor  shall  ensure  that  at  least  one  member  is  an individual
representing a telecommunications union,  at  least  one  member  is  an
individual  with substantial expertise in tribal affairs, and two of the
members   are   individuals   who   have   substantial   expertise    in
telecommunications   policy,  broadband  development,  grant-making,  or
internet regulation, of  which  one  shall  have  expertise  on  service
providers  with over 100,000 subscribers in New York state and one shall
have expertise on service providers with less than  100,000  subscribers
in New York state.
(b)  All  members of the advisory committee, other than the ex-officio
members, shall serve for terms of three years, such term shall  commence
on  the  first  day  the  committee is convened. Any vacancies occurring
otherwise than by expiration of term shall be filled in the same  manner
as original appointments for the balance of the unexpired term.
(c)  The advisory committee shall meet at least twice in each calendar
year. Special meetings may be called by its  chairperson  and  shall  be
called by the chairperson at the request of the director of the division
of broadband access.
(d)  No  member  of  the advisory committee shall be disqualified from
holding any other public office, nor forfeit any such office  by  reason
of appointment hereunder, notwithstanding the provisions of any general,
special  or  local law, ordinance or city charter, provided however that
members appointed by the governor, speaker of the assembly, or temporary
president of the senate shall be considered state officers  and  subject
to the provisions of paragraph (a) of subdivision 8 of section 73 of the
public officers law.
(e)   The   members   of  the  advisory  committee  shall  receive  no
compensation for their services but shall be allowed  their  actual  and
necessary   expenses   incurred  in  the  performance  of  their  duties
hereunder.
(f) The committee shall:
(i) advise the director in carrying  out  the  functions,  powers  and
duties of the division, as set forth in this article.
(ii) advise the director, the governor, and the legislature concerning
policy  changes necessary to promote expansion and development of access
to high-speed, reliable, and affordable broadband.
(iii)  advise  the  director,  the  governor,  and   the   legislature
concerning   existing   policies   of   state   agencies  which  may  be
counter-productive or inimical to promote expansion  and  deployment  of
high-speed, reliable, and affordable broadband.
(iv) advise the director, the governor, and the legislature concerning
the  development of inter-governmental cooperation among agencies of the
federal, state, and local governments and  cooperation  between  private
industry  and  government  so  as  to  promote expansion, deployment and
continued provision of high-speed, reliable, and affordable broadband.
(v) advise the director, the governor, and the legislature  on  issues
related  to  fostering  consumer  choice,  increasing competition in the
broadband industry, and promoting open-access infrastructure.
(vi)  advise  the  director,  in  consultation  with  the  division of
broadband  access,  on   potential   guidelines   or   regulations   for
implementation of broadband-related programs.
(vii)  advise  the  director,  the  governor,  and  the legislature on
policies related to the deployment of wireless  and  cellular  services,
including deployment of small cell networks for access to 5G services.
(viii)  advise the director on policies to reduce regulatory obstacles
and streamline regulations to promote access  to  high-speed,  reliable,
and affordable broadband.
(ix) advise the director on policies to maximize access to high-speed,
reliable, and affordable broadband in affordable housing projects.
(x)  advise  the director on policies relevant to ensuring that senior
citizens have access to high-speed, reliable, and affordable broadband.
(xi) make periodic recommendations as  to  updates  to  the  broadband
report required by the Comprehensive Broadband Connectivity Act.
7. ConnectAll deployment program. The ConnectAll deployment program is
hereby  established to provide grant funding to construct infrastructure
necessary to provide broadband  services  to  unserved  and  underserved
locations  in  the  state.  Grants issued pursuant to this program shall
facilitate projects  that,  at  a  minimum,  provide  reliable  internet
service  with  consistent speeds of at least 100 megabits per second for
download and at least 20 megabits per second  for  upload,  unless  this
requirement is waived for a specific project or location and a different
speed level is approved by the division, but under no circumstances less
than  25  megabits per second download and 3 megabits per second upload;
provided further that applicants for grant funding  under  this  section
may include incorporated organizations, Native American tribes or tribal
organizations, local units of government, or a group of any of the above
entities;  provided  further  that  an applicant for grant funding under
this section shall demonstrate suitable fiscal, technical,  operational,
and  management  capabilities  as  determined  by the division; provided
further that an applicant for grant funding  under  this  section  shall
provide  certifications  as to compliance with relevant safety standards
as determined by the division, including the National Electrical  Safety
Code;  provided  further  that an applicant for grant funding under this
section shall provide certifications  as  to  compliance  with  relevant
workplace  protections  as  determined  by  the  division  including the
Occupational Safety and Health Act, the Fair Labor Standards Act,  Title
VII  of  the  Civil  Rights  Act  of  1964, and New York State labor and
employment laws; provided further that an applicant  for  grant  funding
under  this  section  shall submit to the division a workforce plan in a
format determined by the division  which,  to  the  extent  practicable,
shall  include:  (a)  information  relating  to whether the construction
workforce  will  be  directly  employed  or   subcontracted;   (b)   the
anticipated  size  of  the  workforce required to carry out the proposed
work; (c) a description of plans to maximize use of  local  or  regional
workforce;  and  (d)  a  description  of  the  expected workforce safety
standards and training to ensure the project  is  completed  at  a  high
standard.  The  division  shall  establish  the  procedures  to solicit,
receive and evaluate applications for the program consistent with rules,
regulations, or guidelines established  by  the  commissioner;  provided
that  preference shall be given to applications that: (a) are capable of
delivering speeds of 1 gigabit per second download  and  1  gigabit  per
second  upload  to  the  end  user;  (b) provide service to locations in
unserved areas as determined by the division; (c) commit not  to  impose

caps  on data usage on the service provided to the end-user or to block,
throttle, or prioritize  internet  content  in  the  general  course  of
business;  and  (d)  have  and  commit  to maintaining high standards of
workplace safety practices, training, certification or licensure for all
relevant  workers,  and  compliance  with  state  and  federal workplace
protections.
8. ConnectAll municipal assistance program. The  ConnectAll  municipal
assistance  program  is  hereby  established to provide grant funding to
municipalities, state and local authorities,  and  entities  established
pursuant  to  section  99-y  of  the  general  municipal law to plan and
construct  infrastructure  necessary  to  provide  broadband   services,
support  the  adoption  of  broadband  services,  or  other purposes for
maximizing  the  effectiveness  of  municipal  broadband   programs   as
determined   by   the   division.   For   the   purposes   of  broadband
infrastructure, such  grants  issued  pursuant  to  this  program  shall
facilitate  projects  that,  at  a  minimum,  provide  reliable internet
service with consistent speeds of at least 100 megabits per  second  for
download  and  at  least  20 megabits per second for upload, unless this
requirement is waived for a specific project or location and a different
speed level is approved by the division, but under no circumstances less
than 25 megabits per second download and 3 megabits per  second  upload;
provided  further that an applicant for grant funding under this section
shall  demonstrate  suitable   fiscal,   technical,   operational,   and
management  capabilities as determined by the division; provided further
that an applicant for grant funding under  this  section  shall  provide
certifications  as  to  compliance  with  relevant  safety  standards as
determined by the division, including  the  National  Electrical  Safety
Code;  provided  further  that an applicant for grant funding under this
section shall provide certifications  as  to  compliance  with  relevant
workplace  protections  as  determined  by  the  division  including the
Occupational Safety and Health Act, the Fair Labor Standards Act,  Title
VII  of  the  Civil  Rights  Act  of  1964, and New York state labor and
employment laws; provided further that an applicant  for  grant  funding
under  this  section  shall submit to the division a workforce plan in a
format determined by the division  which,  to  the  extent  practicable,
shall  include:  (a)  information  relating  to whether the construction
workforce  will  be  directly  employed  or   subcontracted;   (b)   the
anticipated  size  of  the  workforce required to carry out the proposed
work; (c) a description of plans to maximize use of  local  or  regional
workforce;  and  (d)  a  description  of  the  expected workforce safety
standards and training to ensure the project  is  completed  at  a  high
standard.  The  division  shall  establish  the  procedures  to solicit,
receive and evaluate proposals for the program consistent  with,  rules,
regulations,  or  guidelines  established  by the commissioner; provided
that preference shall be given to applications that: (a) are capable  of
delivering  speeds  of  1  gigabit per second download and 1 gigabit per
second upload to the end user;  (b)  provide  service  to  locations  in
unserved  areas  as determined by the division; (c) commit not to impose
caps on data usage on the service provided to the end-user or to  block,
throttle,  or  prioritize  internet  content  in  the  general course of
business; and (d) have and  commit  to  maintaining  high  standards  of
workplace safety practices, training, certification or licensure for all
relevant  workers,  and  compliance  with  state  and  federal workplace
protections.
9. ConnectAll innovation  grant  program.  The  ConnectAll  innovation
grant  program  is  hereby  established  to  develop,  pilot, and deploy
innovative  models  and  technologies  for  the  delivery  of  broadband
services.  Grants issued pursuant to this program shall: (a) benefit the

development of innovative and new broadband solutions and  technologies;
(b)  deploy  innovative  broadband  technology  to rural, low-income, or
other areas that would be unlikely to otherwise see such deployment; (c)
promote  critical  private  sector  investment in such technologies; (d)
provide seed funding  for  the  development  of  such  technologies  and
products;  or  (e)  foster  collaboration  between the academic research
community and the business sector for such purposes. The division  shall
establish  the procedures to solicit, receive and evaluate proposals for
the  program  consistent  with   rules,   regulations,   or   guidelines
established by the commissioner.
10.  ConnectAll  digital  equity grant program. The ConnectAll digital
equity grant program is hereby established  to  support  individuals  to
have  the  information technology capacity needed for full participation
in society and the economy, including the effective implementation of  a
State  Digital Equity Plan or any successor plan. Grants issued pursuant
to this program shall be awarded in a manner and form as  determined  by
the  division  consistent  with all relevant federal laws, codes, rules,
and regulations associated  with  the  federal  Digital  Equity  Act  as
established  under  the  Infrastructure  Investment  and  Jobs  Act. The
division  shall  establish  such  State  Digital  Equity  Plan  and  the
procedures  to  solicit,  receive and evaluate proposals for the program
consistent with rules, regulations, or  guidelines  established  by  the
commissioner.
11.  Assistance  of other agencies. To effectuate the purposes of this
article, the director may request from any department, division,  board,
bureau,  commission  or  other  agency  of  the state or from any public
corporation or district, and the same are authorized  to  provide,  such
assistance,  services  and  data  as  will enable the office properly to
carry out its functions, powers and duties hereunder.
12. New NY Broadband Program; transfer. All the functions  and  powers
possessed  by  and all the obligations and duties of the state broadband
program office and the New NY Broadband Program are  hereby  transferred
and assigned to and assumed by the division.
13. Reporting. The division shall: (a) in a form and manner prescribed
in  accordance  with  the  Infrastructure  Investment  and  Jobs  Act or
American Rescue Plan Act, make publicly available  information  relevant
to  long  term  plans  for  the  use  of  broadband expansion funds, the
mechanisms by which the division will award  such  funds,  the  entities
that  will receive such funds from the division, progress reports on the
use and disbursement of such funds by the division, and a  comprehensive
final report on the activities of the division; and
(b)  every  six  months,  beginning  twelve  months  after  the  first
disbursement to a grant awardee under any program established under this
section, until such a time that all funds associated with  all  programs
established under this section have been fully expended, submit a report
to  the governor, the temporary president of the senate, and the speaker
of the assembly setting forth the activities undertaken by the  program.
Such  reports  shall include, but need not be limited to, the details of
the grants and recipients, locations of the  projects,  and  such  other
information  as  the  division  deems  necessary and appropriate, to the
extent that the production such reporting is not duplicative of  federal
reporting  requirements  associated with broadband expansion in New York
state under the Infrastructure  Investment  and  Jobs  Act  or  American
Rescue  Plan  Act.  Such  reports  shall be included on the department's
website and any other  publicly  accessible  state  database  that  list
economic development programs as determined by the director.
* NB There are 2 § 16-gg's
* §  16-hh.  Small  business  and  entrepreneurs grant program. 1. The
corporation   shall   establish   and    support,    within    available
appropriations, the small business and entrepreneurs grant program, as a
two-year  pilot  initiative of the corporation, to award grants of up to
twenty-five thousand dollars, but no less than five thousand dollars, to
entrepreneurs and small business owners to cover start up costs of a new
small  business,  or  to support or expand an existing small business in
New York state. The corporation shall establish criteria  for  selection
and designation of awardees which shall include, without limitation, the
following requirements:
(a)   any  applicant  for  a  grant  under  this  program  shall  have
successfully  completed  a  training  program  at  an   entrepreneurship
assistance  center  established  pursuant to section 211 of the economic
development law;
(b) an entrepreneur or small business owner shall not be eligible  for
more than one award under this program for the same small business; and
(c)  the recipient of the grant shall agree to maintain the operations
of the small business  for  which  the  grant  was  approved  physically
located  in the state for at least two years after receipt of the grant,
to the extent the business remains operational. Provided however that if
within two years of receiving the grant, such business is found to  have
moved  its  operations  outside  the  state,  the department may seek to
recapture the funds or a portion thereof.
2. The corporation may promulgate guidelines necessary  to  effectuate
the  purposes  of this section including, but not limited to, guidelines
setting  forth  procedures  for  submission  and  processing  of   grant
applications.
* NB Repealed July 2, 2025
§  16-ii.  Empire  AI  consortium  reports.  Beginning  May first, two
thousand twenty-seven, and annually thereafter,  the  corporation  shall
prepare  and  publish  on its website, an annual report on the empire AI
research institute at the  university  of  Buffalo.  Such  report  shall
include but not be limited to: detail on achieving the goals and mission
of  the  empire  AI  research  institute at the university of Buffalo, a
summary of the state investment into the empire AI research institute at
the university  of  Buffalo,  the  leveraged  investment,  job  creation
impact, the total investment, total funding disbursed by the corporation
to  date,  the  names  of  the private sector and academic partners that
participate in the empire AI research institute  at  the  university  of
Buffalo   and  affirmation  that  any  and  all  academic  partners  are
recognized by the board of regents as defined in section two hundred two
of the education law, a list of research areas of focus,  an  accounting
of  the  total  number  of  small  businesses  provided  access  to  the
supercomputing equipment, an assessment of whether or not  the  contract
awardee,  via  the  corporation,  is  in  compliance  with the terms and
conditions of the  contract  with  regard  to  the  empire  AI  research
institute   at  the  university  of  Buffalo,  an  articulation  of  any
additional state benefits  for  empire  state  development  projects  as
defined  in paragraph (a-3) of subdivision one of section fifty-eight of
this chapter. Additionally, in all years in which the institute is fully
operational,  such  report  shall   include   noteworthy   projects   or
innovations  which  serve to highlight the developments occurring in New
York state as a result of the project.
§ 17.  Bonds  and  notes  of  the  corporation.  (1)  Subject  to  the
provisions  of  section eighteen of this act, the corporation shall have
the power and is hereby authorized  from  time  to  time  to  issue  its
negotiable  bonds  and notes in conformity with applicable provisions of
the uniform commercial code  in  such  principal  amounts,  as,  in  the

opinion  of  the  corporation,  shall be necessary to provide sufficient
funds for achieving any of its corporate purposes, including the payment
of interest on bonds and notes  of  the  corporation,  establishment  of
reserves  to  secure such bonds and notes, and all other expenditures of
the corporation incident to and necessary or convenient to carry out its
corporate purposes and powers.
(2) All bonds and notes issued by the corporation may  be  secured  by
the  full  faith  and credit of the corporation or may be payable solely
out of the revenues and receipts derived from  the  lease,  mortgage  or
sale by the corporation of its projects or of any thereof, all as may be
designated  in  the proceedings of the corporation under which the bonds
or notes shall be authorized to be issued. Such bonds and notes  may  be
executed  and  delivered by the corporation at any time and from time to
time, may be in such form  and  denominations  and  of  such  tenor  and
maturities, may be in bearer form or in registered form, as to principal
and  interest  or  as  to  principal  alone,  all as the corporation may
determine.
(3) Bonds may be payable in such installments  and  at  such  time  or
times  not  exceeding  fifty  years  from  the date thereof, as shall be
determined by the corporation.
(4)  Notes,  or  any  renewals  thereof,  may  be  payable   in   such
installments  and  at  such  time or times as shall be determined by the
corporation, not exceeding ten years from the date of the original issue
of such notes.
(5) Bonds and notes may be payable at such  place  or  places  whether
within  or  without  the  state, may bear interest at such rate or rates
payable at such time or times and at such place or places and  evidenced
in  such  manner,  and  may  contain  such  provisions  not inconsistent
herewith, all as shall be provided in the proceedings of the corporation
under which the bonds or notes shall be authorized to be issued.
(6) If deemed advisable by the corporation, there may be  retained  in
the  proceedings  under  which any bonds or notes of the corporation are
authorized to be issued an option to redeem all or any part  thereof  as
may  be specified in such proceedings, at such price or prices and after
such notice or notices and on such terms and conditions as  may  be  set
forth in such proceedings and as may be recited in the face of the bonds
or  notes,  but nothing herein contained shall be construed to confer on
the corporation any right or option to redeem any bonds or notes  except
as may be provided in the proceedings under which they shall be issued.
(7) Any bonds or notes of the corporation may be sold at such price or
prices,  at public or private sale, in such manner and from time to time
as may be determined by the corporation, and the corporation may pay all
expenses, premiums and  commissions  which  it  may  deem  necessary  or
advantageous  in connection with the issuance and sale thereof. No bonds
or notes of the corporation may be sold at private sale, however, unless
such sale and the terms thereof have been approved in writing by (a) the
comptroller where such sale is not to the comptroller, or (b) the  state
director of the budget, where such sale is to the comptroller.
(8) Any moneys of the corporation, including proceeds from the sale of
any  bonds  or  notes, and revenues, reciepts and income from any of its
projects  or  mortgages,  may  be  invested  and  reinvested   in   such
obligations,  securities  and  other investments as shall be provided in
the resolution or resolutions  under  which  such  bonds  or  notes  are
authorized.
(9)  Issuance  by  the  corporation  of one or more series of bonds or
notes for one or more purposes shall not preclude it from issuing  other
bonds or notes in connection with the same project or any other project,
but  the  proceedings  whereunder  any  subsequent bonds or notes may be

issued shall recognize and protect any prior pledge or mortgage made for
any prior issue of bonds or notes unless in the proceedings  authorizing
such  prior  issue  the  right  is reserved to issue subsequent bonds or
notes on a parity with such prior issue.
(10)  The corporation is authorized to provide for the issuance of its
bonds or notes for the purpose of refunding any bonds or  notes  of  the
corporation  then  outstanding,  including the payment of any redemption
premium thereon and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase or maturity  of  such  bonds  or
notes,  and,  if deemed advisable by the corporation, for the additional
purpose  of  paying  all  or  any  part  of  the  cost   of   acquiring,
constructing,  reconstructing, rehabilitating, or improving any project,
or the making of any mortgage loan on any project. The proceeds  of  any
such  bonds  or  notes  issued  for the purpose of refunding outstanding
bonds or notes, may, in the discretion of the corporation, be applied to
the purchase or retirement at maturity or redemption of such outstanding
bonds or notes either on their earliest  or  any  subsequent  redemption
date,  and  may,  pending  such  application,  be placed in escrow to be
applied to such purchase or retirement at maturity or redemption on such
date as  may  be  determined  by  the  corporation.  Any  such  escrowed
proceeds,   pending   such  use,  may  be  invested  and  reinvested  in
obligations of or guaranteed by the United  States  of  America,  or  in
certificates  of  deposit or time deposits secured in such manner as the
corporation shall determine, maturing at such time or times as shall  be
appropriate  to assure the prompt payment, as to principal, interest and
redemption premium, if any, on the outstanding bonds or notes to  be  so
refunded.  The  interest, income and profits, if any, earned or realized
on any such investment may  also  be  applied  to  the  payment  of  the
outstanding  bonds  or  notes  to be so refunded. After the terms of the
escrow have been fully satisfied and carried out, any  balance  of  such
proceeds and interest, income and profits, if any, earned or realized on
the investments thereof may be returned to the corporation for use by it
in  any  lawful manner. The portion of the proceeds of any such bonds or
notes issued for the additional purpose of paying all or any part of the
cost of  acquiring,  constructing,  reconstructing,  rehabilitating,  or
improving  any  project,  or  the  making  of  any  mortgage loan on any
project, may be invested and reinvested in obligations of or  guaranteed
by  the  United  States  of America, maturing not later than the time or
times when such proceeds will be needed for the purpose of paying all or
any part of such cost, or the making of  any  such  mortgage  loan.  The
interest,  income  and  profits,  if  any,  earned  or  realized on such
investments may be applied to the payment of all or  any  part  of  such
cost,  or  the  making  of any such mortgage loan, or may be used by the
corporation in any lawful manner. All  such  bonds  or  notes  shall  be
issued and secured and shall be subject to the provisions of this act in
the  same  manner  and  to  the  same extent as any other bonds or notes
issued pursuant to this act.
§ 18. Bond authorization. The corporation shall not  issue  bonds  and
notes in an aggregate principal amount exceeding one billion two hundred
ninety-five  million  dollars,  excluding  (1) bonds and notes issued to
refund or otherwise repay outstanding bonds and notes of the corporation
or of the New York state project finance agency, (2) notes issued by the
corporation to evidence eligible loans made to the corporation  pursuant
to  the  New  York  state  project finance agency act, and (3) bonds and
notes issued with the approval of the state director of the  budget  and
the New York state public authorities control board which are secured by
and  payable  solely out of a specific project, other than a residential
project,  undertaken  by  the  corporation  subsequent  to  June  first,

nineteen  hundred  seventy-seven,  and the revenues and receipts derived
therefrom, without recourse against other assets of the  corporation  or
against   a   debt  service  reserve  fund  to  which  state  funds  are
apportionable  pursuant  to  subdivision three of section twenty of this
act, provided that the  corporation  shall  not  issue  bonds  or  notes
pursuant  to this clause (3) if (a) (i) the arrangements under which the
project is undertaken do not provide for annual real property taxes,  or
payments  in  lieu of real property taxes, on the real property included
in the project securing such bonds or  notes  which  together  at  least
equal  the  average  annual  real  property  taxes  which were paid with
respect to such real property for three years prior to  the  acquisition
of  such  project  or  any  portion  thereof  by  the  corporation  or a
subsidiary  thereof,  and  (ii)  after  a  public  hearing,  the   local
legislative  body  of the city, town or village in which such project is
to be located has not consented to such arrangements, provided, however,
that in a city having a population of one million or more  such  consent
shall  be  given  by  the  board  of  estimate  of such city, or (b) the
aggregate principal amount of any such bonds  and  notes  is  less  than
twice  the  amount  of  any  moneys  appropriated  by the state and made
available by the corporation to the  project  securing  such  bonds  and
notes,  or  (c)  the  aggregate  principal amount of the bonds and notes
issued pursuant to this clause (3) will  thereby  exceed  three  hundred
seventy-nine million dollars, excluding bonds and notes issued to refund
or  otherwise  repay outstanding bonds and notes issued pursuant to this
clause (3), provided, however, that the corporation may  provide  for  a
pooled  financing  arrangement  with  regard  to  bonds  issued  for the
purposes of financing the construction  of  the  Center  for  Computers,
Microelectronics  and  Telecommunications  at  Columbia  University, the
Center for Science and Technology at Syracuse  University,  the  Cornell
Super  Computer  Center  at  Cornell  University,  the  Onondaga  County
Convention Center Complex, the Center for Advanced Materials  Processing
at   Clarkson  University,  the  Center  for  Electro-Optic  Imaging  at
University of Rochester, the Center  for  Neural  Science  at  New  York
University,  the  Alfred  University  Incubator  Facilities  in Allegany
County and Steuben County, the Broadway Redevelopment Project,  and  the
Sematech Semiconductor facility, and, that the aggregate amount of bonds
which may be issued pursuant to this clause (3) shall be increased above
the  amounts in the following schedule for the purposes of providing for
the costs of issuance including any debt  service  reserve  requirements
that may be necessary in accordance with the following schedule:
Schedule
Project                                 Amount
The Carborundum Company
Niagara Falls............................  4,400,000
Hooker Chemicals & Plastics Corporation
Niagara Falls............................ 13,500,000
Moog, Inc.
Town of Elma.............................  8,925,000
Sybron Corporation
Rochester................................  6,600,000
Refined Syrups & Sugars, Inc.
Yonkers..................................  7,500,000
Sheraton Hotel
Utica....................................  4,300,000
Urban Renewal Parcel
Office Building
Utica....................................  5,000,000

Downtown Retail Center
Binghamton...............................  3,000,000
American Stock Exchange/Office Facility
New York City............................         -0
New Printing Plant
New York City (Bronx).................... 16,000,000
New Electronics Manufacturing Plant
New York City (Bronx)....................  8,000,000
Savin Corporation
Binghamton...............................  6,000,000
Industrial Renewal Project
New York City (Brooklyn).................  2,700,000
Manufacturing Plant Expansion
New York City (Bronx).................... 15,000,000
Shopping Mall
City of Buffalo..........................  2,100,000
Nettleton Shoe
Syracuse.................................  2,200,000
Batten Kill Railroad Project
Warren/Washington Counties...............  2,250,000
Carrier Corporation
Onondaga County.......................... 27,000,000
Center for Industrial Innovation
City of Troy............................. 33,000,000
Fordham Plaza
New York City (Bronx).................... 10,000,000
Freezer Queen Foods, Inc.
Buffalo..................................  2,380,000
Chelsea Homes Project
Marlboro (Ulster County).................  2,700,000
Columbia University
Center for Computers, Microelectronics
and Telecommunications
City of New York......................... 36,000,000
Syracuse University
Center for Science and Technology
City of Syracuse......................... 27,000,000
Cornell University
Cornell Super Computer Center
City of Ithaca...........................  5,000,000
Onondaga County Convention
Center Complex at Syracuse............... 40,000,000
Clarkson University
Center for Advance
Materials Processing..................... 23,500,000
University of Rochester
Center for Elector-Optic Imaging......... 10,000,000
New York University
Center for Neural Science................  5,000,000
Alfred University Incubator Facilities in
Allegany County and Steuben County....... 10,000,000
Broadway Redevelopment Project
at Schenectady...........................  5,500,000
Albany International
East Greenbush (Rensselaer County).......  2,500,000
Sematech Semi-Conductor Facility
New York State........................... 40,000,000

Stony Brook Incubator
Project..................................  2,305,000
-----------
Total of Schedule...................... $389,360,000
============
The  amounts  in  the  above  schedule  are  interchangeable among the
projects listed but in no case may be used to fund or initiate any other
project.
§ 19. Security for bonds or notes;  construction  and  acquisition  of
projects. (1) The principal of and interest on any bonds or notes issued
by  the  corporation  may  be  secured  by  a pledge of any revenues and
receipts of the corporation and may be secured by a  mortgage  or  other
instrument  covering  all  or  any  part  of  a  project,  including any
additions, improvements, extensions to or enlargements of  any  projects
thereafter made.
(2)   Bonds   or  notes  issued  for  the  acquisition,  construction,
reconstruction, rehabilitation, or improvement of a project may also  be
secured by an assignment of any lease of or mortgage on such project and
by an assignment of the revenues and receipts derived by the corporation
from any such lease or mortgage.
(3) The resolution under which the bonds or notes are authorized to be
issued  and  any  such  mortgage,  lease or other instrument may contain
agreements and provisions respecting the  maintenance  of  the  projects
covered  thereby,  the  fixing and collection of rents or other revenues
therefrom, including monies received in repayment of mortgage loans, and
interest thereon, the creation and maintenance  of  special  funds  from
such  rents  or  other revenues and the rights and remedies available in
the event of default, all as the corporation shall deem advisable.
(4) Each pledge, agreement, mortgage or other instrument made for  the
benefit  or  security  of  any  of the bonds or notes of the corporation
shall continue effective until the principal  of  and  interest  on  the
bonds  or  notes  for the benefit of which the same were made shall have
been fully paid, or until  provision  shall  have  been  made  for  such
payment  in  the  manner provided in the resolution or resolutions under
which the same may be authorized.
(5) The corporation may provide in any proceedings under  which  bonds
or  notes  may  be  authorized  that  any project or part thereof may be
constructed,   reconstructed,   rehabilitated   or   improved   by   the
corporation,  any  subsidiary,  or  any  lessee  or  any designee of the
corporation, and may also provide in such proceedings for the  time  and
manner  of  and  requisites for disbursements to be made for the cost of
such construction, and  for  all  such  certificates  and  approvals  of
construction  and  disbursements as the corporation shall deem necessary
and provide for in such proceedings.
(6) Any resolution or resolutions or  trust  indenture  or  indentures
under  which  bonds  or  notes  of  the corporation are authorized to be
issued may contain provisions for vesting in a trustee or trustees  such
properties,  rights,  powers  and duties in trust as the corporation may
determine which may include any or all of the rights, powers and  duties
of  the  trustee appointed by the holders of any issue of notes or bonds
pursuant to section  twenty-seven  of  this  act,  in  which  event  the
provisions of said section twenty-seven authorizing the appointment of a
trustee by such holders of bonds or notes shall not apply.
(7)  It  is  the  intention  hereof  that any pledge or assignment for
security made by the corporation shall be valid  and  binding  from  the
time  when  the  same is made; that the monies or property so pledged or
assigned and then held or thereafter received by the  corporation  shall

immediately  be  subject to the lien or security interest of such pledge
or assignment without any physical delivery thereof or further act;  and
that  the  lien  or  security  interest of any such pledge or assignment
shall  be  valid and binding as against all parties having claims of any
kind  in  tort,  contract  or   otherwise   against   the   corporation,
irrespective  of  whether  such parties have notice thereof. Neither the
resolution nor  any  other  instrument  by  which  any  such  pledge  or
assignment  is  created  need be recorded, and no filing with respect to
such pledge or assignment need be  made  under  the  uniform  commercial
code.
§ 20. Reserve funds and appropriations. (1) The corporation may create
and  establish  one  or  more  reserve funds to be known as debt service
reserve funds and may  pay  into  such  reserve  funds  (a)  any  moneys
appropriated  and  made  available by the state for the purposes of such
funds, (b) any proceeds of  sale  of  bonds  and  notes  to  the  extent
provided  in  the resolution of the corporation authorizing the issuance
thereof, and (c) any other moneys which may be  made  available  to  the
corporation  for  the  purposes  of  such funds from any other source or
sources. The moneys held in or credited to any debt service reserve fund
established under this  subdivision,  except  as  hereinafter  provided,
shall  be  used  solely for the payment of the principal of bonds of the
corporation secured by such  reserve  fund,  as  the  same  mature,  the
purchase  of  such  bonds of the corporation, the payment of interest on
such bonds of the corporation or the payment of any  redemption  premium
required  to  be  paid  when  such bonds are redeemed prior to maturity;
provided, however, that moneys in any such fund shall not  be  withdrawn
therefrom  at any time in such amount as would reduce the amount of such
fund to less than the maximum amount of principal and interest  maturing
and  becoming  due  in  any succeeding calendar year on the bonds of the
corporation then outstanding and secured by such  reserve  fund,  except
for  the  purpose  of  paying principal and interest on the bonds of the
corporation secured by such reserve fund maturing and becoming  due  and
for  the  payment  of  which  other  moneys  of  the corporation are not
available. Any income or interest earned by, or increment to,  any  such
debt  service  reserve  fund  due  to  the  investment  thereof  may  be
transferred to any other fund or  account  of  the  corporation  to  the
extent  it  does not reduce the amount of such debt service reserve fund
below the maximum amount of principal and interest maturing and becoming
due in any succeeding calendar year on all bonds of the corporation then
outstanding and secured by such reserve fund.
(2) The corporation shall not issue bonds at any time if  the  maximum
amount  of  principal  and  interest  maturing  and  becoming  due  in a
succeeding calendar year on the bonds outstanding and then to be  issued
and  secured  by  a  debt service reserve fund will exceed the amount of
such reserve fund at the time of issuance, unless  the  corporation,  at
the  time  of issuance of such bonds, shall deposit in such reserve fund
from the proceeds of the bonds so to be issued, or otherwise, an  amount
which  together  with  the amount then in such reserve fund, will be not
less than the maximum amount of  principal  and  interest  maturing  and
becoming  due  in  any  succeeding calendar year on the bonds then to be
issued and on all other bonds of the corporation  then  outstanding  and
secured by such reserve fund.
(3)  To assure the continued operation and solvency of the corporation
for the carrying out of the public purposes of  this  act  provision  is
made  in  subdivision  one  of this section for the accumulation in each
debt service reserve fund of an amount equal to the  maximum  amount  of
principal  and  interest  maturing  and  becoming  due in any succeeding
calendar year on all bonds  of  the  corporation  then  outstanding  and

secured by such reserve fund. In order further to assure the maintenance
of  such debt service reserve funds, there shall be annually apportioned
and paid to the corporation for deposit in  each  debt  service  reserve
fund  such  sum,  if  any,  as shall be certified by the chairman of the
corporation to  the  governor  and  state  director  of  the  budget  as
necessary to restore such reserve fund to an amount equal to the maximum
amount  of  principal  and  interest  maturing  and  becoming due in any
succeeding  calendar  year  on  the  bonds  of  the   corporation   then
outstanding  and  secured  by  such  reserve  fund.  The chairman of the
corporation shall annually,  on  or  before  December  first,  make  and
deliver to the governor and state director of the budget his certificate
stating  the  sum,  if  any,  required to restore each such debt service
reserve fund to the amount aforesaid, and the sum or sums so  certified,
if any, shall be apportioned and paid to the corporation during the then
current state fiscal year.
(4)  In  computing  any  debt service reserve fund for the purposes of
this section, securities in which all or a portion of such reserve  fund
shall  be  invested shall be valued at par, or if purchased at less than
par, at their cost to the corporation.
(5) With respect to  any  project,  the  corporation  may  create  and
establish  a  special  fund  to be known as the project reserve fund and
deposit therein (a) any moneys appropriated and made  available  by  the
state  for  the  purposes  of  such  fund,  (b)  such  amount  as may be
determined by the corporation  in  connection  with  any  lease  by  the
corporation  to  others to be charged to such lessee for deposit in such
fund, and (c) any other moneys  which  may  be  made  available  to  the
corporation  for  the  purpose  of  such  fund  from any other source or
sources. All moneys held in or credited  to  any  project  reserve  fund
shall  be first used for the payment of the principal of and interest on
the bonds or notes of the corporation issued for the project secured  by
such  project  reserve  fund  in  the  event  that  other  moneys of the
corporation, other than moneys held in the debt  service  reserve  fund,
are  not available for such purpose. Upon the retirement of the bonds or
notes of the corporation issued for the project secured by such  project
reserve fund, moneys so held in such fund may be used by the corporation
for any lawful purpose.
§  21.  Trust  funds. All moneys received pursuant to the authority of
this act, whether as proceeds from the sale of  bonds  or  notes  or  as
revenues,  receipts  or  income, shall be deemed to be trust funds to be
held and applied solely as provided in the proceedings under which  such
bonds  or  notes  are  authorized.  Any officer with whom or any bank or
trust company with which such  moneys  shall  be  deposited  as  trustee
thereof  shall hold and apply the same for the purposes thereof, subject
to such provisions as this act and the proceedings authorizing the bonds
or notes of any issue or the trust  agreement  securing  such  bonds  or
notes may provide.
§  22.  Exemption from taxation. The exercise of the powers granted by
this act will be in all respects for the benefit of the people  of  this
state,  for  the increase of their commerce, welfare and prosperity, and
for the improvement of their health  and  living  conditions,  and  will
constitute the performance of an essential governmental function and the
corporation and its subsidiaries shall not be required to pay any taxes,
other  than  assessments for local improvements, upon or in respect of a
project or of any property or moneys of the corporation or  any  of  its
subsidiaries, levied by any municipality or political subdivision of the
state,  nor shall the corporation or its subsidiaries be required to pay
state  taxes  of  any  kind,  and  the  corporation,  its  subsidiaries,
projects,  property and moneys and, except for estate and gift taxes and

taxes on transfers, any bonds or notes issued under  the  provisions  of
this  act  and  the  income  therefrom,  shall at all times be free from
taxation of every kind by the state and by the  municipalities  and  all
other political subdivisions of the state.
§ 23. Notes and bonds as legal investments. The notes and bonds of the
corporation  are hereby made securities in which all public officers and
bodies of this state and all municipalities and municipal  subdivisions,
all  insurance companies and associations, and other persons carrying on
an insurance business, all  banks,  bankers,  trust  companies,  savings
banks and savings associations, including savings and loan associations,
building  and  loan associations, investment companies and other persons
carrying  on  a  banking  business,   all   administrators,   guardians,
executors,  trustees  and  other  fiduciaries,  and  all  other  persons
whatsoever who are now or may hereafter be authorized to invest in bonds
or other obligations of the  state,  may  properly  and  legally  invest
funds, including capital, in their control or belonging to them.
§  24.  Agreement  with the state. The state does hereby pledge to and
agree with the holders of any bonds or notes issued under this act, that
the state will not limit or  alter  the  rights  hereby  vested  in  the
corporation to fulfill the terms of any agreements made with the holders
thereof,  or  in  any way impair the rights and remedies of such holders
until such bonds or notes, together  with  the  interest  thereon,  with
interest  on  any  unpaid  installments  of  interest, and all costs and
expenses in connection with any action or proceeding by or on behalf  of
such   holders,  are  fully  met  and  discharged.  The  corporation  is
authorized to include this pledge and agreement  of  the  state  in  any
agreement with the holders of such bonds or notes.
§  25.  State's  right to require redemption of bonds. Notwithstanding
and in addition to any provisions for the redemption of bonds which  may
be  contained  in  any contract with the holders of the bonds, the state
may, upon furnishing sufficient funds therefor, require the  corporation
to  redeem,  prior  to  maturity,  as a whole, any issue of bonds on any
interest payment date not less than twenty years after the date  of  the
bonds  of  such issue at one hundred five per centum of their face value
and accrued interest or  at  such  lower  redemption  price  as  may  be
provided  in  the  bonds in case of the redemption thereof as a whole on
the redemption date. Notice of such redemption  shall  be  published  at
least  twice  in  at  least  two  newspapers  publishing and circulating
respectively in the cities of Albany and New York, the first publication
to be at least thirty days before the date of redemption. The provisions
of this section relating to the state's right to require  redemption  of
bonds  shall  not  apply  to state-supported debt, as defined by section
67-a  of  the  state  finance  law,  issued  by  the  corporation.  Such
corporation  bonds  shall  remain  subject to redemption pursuant to any
contract with the holders of such bonds.
§ 26. State payments to municipalities and political subdivisions.  In
order  to prevent undue loss of revenues to municipalities and political
subdivisions, there shall be annually apportioned and paid by the state,
during the then current  state  fiscal  year,  to  any  municipality  or
political  subdivision  in which an industrial project is located, a sum
equal to one hundred per centum of  the  average  annual  real  property
taxes  paid  or due to such municipality or political subdivision on the
real property constituting the project site for three years prior to the
time of its acquisition by the corporation or subsidiary thereof, or  in
the  case  of  real  property  acquired by the corporation from an urban
renewal agency or from a municipality which acquired such  property  for
urban  renewal  purposes,  for  three  years  prior  to  the time of its
acquisition by such urban renewal agency or municipality.  The  chairman

of the corporation shall annually, on or before December first, make and
deliver  to  the  governor  and  director  of the budget his certificate
stating the sum, if any, required to be paid to  each  municipality  and
political  subdivision  by  reason  of  tax  exemptions  for  industrial
projects received pursuant to section twenty-two of this  act,  and  the
sum  or sums so certified, if any, shall be apportioned and paid to each
such municipality and political subdivision, as  provided  herein.  Such
apportionment  and  payment  shall also be made to each municipality and
political  subdivision  in  which  is  located  real  property  of   the
corporation  as  to  which  no  project  findings  have been made by the
corporation, pursuant to section ten hereof, and  the  chairman  of  the
corporation  shall  certify  the  sums required to be paid in respect of
such real property, and the state shall apportion and pay such sums,  if
any, in the manner provided herein.
§  27. Remedies of noteholders and bondholders.  (1) In the event that
the corporation shall default in the payment of principal of or interest
on any issue of notes or bonds after the same shall become due,  whether
at maturity or upon call for redemption, and such default shall continue
for  a period of thirty days, or in the event that the corporation shall
fail or refuse to comply with the  provisions  of  this  act,  or  shall
default  in any agreement made with the holders of any issue of notes or
bonds, the holders of twenty-five  per  centum  in  aggregate  principal
amount  of  the  notes  or  bonds  of  such  issue  then outstanding, by
instrument or instruments filed in the office of the clerk of the county
of Albany and approved or acknowledged in the same manner as a  deed  to
be  recorded,  may  appoint  a  trustee to represent the holders of such
notes or bonds for the purposes herein provided.
(2) Such trustee may, and upon  written  request  of  the  holders  of
twenty-five  per  centum in principal amount of such notes or bonds then
outstanding shall, in his or its own name:
(a) by suit,  action  or  proceeding  in  accordance  with  the  civil
practice  law  and  rules,  enforce  all  rights  of  the noteholders or
bondholders,  to  require  the  corporation  to  carry  out  any   other
agreements  with  the  holders of such notes or bonds and to perform its
duties under this act;
(b) bring suit upon such notes or bonds;
(c) by action or suit, require the corporation to  account  as  if  it
were  the  trustee  of an express trust for the holders of such notes or
bonds;
(d) by action or suit, enjoin any acts or things which may be unlawful
or in violation of the rights of the holders of such notes or bonds;
(e) declare all such notes or  bonds  due  and  payable,  and  if  all
defaults  shall  be  made good, then, with the consent of the holders of
twenty-five per centum of the principal amount of such  notes  or  bonds
then outstanding, to annul such declaration and its consequences.
(3)  Such  trustee shall in addition to the foregoing have and possess
all of the powers necessary or  appropriate  for  the  exercise  of  any
functions  specifically  set  forth  herein  or  incident to the general
representation of bondholders or  noteholders  in  the  enforcement  and
protection of their rights.
(4)  The  supreme court shall have jurisdiction of any suit, action or
proceeding by the trustee on behalf of such noteholders or  bondholders.
The  venue  of  any such suit, action or proceeding shall be laid in the
county in which the principal office of the corporation is located.
(5) Before declaring the principal of notes or bonds due and  payable,
the  trustee  shall  first  give  thirty  days  notice in writing to the
governor, to the corporation, and to the attorney general of the state.
§ 28. Monies of the corporation. (1) All monies  of  the  corporation,
except as otherwise authorized or provided in this act, shall be paid to
the  commissioner  of  taxation and finance as agent of the corporation,
who shall not commingle such monies with any other monies.  Such  monies
shall be deposited in a separate bank account or accounts. The monies in
such  accounts shall be paid out on checks signed by the commissioner of
taxation and finance on requisition of the chairman of  the  corporation
or  of  such  other  officer or employee or officers or employees as the
corporation shall authorize to make such requisition.  All  deposits  of
such  monies  shall,  if  required  by  the commissioner of taxation and
finance or the corporation, be secured  by  obligations  of  the  United
States  or  of  the  state  of  a market value equal at all times to the
amount of the deposit, and all banks and trust companies are  authorized
to give such security for such deposits.
Notwithstanding  the provisions of this section, the corporation shall
have power to contract with the holders of any of its notes or bonds, as
to the custody, collection, securing, investment,  and  payment  of  any
monies  of the corporation, of any monies held in trust or otherwise for
the payment of notes or bonds, and to carry out  such  contract.  Monies
held  in  trust or otherwise for the payment of notes or bonds or in any
way to secure notes or bonds and deposits of such monies may be  secured
in the same manner as monies of the corporation, and all banks and trust
companies are authorized to give such security for such deposits.
(2)  Subject  to  agreements  with noteholders and bondholders and the
approval of the comptroller, the corporation shall prescribe a system of
accounts.
(3) The comptroller, or  his  legally  authorized  representative,  is
hereby  authorized  and empowered from time to time to examine the books
and accounts of the corporation including its  receipts,  disbursements,
contracts,  reserve  funds,  sinking  funds,  investments, and any other
matters relating to its financial standing. Such an examination shall be
conducted by the comptroller at least once  in  every  five  years;  the
comptroller  is  authorized, however, to accept from the corporation, in
lieu of such an examination, an external examination of  its  books  and
accounts made at the request of the corporation.
(4)  The  corporation  shall  submit  to the governor, chairman of the
senate finance committee,  chairman  of  the  assembly  ways  and  means
committee and the comptroller, within thirty days of the receipt thereof
by  the  corporation, a copy of the report of every external examination
of the books and accounts of the corporation other than  copies  of  the
reports of such examinations made by the comptroller.
§   29.   Assistance   by  state  officers,  departments,  boards  and
commissions. (1) The department of audit and control, department of law,
and all other state agencies may render such services to the corporation
within  their  respective  functions  as  may  be   requested   by   the
corporation.
(2)  Upon  request  of  the  corporation,  any  state agency is hereby
authorized and empowered to transfer to the  corporation  such  officers
and  employees  as it may deem necessary from time to time to assist the
corporation in carrying out its functions and  duties  under  this  act.
Officers and employees so transferred shall not lose their civil service
status or rights.
(3) In order most effectively to carry out its corporate purposes, the
corporation  shall  assist  and cooperate with the corporation for urban
development and research of New York, created  by  the  New  York  state
urban development and research act.
§   30.  Reports  and  evaluations.  (a)  Annual  fiscal  report.  The
corporation shall submit to the governor, the  chairman  of  the  senate

finance   committee,  the  chairman  of  the  assembly  ways  and  means
committee, the comptroller and the  director  of  the  budget  within  6
months  after the end of its fiscal year, a complete and detailed report
setting  forth: (1) its operations and accomplishments; (2) its receipts
and  expenditures  during  such  fiscal  year  in  accordance  with  the
categories  or  classifications  established  by the corporation for its
operating and capital  outlay  purposes,  including  a  listing  of  all
private consultants engaged by the corporation on a contract basis and a
statement  of the total amount paid to each such private consultant; (3)
its assets and liabilities at the end of its fiscal  year,  including  a
schedule  of its leases and mortgages and the status of reserve, special
or other funds; and (4) a schedule of its bonds and notes outstanding at
the end of its fiscal year, together with a  statement  of  the  amounts
redeemed and incurred during such fiscal year.
(b)  Annual  program report. The corporation shall report on an annual
basis beginning October 1, 2005, and on each October  1  thereafter,  to
the  governor,  the  chairpersons  of  the senate committees on finance,
commerce, economic development and  small  business,  and  corporations,
authorities and commissions, the chairpersons of the assembly committees
on  ways  and  means,  economic  development, job creation, commerce and
industry, corporations, authorities and commissions, and small  business
on each of the financial assistance programs, and for each program, each
category of assistance administered by the corporation, identifying each
proposal  for  assistance through such program for which the corporation
has received a formal application or otherwise has begun to undertake an
analysis.
(1) For those requests which are currently being evaluated  but  which
have  not  yet  been approved such description shall include, but not be
limited to, the name and  location  of  the  applicant,  the  amount  of
assistance  requested,  the  date  of  receipt  of such request, and the
status of such request.
(2)  In  providing  such  report,  where  necessary  to  promote   the
development  of proposed projects, the corporation may delete references
to the specific names of the participants, instead making references  to
them  in  some  other  form  so  as  to make it possible to identify the
progress of specific proposals.
(3) Such report shall provide a breakdown, for  each  of  the  regions
established  pursuant to section 230 of the economic development law, of
proposals for assistance through each program. In addition, such  report
shall  summarize,  by  program,  the  data  reported  pursuant  to  this
paragraph.
(4) For those requests which have been  evaluated  and  for  which  no
further  action  has  been  recommended,  the  corporation shall present
summary data indicating why no further action was taken.
(5) The corporation shall make available to each  of  the  legislative
committees  specified  in  this  subdivision,  a  copy  of the materials
provided to its board prior to each board meeting.
(c) Evaluations. (1) In addition to any other requirements imposed  by
the  act  or otherwise regarding evaluations of programs administered by
the corporation, each evaluation shall include an analysis  of  the  job
creation  effect  of  such  program, the number of small businesses that
received assistance, the number of minority and women-owned  firms  that
received assistance, the number of projects undertaken in distressed and
highly   distressed  communities,  and,  if  applicable,  the  repayment
experience of borrowers of funds from the corporation.
(2) (i) In the case of any assistance  programs  administered  by  the
corporation   for   which  independent  evaluations  are  not  otherwise
required, the corporation shall submit to the director  of  the  budget,

the  chairperson  of the senate finance committee and the chairperson of
the assembly ways and means committee an  evaluation  of  such  programs
prepared  by  an entity independent of the corporation. Such evaluations
shall  be  submitted  by September 1, 2005 and by September 1 every four
years thereafter.
(ii) Between evaluation due dates, the corporation shall maintain  the
necessary   records   and  data  required  to  satisfy  such  evaluation
requirements and to  satisfy  information  requests  received  from  the
director  of the budget, the chairperson of the senate finance committee
and the chairperson of the assembly ways  and  means  committee  between
such evaluation due dates.
§ 30-a. With respect to applications for assistance submitted pursuant
to this act:
(a)  The  corporation  shall,  upon receipt of an application or other
formal request for funding for  any  project,  provide  notice  of  such
application  or  request  within ten days of such receipt to the senator
and member of assembly representing the district in which  such  project
is to be located;
(b)  The  corporation  shall  provide  copies  of  all  correspondence
relating to each such application to such senator or member of  assembly
on  a  timely basis; provided, however, that proprietary information may
be withheld from such correspondence  if  such  senator  and  member  of
assembly is given notice that such information has been withheld;
(c)  Such senators and members of assembly shall be provided notice of
all proceedings relating to such application and  shall  be  invited  to
participate  in  such  proceedings.  A copy of such notice shall also be
provided to the designees of the temporary president of the  senate  and
the speaker of assembly;
(d)  Such  senators  and  members  of  assembly shall be provided with
notice of the final disposition of the application  by  the  corporation
and the reasons for such disposition;
(e)  In  order  to  ensure  that  the  funds appropriated for existing
statutory programs are approved  in  a  equitable,  ratable  and  timely
manner, the corporation shall:
(1)  require  all  projects,  including  those  in  an amount of fifty
thousand dollars or less, be approved by  the  governing  board  of  the
corporation  and  included in the agenda and the minutes of the meetings
of the board, accompanied by a summary of the proposed project  and  the
source of funds used to finance the project; and
(2)  require  projects to be financed out of the empire state economic
development fund be approved generally in amounts which are proportional
to amounts appropriated for the urban and community development program,
and the  minority  and  women-owned  business  development  and  lending
program;
(f)  The  corporation  shall accept no funds through transfer from the
department of economic development for personal or  nonpersonal  service
expenses,  except  for  economic  development  program  funds where such
transfer will  facilitate  the  prompt  and  effective  distribution  of
program  funds  to  projects, provided that those funds are used for the
statutory purposes for which they were appropriated to the department of
economic development;
(g) No later than twenty days  after  the  end  of  each  fiscal  year
quarter, the chairman of the urban development corporation shall:
(1)  report  to  the  senate  majority  leader  and the speaker of the
assembly on the status of all economic development programs administered
during the current fiscal year. Such report shall  include  but  not  be
limited to:
(A)  a  cumulative summary of commitments and disbursements by year of
original appropriation;
(B) the geographic distribution of approved projects;
(C)  the  extent  to which approved projects are expected to create or
retain jobs in New York state; and
(D) the impact of approved projects, where quantified  and  available,
on  distressed  urban  and  rural  communities,  small- and medium-sized
businesses, and strategic industries.
(2) Copies of such report shall also be provided to the  designees  of
the temporary president of the senate and the speaker of the assembly in
both paper and electronic format;
(h)  If:  (1)  such  report is not submitted on or before the required
date, or (2) the corporation has failed to undertake a good faith effort
to comply with this act, upon a written determination of  non-compliance
issued,  not  more  than quarterly, by either the temporary president of
the senate or speaker of the assembly, the corporation  agrees  that  it
shall  approve  no  further  project  commitments  from the empire state
economic development fund and no state funds appropriated from the local
assistance account shall  be  allocated  to  the  corporation  for  such
commitments  until  such report is submitted or the corporation provides
evidence of good faith  effort  to  be  in  compliance  with  provisions
hereof; and
(i)  Upon  the issuance of such a determination of non-compliance, the
corporation shall undertake the  necessary  acts  to  comply  with  this
agreement  and shall provide evidence of such compliance within ten days
of receipt of such determination.
§ 31. Court proceedings; preferences; venue. Any action or  proceeding
to  which  the corporation or the people of the state of New York may be
parties, in which any question arises as to the validity  of  this  act,
shall be preferred over all other civil causes except election causes in
all courts of the state of New York and shall be heard and determined in
preference  to  all other civil business pending therein except election
causes, irrespective of position on the calendar.  The  same  preference
shall  be  granted upon application of counsel to the corporation in any
action or proceeding questioning the validity of this act  in  which  he
may  be allowed to intervene. The venue of any such action or proceeding
shall be laid in the  county  in  which  the  principal  office  of  the
corporation is located.
§  31-a. Actions against corporation. Except in an action for wrongful
death, in any case founded upon tort a notice of claim shall be required
as a condition precedent to the commencement of  an  action  or  special
proceeding  against  the corporation, any of it subsidiary corporations,
or any officer, appointee or employee thereof,  and  the  provisions  of
section  fifty-e of the general municipal law shall govern the giving of
such notice. No such action shall be commenced more than  one  year  and
ninety  days  after  the cause of action therefor shall have accrued. An
action for wrongful death shall be  commenced  in  accordance  with  the
notice  of  claim  and  time  limitation  provisions  of title eleven of
article nine of the public authorities law.
§ 32. Special provisions relating to directors of the corporation  and
members   of  the  business  advisory  council  for  urban  development.
Notwithstanding  the  provisions   of   any   other   law,   any   state
instrumentality,  including  any  state  agency,  trust  fund  or public
benefit corporation other than the corporation, may purchase from,  sell
to,  borrow  from,  loan  to,  contract  with or otherwise deal with any
corporation, trust, association, partnership or other  entity  in  which
any  director  of the corporation or any member of the business advisory
council for urban development, created by section four of this act,  has

a financial interest, direct or indirect, and the corporation may engage
in  any such transaction with any other state instrumentality with which
any director of the corporation is affiliated  as  a  state  officer  or
employee,  provided  that  prior  to  such  transaction such interest or
affiliation is disclosed to such  other  state  instrumentality  and  is
disclosed  in  the minutes of the corporation, and provided further that
no director having such an affiliation (except such an affiliation  with
a subsidiary corporation of the corporation organized in accordance with
section  twelve  of  this  act  or  with  any  authority  or  commission
heretofore  or  hereafter  continued  or  created   under   the   public
authorities  law)  may  participate  in  any decision of the corporation
affecting such transaction.
§ 33. Inconsistent provisions of other laws superseded. Insofar as the
provisions of this act are inconsistent with the provisions of any other
law, general, special or local, the provisions  of  this  act  shall  be
controlling.
§  34.  Construction. This act, being necessary for the welfare of the
state and its  inhabitants,  shall  be  liberally  construed  so  as  to
effectuate its purposes.
§  35.  Separability.  If  any clause, sentence, paragraph, section or
part  of  this  act  shall  be  adjudged  by  any  court  of   competent
jurisdiction  to  be  invalid, such judgment shall not affect, impair or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph, section  or  part  thereof  directly
involved  in  the  controversy  in  which  such judgment shall have been
rendered.
§ 36. Limitation on new projects
The corporation shall not expend any proceeds of the  sale  of  assets
to,  or  borrowings  from, the New York state project finance agency for
the construction or development of any new  project  which  on  February
twenty-fifth,  nineteen hundred seventy-five, was not under construction
by the corporation, or the subject of  a  contract  or  legally  binding
commitment for the construction or financing thereof by the corporation,
except for expenditures related to the prompt and orderly termination of
the corporation's activities in relation to a project that was not under
construction or subject to such a contract or legally binding commitment
on that date.
§  37.  Assistance;  application  and  evaluation,  generally. (1) The
corporation shall develop  guidelines  for  application  for  assistance
through  each  of  its  programs  which  are  consistent  with the rules
published pursuant to section 9-c of this act and pursuant to the  state
administrative procedure act. Guidelines shall provide clear guidance to
potential  applicants  as to criteria for program eligibility, and shall
specify criteria used by the corporation in evaluating applications.
(2) The corporation shall prepare forms,  application  procedures  and
evaluation  processes which are consistent with the rules and guidelines
promulgated by the corporation and which are developed with the goal  of
making them easily understandable to applicants.
(3)  The  corporation  shall  make  available,  with the department of
economic development, applications and guidance to applicants  for  each
of  its programs of assistance at the regional offices of the department
of economic development.
(4) The corporation shall establish, by rule, procedures for  (i)  the
notification  to  each  applicant  for assistance of the receipt of such
application; (ii) notification to each applicant for assistance of  such
additional  materials as the corporation requires for evaluation of such
application; and (iii) periodic notifications not exceeding thirty  days
apart  to  each  applicant  of the status of such application. Such rule

shall specify uniform time periods within which  the  corporation  shall
make the notifications required by this paragraph.
(5) Whenever possible, the corporation shall render a determination on
an  application within thirty working days of the receipt of a completed
application including necessary  documentation.  In  the  event  that  a
determination  cannot  be  reached within the thirty working day period,
the corporation shall submit to the applicant a statement of the reasons
for such delay upon or prior to the expiration of the thirty working day
period.
(6) Upon approval of an  application  for  financial  assistance,  the
corporation  shall inform the recipient of all steps which must be taken
in order to receive the promised assistance. The requirements imposed by
the corporation shall be pursuant to statute or rules  adopted  pursuant
to the state administrative procedure act.
§  38.  Small  business  and  minority-owned  and women-owned business
enterprises  transportation  capital  assistance  and  guaranteed   loan
program.  1.  To  provide  financial  assistance  to  small business and
minority-owned  and  women-owned   business   enterprises   engaged   in
government  sponsored, transportation related construction projects, the
corporation shall establish a  small  business  and  minority-owned  and
women-owned   business   enterprise  transportation  capital  assistance
revolving loan fund which shall provide  loans  or  loan  guarantees  to
small  business and minority-owned and women-owned business enterprises.
For purposes of this section: (a) the term small business shall have the
same meaning as  defined  in  section  one  hundred  thirty-one  of  the
economic  development  law and (b) the term project shall mean a project
of state  agency  or  authority  that  sponsors  transportation  related
construction   projects   and  participates  in  this  program  and  any
definition of project contained elsewhere in this act shall not apply.
2. Such loans, or loan guarantees for  loans  made  by  federally  and
state   chartered   credit  institutions,  financial  institutions,  and
federally  insured  banking  organizations   to   small   business   and
minority-owned  and  women-owned  business enterprises, shall be used to
(a)  enable  such  businesses,  through  the  acquisition,  leasing   or
improvement  of  real  property,  machinery or equipment, or through the
provision  of  working  capital  to   secure   service,   commodity   or
construction  contracts;  (b) restore working capital to such businesses
which have successfully  completed  work  under  a  contract  but  whose
liquidity has been adversely affected by problems resulting from delayed
payments;  and  (c)  ensure the completion of the work associated with a
governmental service, commodity or construction  contract  in  order  to
prevent default on such contract.
3.  (a)  To  be  eligible  for  such  loans  or  loan guarantees (i) a
minority-owned or women-owned business enterprise must be certified as a
minority-owned or women-owned business enterprise  pursuant  to  article
15-A of the executive law; and (ii) a small business or a minority-owned
or women-owned business enterprise shall have a contract or sub-contract
to  provide  goods  or  services  related  to  a  government  sponsored,
transportation related construction project.
(b) Only such business enterprises referred to the  corporation  by  a
written  application  of  a  state  agency  or  authority  that sponsors
transportation related  construction  projects  shall  be  eligible  for
program  assistance.  Such  assistance  shall  be  provided  to  such an
enterprise only in connection with its performance as  a  contractor  or
sub-contractor  on  a  specific  transportation  related  project of the
referring agency or authority. In order for such an agency or  authority
to  refer  such enterprises to the corporation, such agency or authority
shall enter into  a  master  agreement  with  the  corporation  covering

procedures  and  requirements  for  providing  program  assistance.  The
corporation shall determine whether or not to approve such  an  agency's
or  authority's  written  application  for  program assistance to such a
business  within  twenty  business  days of the corporation's receipt of
such application. If it approves the application, the  corporation  will
provide assistance pursuant to the applicable master agreement.
4.  The  corporation  shall  give  preference  to  minority-owned  and
women-owned  business  enterprises  in  making  such  loans   and   loan
guarantees  and  shall  establish  such  other  criteria  as it may deem
necessary for this program and for any required  amount  that  shall  be
held in reserve for any guarantees made under this program.
5. Notwithstanding any inconsistent provision of law, general, special
or  local,  including pursuant to capital projects budget appropriations
or  reappropriations,  where  applicable,  the  corporation  is   hereby
authorized  to  enter  into  such agreements as may be necessary for the
operation and administration of a small business and minority-owned  and
women-owned  business  enterprises transportation capital assistance and
guaranteed loan program.
6. The corporation is authorized to establish a  revolving  loan  fund
account  into  which  funds  may be received and from which funds may be
expended for the aforementioned purposes.
7. The provisions of  section  ten  and  subdivision  two  of  section
sixteen  of  this  act shall not apply to assistance provided under this
program.
§ 39.  Lease  and  operation  of  seventh  regiment  armory.  (a)  The
corporation  is  hereby authorized to act on behalf of the state and the
division of military  and  naval  affairs  to  enter  into  a  lease  or
subsequent  leases  and  the management agreement on behalf of the state
and the division  with  a  lessee,  subsequent  lessee  or  the  manager
pursuant to the terms of the management agreement in order to accomplish
the  purposes  of this section. The leasing of the armory to a lessee or
subsequent lessee and the entrance into the management agreement and the
repair, restoration  and  refurbishment  of  the  armory  and  operation
thereof  by  a  lessee or subsequent lessee for cultural and other civic
uses pursuant to the lease is hereby declared to be a  valid  use  under
the city lease, and is undertaken for public purposes.
(b)  The  lease  with a lessee or subsequent lessee authorized by this
section shall require a lessee  or  subsequent  lessee  to  undertake  a
program  of  repair,  restoration and refurbishment of the armory and to
manage and use the same as a facility for cultural and other civic uses.
The lease shall demise all portions  of  the  armory  other  than  those
reserved  for  a  homeless shelter for women operated by the city of New
York pursuant to agreement with the state  and  for  that  reserved  for
military  use  by the division. The portion of the premises allocated to
the shelter for homeless women shall be sufficient  and  suitable  space
for  the  current and uninterrupted operation of the shelter by the city
of New York. The division shall cause the 107th corps support  group  or
its  lineal  descendent  to  maintain  military  use within the reserved
portions of the  armory.  The  division,  and  the  city  of  New  York,
respectively, shall be responsible to repair and maintain their reserved
premises,  including  the costs of renovation and uninterrupted use, and
to pay an annual common maintenance charge to  a  lessee  or  subsequent
lessee  to cover allocated costs of repair, maintenance and operation of
the common portions of the armory. The lessee or subsequent lessee shall
be required to apply all revenues generated by operations at the  armory
to  pay  or  provide  for  costs of repairs, restoration, refurbishment,
operating, maintenance and  programming  of  the  armory  and  the  uses

therein  and  the  activities  of  the  lessee or subsequent lessee with
respect thereto.
(c)  The  corporation,  in  carrying  out its authorization under this
section may exercise all of the power granted it in  law,  as  if  fully
enumerated herein. Without limiting the generality of the foregoing, the
powers  granted to the corporation under sections sixteen and twenty-two
of this act shall be utilized by the corporation in  its  administration
of  the  lease,  and  shall  be  applicable  in  respect  to the repair,
restoration, refurbishment and operation of the armory pursuant  to  the
lease.
(d)  In  no  event  shall  the lessee or subsequent lessee be deemed a
state actor or an agent or an instrumentality of the state by reason  of
the  lease  or  this  section  or any of the activities of the lessee or
subsequent lessee with respect to the armory pursuant to  the  lease  or
this section.
(e)  Except  with  respect  to  military  use  or  periods of civil or
military emergency, for any action involving the armory that may have  a
significant effect on the environment, the corporation shall be the lead
agency  having  principal  responsibility  for carrying out or approving
such  action  for  purposes  of  article  eight  of  the   environmental
conservation law.
§  41. International computer chip research and development center. 1.
Notwithstanding the provisions of any other law  to  the  contrary,  the
urban  development  corporation  is  hereby authorized to issue bonds or
notes in one or more series for the purpose of funding project costs  at
the  College  of  Nanoscale Science and Engineering of the University at
Albany - State  University  of  New  York  for  the  development  and/or
expansion  of  an  international  computer chip research and development
center, including but not limited to the  construction  and  renovation,
purchase  and  installation of equipment or other state costs associated
with the project at the College of Nanoscale Science and Engineering  of
the  University  at Albany - State University of New York. The aggregate
principal amount of bonds authorized  to  be  issued  pursuant  to  this
section  shall not exceed three hundred million dollars, excluding bonds
issued to fund one or more debt service reserve funds, to pay  costs  of
issuance of such bonds, and bonds or notes issued to refund or otherwise
repay such bonds or notes previously issued. Such bonds and notes of the
corporation shall not be a debt of the state, and the state shall not be
liable  thereon,  nor  shall they be payable out of any funds other than
those appropriated by  the  state  to  the  corporation  for  principal,
interest,  and  related expenses pursuant to a service contract and such
bonds and notes shall contain on the face thereof a  statement  to  such
effect. Except for purposes of complying with the internal revenue code,
any  interest  income  earned on bond proceeds shall only be used to pay
debt service on such bonds.
2. Notwithstanding any other provision of  law  to  the  contrary,  in
order  to  assist  the  corporation  in undertaking the financing of the
development and/or expansion of an international computer chip  research
and  development  center,  including but not limited to the construction
and renovation, purchase and installation of equipment, or  other  state
costs  associated with the project, the director of the budget is hereby
authorized to  enter  into  one  or  more  service  contracts  with  the
corporation,  none  of which shall exceed thirty years in duration, upon
such terms and  conditions  as  the  director  of  the  budget  and  the
corporation  agree, so as to annually provide to the corporation, in the
aggregate, a sum not to exceed  the  principal,  interest,  and  related
expenses required for such bonds and notes. Any service contract entered
into  pursuant  to this section shall provide that the obligation of the

state to pay the amount therein provided shall not constitute a debt  of
the  state  within  the  meaning  of  any  constitutional  or  statutory
provision and shall be deemed executory only to  the  extent  of  monies
available  and  that  no liability shall be incurred by the state beyond
the monies available for such purpose, subject to  annual  appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder  may  be  assigned and pledged by the corporation as security
for its bonds and notes, as authorized by this act.
3. The corporation, in  conjunction  with  the  College  of  Nanoscale
Science  and Engineering of the University at Albany-State University of
New York, shall develop a program and financing plan  for  the  project.
Upon  certification  by  the  corporation,  copies of such plan shall be
filed with the director of the budget, the chair of the  senate  finance
committee  and  the  chair  of  the  assembly  ways and means committee.
Further, the corporation shall provide an annual report to the  director
of  the  budget,  chair of the senate finance committee and the chair of
the assembly ways  and  means  committee  detailing  the  use  of  state
assistance  for  the  project and the progress of the project in meeting
the performance criteria set forth on the program  and  financing  plan.
Such report shall be submitted by March thirty-first, two thousand eight
and  March  thirty-first  thereafter  for  a  period not to exceed seven
years.
§ 42. New York state modernization projects.  1.  Notwithstanding  the
provisions of any other law to the contrary, the dormitory authority and
the  corporation are hereby authorized to issue bonds or notes in one or
more series for the purpose of funding project costs for  the  Roosevelt
Island  operating corporation related to the modernization of the aerial
tramway, critical maintenance and  improvement  projects  on  Governor's
Island,   redevelopment   initiatives   at  the  Harriman  research  and
technology park and USA Niagara and other state  costs  associated  with
such  projects. The aggregate principal amount of bonds authorized to be
issued pursuant to this section shall  not  exceed  fifty  million  four
hundred  fifty  thousand  dollars, excluding bonds issued to fund one or
more debt service reserve funds, to pay costs of issuance of such bonds,
and bonds or notes issued to refund or otherwise  repay  such  bonds  or
notes previously issued. Such bonds and notes of the dormitory authority
and  the  corporation  shall  not  be a debt of the state, and the state
shall not be liable thereon, nor shall they be payable out of any  funds
other  than  those  appropriated by the state to the dormitory authority
and the  corporation  for  principal,  interest,  and  related  expenses
pursuant to a service contract and such bonds and notes shall contain on
the  face  thereof  a  statement  to such effect. Except for purposes of
complying with the internal revenue code, any interest income earned  on
bond proceeds shall only be used to pay debt service on such bonds.
2.  Notwithstanding  any  other  provision  of law to the contrary, in
order  to  assist  the  dormitory  authority  and  the  corporation   in
undertaking the financing for the Roosevelt Island operating corporation
related to the modernization of the aerial tramway, critical maintenance
and improvement projects on Governor's Island, redevelopment initiatives
at  the  Harriman research and technology park and USA Niagara and other
state costs associated with such projects, the director of the budget is
hereby authorized to enter into one or more service contracts  with  the
dormitory  authority  and  the  corporation,  none of which shall exceed
thirty years in duration, upon such terms and conditions as the director
of the budget and the dormitory authority and the corporation agree,  so
as  to  annually provide to the dormitory authority and the corporation,
in the aggregate, a sum not  to  exceed  the  principal,  interest,  and
related expenses required for such bonds and notes. Any service contract

entered  into pursuant to this section shall provide that the obligation
of the state to pay the amount therein provided shall not  constitute  a
debt  of the state within the meaning of any constitutional or statutory
provision  and  shall  be  deemed executory only to the extent of monies
available and that no liability shall be incurred by  the  state  beyond
the  monies  available for such purpose, subject to annual appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder may be assigned and pledged by the  dormitory  authority  and
the  corporation  as  security for its bonds and notes, as authorized by
this section.
§  43.  2008   and   2009   Economic   development   initiatives.   1.
Notwithstanding  the  provisions  of  any other law to the contrary, the
dormitory authority and the corporation are hereby authorized  to  issue
bonds  or notes in one or more series for the purpose of funding project
costs for various economic development  and  regional  initiatives,  the
upstate  regional blueprint fund, the downstate revitalization fund, the
upstate  agricultural  economic  fund,  the  New  York   state   capital
assistance  program,  the New York state economic development assistance
program and  other  state  costs  associated  with  such  projects.  The
aggregate  principal amount of bonds authorized to be issued pursuant to
this section shall not exceed one billion two hundred sixty-nine million
four hundred fifty thousand dollars, excluding bonds issued to fund  one
or  more  debt  service  reserve funds, to pay costs of issuance of such
bonds, and bonds or notes issued to refund or otherwise repay such bonds
or notes previously issued.  Such  bonds  and  notes  of  the  dormitory
authority  and the corporation shall not be a debt of the state, and the
state shall not be liable thereon, nor shall they be payable out of  any
funds  other  than  those  appropriated  by  the  state to the dormitory
authority and the  corporation  for  principal,  interest,  and  related
expenses  pursuant  to a service contract and such bonds and notes shall
contain on the face thereof a  statement  to  such  effect.  Except  for
purposes  of  complying  with  the  internal  revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
2. Notwithstanding any other provision of  law  to  the  contrary,  in
order   to  assist  the  dormitory  authority  and  the  corporation  in
undertaking the financing for various economic development and  regional
initiatives,   the   upstate  regional  blueprint  fund,  the  downstate
revitalization fund, the upstate agricultural  economic  fund,  the  New
York  state  capital  assistance  program,  the  New York state economic
development assistance program and other  state  costs  associated  with
such  projects, the director of the budget is hereby authorized to enter
into one or more service contracts with the dormitory authority and  the
corporation,  none  of which shall exceed thirty years in duration, upon
such terms and  conditions  as  the  director  of  the  budget  and  the
dormitory authority and the corporation agree, so as to annually provide
to  the dormitory authority and the corporation, in the aggregate, a sum
not to exceed the principal, interest, and related expenses required for
such bonds and notes. Any service contract entered into pursuant to this
section shall provide that the obligation of the state to pay the amount
therein provided shall not constitute a debt of  the  state  within  the
meaning of any constitutional or statutory provision and shall be deemed
executory  only  to the extent of monies available and that no liability
shall be incurred by the state beyond  the  monies  available  for  such
purpose,  subject  to  annual appropriation by the legislature. Any such
contract or any payments made or to be made thereunder may  be  assigned
and  pledged  by the dormitory authority and the corporation as security
for its bonds and notes, as authorized by this section.
§ 44. Issuance of certain  bonds  or  notes.  1.  Notwithstanding  the
provisions of any other law to the contrary, the dormitory authority and
the  corporation are hereby authorized to issue bonds or notes in one or
more series for the purpose of funding project costs  for  the  regional
economic  development  council  initiative,  the economic transformation
program, state university of New York college for nanoscale and  science
engineering,   projects  within  the  city  of  Buffalo  or  surrounding
environs, the New York works economic development fund, projects for the
retention of professional football in western New York, the empire state
economic development fund, the  clarkson-trudeau  partnership,  the  New
York  genome  center,  the  cornell  university  college  of  veterinary
medicine, the olympic regional development authority, projects  at  nano
Utica,  onondaga  county  revitalization projects, Binghamton university
school of pharmacy, New York power electronics manufacturing consortium,
regional infrastructure projects,  high  tech  innovation  and  economic
development   infrastructure   program,  high  technology  manufacturing
projects in Chautauqua and Erie county, an industrial scale research and
development  facility  in   Clinton   county,   upstate   revitalization
initiative  projects,  downstate  revitalization  initiative, market New
York projects, fairground buildings, equipment  or  facilities  used  to
house  and  promote agriculture, the state fair, the empire state trail,
the  moynihan  station  development  project,  the  Kingsbridge   armory
project, strategic economic development projects, the cultural, arts and
public  spaces fund, water infrastructure in the city of Auburn and town
of  Owasco,  a  life  sciences  laboratory  public  health   initiative,
not-for-profit  pounds, shelters and humane societies, arts and cultural
facilities  improvement  program,   restore   New   York's   communities
initiative,  heavy  equipment,  economic  development and infrastructure
projects, Roosevelt Island operating corporation capital projects,  Lake
Ontario  regional  projects,  Pennsylvania  station  and  other  transit
projects, athletic facilities for professional football in Orchard Park,
New York, Rush - NY, New York AI Consortium, New York Creates UEV  Tool,
and  other  state  costs  associated  with  such projects. The aggregate
principal amount of bonds authorized  to  be  issued  pursuant  to  this
section  shall  not  exceed  twenty  billion eight hundred seventy-eight
million  one  hundred  ninety-four  thousand  dollars   $20,878,194,000,
excluding  bonds  issued to fund one or more debt service reserve funds,
to pay costs of issuance of such bonds, and bonds  or  notes  issued  to
refund  or  otherwise  repay such bonds or notes previously issued. Such
bonds and notes of the dormitory authority and the corporation shall not
be a debt of the state, and the state shall not be liable  thereon,  nor
shall  they be payable out of any funds other than those appropriated by
the state to the dormitory authority and the corporation for  principal,
interest,  and  related expenses pursuant to a service contract and such
bonds and notes shall contain on the face thereof a  statement  to  such
effect. Except for purposes of complying with the internal revenue code,
any  interest  income  earned on bond proceeds shall only be used to pay
debt service on such bonds.
2. Notwithstanding any other provision of  law  to  the  contrary,  in
order   to  assist  the  dormitory  authority  and  the  corporation  in
undertaking the financing for project costs for  the  regional  economic
development  council  initiative,  the  economic transformation program,
state  university  of  New  York  college  for  nanoscale  and   science
engineering,   projects  within  the  city  of  Buffalo  or  surrounding
environs, the New York works economic development fund, projects for the
retention of professional football in western New York, the empire state
economic development fund, the  clarkson-trudeau  partnership,  the  New
York  genome  center,  the  cornell  university  college  of  veterinary

medicine, the olympic regional development authority, projects  at  nano
Utica,  onondaga  county  revitalization projects, Binghamton university
school of pharmacy, New York power electronics manufacturing consortium,
regional  infrastructure  projects,  New  York  State Capital Assistance
Program for Transportation, infrastructure,  and  economic  development,
high  tech  innovation  and economic development infrastructure program,
high technology manufacturing projects in Chautauqua and Erie county, an
industrial scale research and development facility  in  Clinton  county,
upstate  revitalization  initiative  projects,  downstate revitalization
initiative, market New York projects, fairground buildings, equipment or
facilities used to house and promote agriculture, the  state  fair,  the
empire  state  trail,  the  moynihan  station  development  project, the
Kingsbridge armory project, strategic economic development projects, the
cultural, arts and public spaces fund, water infrastructure in the  city
of  Auburn  and town of Owasco, a life sciences laboratory public health
initiative, not-for-profit pounds, shelters and humane  societies,  arts
and   cultural   facilities  improvement  program,  restore  New  York's
communities  initiative,  heavy  equipment,  economic  development   and
infrastructure  projects, Roosevelt Island operating corporation capital
projects, Lake Ontario regional projects, Pennsylvania station and other
transit projects,  athletic  facilities  for  professional  football  in
Orchard  Park,  New  York,  Rush  - NY, New York AI Consortium, New York
Creates UEV Tool, and other state costs associated  with  such  projects
the  director  of  the  budget is hereby authorized to enter into one or
more service contracts with the dormitory authority and the corporation,
none of which shall exceed thirty years in duration, upon such terms and
conditions as the director of the budget and the dormitory authority and
the corporation agree, so  as  to  annually  provide  to  the  dormitory
authority and the corporation, in the aggregate, a sum not to exceed the
principal,  interest,  and  related expenses required for such bonds and
notes. Any service contract entered into pursuant to this section  shall
provide  that  the  obligation  of  the  state to pay the amount therein
provided shall not constitute a debt of the state within the meaning  of
any  constitutional or statutory provision and shall be deemed executory
only to the extent of monies available and that no  liability  shall  be
incurred  by  the  state  beyond  the monies available for such purpose,
subject to annual appropriation by the legislature. Any such contract or
any payments made or to be made thereunder may be assigned  and  pledged
by the dormitory authority and the corporation as security for its bonds
and notes, as authorized by this section.
§ 45. NY-SUNY 2020. 1. Notwithstanding the provisions of any other law
to  the  contrary, the urban development corporation of the state of New
York is hereby authorized to issue bonds or notes in one or more  series
for  the  purpose  of  funding project costs for the implementation of a
NY-SUNY and NY-CUNY 2020 challenge grant program subject to the approval
of a NY-SUNY and NY-CUNY 2020 plan or plans by the governor  and  either
the  chancellor of the state university of New York or the chancellor of
the city university of New York, as applicable. The aggregate  principal
amount  of  bonds authorized to be issued pursuant to this section shall
not exceed $660,000,000, excluding bonds issued to fund one or more debt
service reserve funds, to pay costs of issuance of such bonds, and bonds
or notes issued to  refund  or  otherwise  repay  such  bonds  or  notes
previously  issued. Such bonds and notes of the corporation shall not be
a debt of the state, and the state shall  not  be  liable  thereon,  nor
shall  they be payable out of any funds other than those appropriated by
the state to  the  corporation  for  principal,  interest,  and  related
expenses  pursuant  to a service contract and such bonds and notes shall
contain on the face thereof a  statement  to  such  effect.  Except  for

purposes  of  complying  with  the  internal  revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
2. Notwithstanding any other law, rule, or regulation to the contrary,
the  comptroller  is  hereby  authorized  and directed to deposit to the
credit of the capital projects fund, reimbursement from the proceeds  of
notes  or bonds issued by the urban development corporation of the state
of New York for  capital  disbursements  associated  with  such  project
costs.
3.  Notwithstanding  any  other  provision  of law to the contrary, in
order to assist the urban development  corporation  in  undertaking  the
financing  for  project  costs  for  the  NY-SUNY  2020  challenge grant
program, the director of the budget is hereby authorized to  enter  into
one  or more service contracts with the corporation, none of which shall
exceed thirty years in duration, upon such terms and conditions  as  the
director  of  the  budget  and  the corporation agree, so as to annually
provide to the corporation, in the aggregate, a sum not  to  exceed  the
principal,  interest,  and  related expenses required for such bonds and
notes. Any service contract entered into pursuant to this section  shall
provide  that  the  obligation  of  the  state to pay the amount therein
provided shall not constitute a debt of the state within the meaning  of
any  constitutional or statutory provision and shall be deemed executory
only to the extent of monies available and that no  liability  shall  be
incurred  by  the  state  beyond  the monies available for such purpose,
subject to annual appropriation by the legislature. Any such contract or
any payments made or to be made thereunder may be assigned  and  pledged
to the corporation as security for its bonds and notes, as authorized by
this section.
§  46.  1.  Notwithstanding  the  provisions  of  any other law to the
contrary,  the  dormitory  authority  and  the  corporation  are  hereby
authorized to issue bonds or notes in one or more series for the purpose
of  funding  project  costs  for restoring state properties damaged as a
result of Storm Sandy and other state costs associated with such capital
projects. The aggregate principal  amount  of  bonds  authorized  to  be
issued  pursuant  to  this  section  shall not exceed four hundred fifty
million dollars, excluding bonds issued to fund one or more debt service
reserve funds, to pay costs of issuance of  such  bonds,  and  bonds  or
notes issued to refund or otherwise repay such bonds or notes previously
issued.  Such  bonds  and  notes  of  the  dormitory  authority  and the
corporation shall not be a debt of the state, and the state shall not be
liable thereon, nor shall they be payable out of any  funds  other  than
those  appropriated  by  the  state  to  the dormitory authority and the
corporation for principal, interest, and related expenses pursuant to  a
service  contract  and  such  bonds  and notes shall contain on the face
thereof a statement to such effect. Except  for  purposes  of  complying
with  the  internal  revenue  code,  any  interest income earned on bond
proceeds shall only be used to pay debt service on such bonds.
2. Notwithstanding any other provision of  law  to  the  contrary,  in
order   to  assist  the  dormitory  authority  and  the  corporation  in
undertaking  the  financing  for  project  costs  for  restoring   state
properties  damaged  as  a  result  of Storm Sandy and other state costs
associated with such capital projects, the director  of  the  budget  is
hereby  authorized  to enter into one or more service contracts with the
dormitory authority and the corporation,  none  of  which  shall  exceed
thirty years in duration, upon such terms and conditions as the director
of  the budget and the dormitory authority and the corporation agree, so
as to annually provide to the dormitory authority and  the  corporation,
in  the  aggregate,  a  sum  not  to exceed the principal, interest, and

related expenses required for such bonds and notes. Any service contract
entered into pursuant to this section shall provide that the  obligation
of  the  state to pay the amount therein provided shall not constitute a
debt  of the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to  the  extent  of  monies
available  and  that  no liability shall be incurred by the state beyond
the monies available for such purpose, subject to  annual  appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder  may  be  assigned and pledged by the dormitory authority and
the corporation as security for its bonds and notes,  as  authorized  by
this section.
3.  The comptroller is hereby authorized to receive from the dormitory
authority and the corporation any  portion  of  bond  proceeds  paid  to
provide  funds  for or reimburse the state for its costs associated with
such capital project costs and to credit such  amounts  to  the  capital
projects fund or any other appropriate fund.
§  47.  1.  Notwithstanding  the  provisions  of  any other law to the
contrary,  the  dormitory  authority  and  the  corporation  are  hereby
authorized to issue bonds or notes in one or more series for the purpose
of  funding  project  costs  for  the  office  of information technology
services, department of law, and other state costs associated with  such
capital  projects. The aggregate principal amount of bonds authorized to
be issued pursuant to this section shall not exceed  one  billion  seven
hundred   forty-two   million  seven  hundred  twelve  thousand  dollars
$1,742,712,000, excluding bonds issued to fund one or more debt  service
reserve  funds,  to  pay  costs  of issuance of such bonds, and bonds or
notes issued to refund or otherwise repay such bonds or notes previously
issued. Such  bonds  and  notes  of  the  dormitory  authority  and  the
corporation shall not be a debt of the state, and the state shall not be
liable  thereon,  nor  shall they be payable out of any funds other than
those appropriated by the state  to  the  dormitory  authority  and  the
corporation  for principal, interest, and related expenses pursuant to a
service contract and such bonds and notes  shall  contain  on  the  face
thereof  a  statement  to such effect.  Except for purposes of complying
with the internal revenue code,  any  interest  income  earned  on  bond
proceeds shall only be used to pay debt service on such bonds.
2.  Notwithstanding  any  other  provision  of law to the contrary, in
order  to  assist  the  dormitory  authority  and  the  corporation   in
undertaking   the   financing  for  project  costs  for  the  office  of
information technology services, department  of  law,  and  other  state
costs  associated with such capital projects, the director of the budget
is hereby authorized to enter into one or more  service  contracts  with
the  dormitory authority and the corporation, none of which shall exceed
thirty years in duration, upon such terms and conditions as the director
of the budget and the dormitory authority and the corporation agree,  so
as  to  annually provide to the dormitory authority and the corporation,
in the aggregate, a sum not  to  exceed  the  principal,  interest,  and
related expenses required for such bonds and notes. Any service contract
entered  into pursuant to this section shall provide that the obligation
of the state to pay the amount therein provided shall not  constitute  a
debt  of the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to  the  extent  of  monies
available  and  that  no liability shall be incurred by the state beyond
the monies available for such purpose, subject to  annual  appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder  may  be  assigned and pledged by the dormitory authority and
the corporation as security for its bonds and notes,  as  authorized  by
this section.
3.  The comptroller is hereby authorized to receive from the dormitory
authority and the corporation any  portion  of  bond  proceeds  paid  to
provide  funds  for or reimburse the state for its costs associated with
such capital project costs and to credit such  amounts  to  the  capital
projects fund or any other appropriate fund.
§  48.  Authorization  for  transportation  infrastructure finance and
innovation act loans. 1. (a) Notwithstanding the provisions of any other
law to the contrary, each of the authorized issuers,  as  such  term  is
defined  in  paragraphs  (a) and (b) of subdivision 1 of section 68-a of
the state finance law, are hereby authorized  to  accept  transportation
infrastructure  finance and innovation act (TIFIA) loans from the United
States of America, subject to any applicable agreement with  bondholders
or  noteholders,  to  enter  into  contracts,  secured  loan agreements,
service  agreements  or  repayment  agreements  and   to   execute   all
instruments  necessary, convenient or desirable in connection therewith,
including, its bonds, notes or other  obligations  evidencing  any  such
loan  from  the  United  States  of America, and to pledge and assign as
security for any such grants or loans, bonds or  notes  issued  by  such
authorized   issuer  or  payments  due  to  such  authorized  issuer  in
connection  therewith  or  revenues  of  such  authorized   issuer,   as
applicable.  The  aggregate  principal  amount of bonds authorized to be
issued by the authorized issuers pursuant  to  this  section  shall  not
exceed  seven  hundred  fifty million dollars, excluding bonds issued to
fund one or more debt service reserve funds, to pay costs of issuance of
such bonds, and bonds, notes, or other obligations issued to  refund  or
otherwise  repay  such  bonds,  notes,  or  other obligations previously
issued. If such bonds, notes, or other  obligations  are  secured  by  a
service contract with the state of New York, such bonds, notes, or other
obligations  of the authorized issuers shall not be a debt of the state,
and the state shall not be liable thereon, nor shall they be payable out
of any  funds  other  than  those  appropriated  by  the  state  to  the
authorized   issuers  for  principal,  interest,  and  related  expenses
pursuant to  a  service  contract  and  such  bonds,  notes,  and  other
obligations  shall  contain  on  the  face  thereof  a statement to such
effect. Except for purposes of complying with the internal revenue code,
any interest income earned on bond proceeds shall only be  used  to  pay
debt service on such bonds.
(b)  Any  bonds,  notes,  or other obligations issued pursuant to this
section shall (i) be in  furtherance  of  capital  projects  and  public
purposes  consistent  with  the  objectives  of the TIFIA loans from the
United States of America, and (ii) any such financings shall  provide  a
demonstrable benefit to the state of New York and the authorized issuers
through  a  lower cost of financing than could otherwise be achieved, as
evidenced by a report from an independent financial advisor.
2. Notwithstanding the provisions of any other law to the contrary, in
order to assist the authorized issuers in undertaking  the  TIFIA  loans
from the United States of America, the state of New York, acting through
the  director  of  the budget, is hereby authorized to enter into one or
more service contracts with the authorized issuers upon such  terms  and
conditions  as  the  director  of  the budget and the authorized issuers
agree, so as to annually provide  to  the  authorized  issuers,  in  the
aggregate,  a  sum  not  to  exceed the principal, interest, and related
expenses required for such bonds,  notes,  and  other  obligations.  Any
service  contract  entered  into  pursuant to this section shall provide
that the obligation of the state to  pay  the  amount  therein  provided
shall  not  constitute  a  debt  of  the state within the meaning of any
constitutional or statutory provision and shall be deemed executory only
to the extent of  monies  available  and  that  no  liability  shall  be

incurred  by  the  state  beyond  the monies available for such purpose,
subject to annual appropriation by the legislature. Any such contract or
any payments made or to be made thereunder may be assigned  and  pledged
by  the authorized issuers as security for their bonds, notes, and other
obligations as authorized by this section.
3. The state comptroller is hereby  authorized  to  receive  from  the
authorized  issuers  TIFIA  loan  proceeds  from  the  United  States of
America, to reimburse  the  state  for  costs  associated  with  capital
projects  related  thereto  and  to  credit  such amounts to the capital
projects fund or any other appropriate fund.
4. Prior to submitting a letter  of  interest  to  the  United  States
department  of  transportation  for  a  TIFIA  loan, the director of the
budget shall submit a report from an independent  financial  advisor  to
the  speaker of the assembly, the temporary president of the senate, the
chair of the senate finance committee and the chair of the assembly ways
and means committee evidencing a demonstrable benefit to  the  state  of
New  York  through  a  lower  cost  of financing than could otherwise be
achieved.
§ 49. 1. Notwithstanding the  provisions  of  any  other  law  to  the
contrary,  the  dormitory  authority  and  the  corporation  are  hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for the state and municipal facilities  program
and  other  state  costs  associated  with  such  capital  projects. The
aggregate principal amount of bonds authorized to be issued pursuant  to
this  section  shall  not  exceed three billion one hundred eighty-three
million five hundred thousand dollars  $3,183,500,000,  excluding  bonds
issued  to  fund one or more debt service reserve funds, to pay costs of
issuance of such bonds, and bonds or notes issued to refund or otherwise
repay such bonds or notes previously issued. Such bonds and notes of the
dormitory authority and the corporation shall  not  be  a  debt  of  the
state,  and  the  state  shall  not be liable thereon, nor shall they be
payable out of any funds other than those appropriated by the  state  to
the dormitory authority and the corporation for principal, interest, and
related expenses pursuant to a service contract and such bonds and notes
shall contain on the face thereof a statement to such effect. Except for
purposes  of  complying  with  the  internal  revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
2. Notwithstanding any other provision of  law  to  the  contrary,  in
order   to  assist  the  dormitory  authority  and  the  corporation  in
undertaking the financing for project costs for the state and  municipal
facilities  program  and  other state costs associated with such capital
projects, the director of the budget is hereby authorized to enter  into
one  or  more  service  contracts  with  the dormitory authority and the
corporation, none of which shall exceed thirty years in  duration,  upon
such  terms  and  conditions  as  the  director  of  the  budget and the
dormitory authority and the corporation agree, so as to annually provide
to the dormitory authority and the corporation, in the aggregate, a  sum
not to exceed the principal, interest, and related expenses required for
such bonds and notes. Any service contract entered into pursuant to this
section shall provide that the obligation of the state to pay the amount
therein  provided  shall  not  constitute a debt of the state within the
meaning of any constitutional or statutory provision and shall be deemed
executory only to the extent of monies available and that  no  liability
shall  be  incurred  by  the  state beyond the monies available for such
purpose, subject to annual appropriation by the  legislature.  Any  such
contract  or  any payments made or to be made thereunder may be assigned

and pledged by the dormitory authority and the corporation  as  security
for its bonds and notes, as authorized by this section.
3.  The comptroller is hereby authorized to receive from the dormitory
authority and the corporation any  portion  of  bond  proceeds  paid  to
provide  funds  for or reimburse the state for its costs associated with
such capital project costs and to credit such  amounts  to  the  capital
projects fund or any other appropriate fund.
§  50.  1.  Notwithstanding  the  provisions  of  any other law to the
contrary, the dormitory authority and the urban development  corporation
are  hereby authorized to issue bonds or notes in one or more series for
the purpose of funding project costs undertaken by or on behalf  of  the
state    education    department,    special   act   school   districts,
state-supported schools for the blind and deaf, approved private special
education schools,  non-public  schools,  community  centers,  day  care
facilities,  residential camps, day camps, Native American Indian Nation
schools, and other state costs associated with  such  capital  projects.
The aggregate principal amount of bonds authorized to be issued pursuant
to  this section shall not exceed three hundred ninety-six million eight
hundred ninety-eight  thousand  dollars  $396,898,000,  excluding  bonds
issued  to  fund one or more debt service reserve funds, to pay costs of
issuance of such bonds, and bonds or notes issued to refund or otherwise
repay such bonds or notes previously issued. Such bonds and notes of the
dormitory authority and the urban development corporation shall not be a
debt of the state, and the state shall not be liable thereon, nor  shall
they  be  payable  out of any funds other than those appropriated by the
state to the dormitory authority and the urban  development  corporation
for  principal,  interest,  and  related  expenses pursuant to a service
contract and such bonds and notes shall contain on the  face  thereof  a
statement  to  such  effect.  Except  for purposes of complying with the
internal revenue code, any interest income earned on bond proceeds shall
only be used to pay debt service on such bonds.
2. Notwithstanding any other provision of  law  to  the  contrary,  in
order  to  assist  the  dormitory  authority  and  the urban development
corporation in undertaking the financing for project costs undertaken by
or on behalf of special act school  districts,  state-supported  schools
for  the  blind and deaf and approved private special education schools,
non-public schools, community centers, day care  facilities,  and  other
state  costs  associated with such capital projects, the director of the
budget is hereby authorized to enter into one or more service  contracts
with the dormitory authority and the urban development corporation, none
of  which  shall  exceed  thirty  years in duration, upon such terms and
conditions as the director of the budget and the dormitory authority and
the urban development corporation agree, so as to  annually  provide  to
the  dormitory  authority  and the urban development corporation, in the
aggregate, a sum not to exceed  the  principal,  interest,  and  related
expenses required for such bonds and notes. Any service contract entered
into  pursuant  to this section shall provide that the obligation of the
state to pay the amount therein provided shall not constitute a debt  of
the  state  within  the  meaning  of  any  constitutional  or  statutory
provision and shall be deemed executory only to  the  extent  of  monies
available  and  that  no liability shall be incurred by the state beyond
the monies available for such purpose, subject to  annual  appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder  may  be  assigned and pledged by the dormitory authority and
the urban development corporation as security for its bonds  and  notes,
as authorized by this section.
§  51.  1.  Notwithstanding  the  provisions  of  any other law to the
contrary, the dormitory authority and the urban development  corporation

are  hereby authorized to issue bonds or notes in one or more series for
the purpose of funding project costs for  the  nonprofit  infrastructure
capital  investment  program  and other state costs associated with such
capital  projects. The aggregate principal amount of bonds authorized to
be issued pursuant to this section shall not exceed one hundred  seventy
million dollars $170,000,000, excluding bonds issued to fund one or more
debt  service reserve funds, to pay costs of issuance of such bonds, and
bonds or notes issued to refund or otherwise repay such bonds  or  notes
previously  issued.  Such bonds and notes of the dormitory authority and
the urban development corporation shall not be a debt of the state,  and
the  state shall not be liable thereon, nor shall they be payable out of
any funds other than those appropriated by the state  to  the  dormitory
authority and the urban development corporation for principal, interest,
and  related  expenses pursuant to a service contract and such bonds and
notes shall contain on the face thereof  a  statement  to  such  effect.
Except  for  purposes  of  complying with the internal revenue code, any
interest income earned on bond proceeds shall only be used to  pay  debt
service on such bonds.
2.  Notwithstanding  any  other  provision  of law to the contrary, in
order to assist  the  dormitory  authority  and  the  urban  development
corporation  in  undertaking  the  financing  for  project costs for the
nonprofit infrastructure capital  investment  program  and  other  state
costs  associated with such capital projects, the director of the budget
is hereby authorized to enter into one or more  service  contracts  with
the  dormitory  authority and the urban development corporation, none of
which shall exceed  thirty  years  in  duration,  upon  such  terms  and
conditions as the director of the budget and the dormitory authority and
the  urban  development  corporation agree, so as to annually provide to
the dormitory authority and the urban development  corporation,  in  the
aggregate,  a  sum  not  to  exceed the principal, interest, and related
expenses required for such bonds and notes. Any service contract entered
into pursuant to this section shall provide that the obligation  of  the
state  to pay the amount therein provided shall not constitute a debt of
the  state  within  the  meaning  of  any  constitutional  or  statutory
provision  and  shall  be  deemed executory only to the extent of monies
available and that no liability shall be incurred by  the  state  beyond
the  monies  available for such purpose, subject to annual appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder may be assigned and pledged by the  dormitory  authority  and
the  urban  development corporation as security for its bonds and notes,
as authorized by this section.
§  52.  Small  business  innovation  research  (SBIR)/small   business
technology  transfer  (STTR)  technical assistance program. 1. The small
business  innovation   research/small   business   technology   transfer
technical assistance program, hereafter referred to as "the program", is
hereby created in the corporation for the purposes of providing funds to
eligible entities to provide technical assistance to small businesses of
one hundred employees or less and located in New York state in competing
successfully  for  grants  made  available through phase I and II of the
federal small business innovation research program as  enacted  pursuant
to  the small business innovation development act of 1982, and the small
business technology transfer act of 1982, so as to increase  the  number
of phase I and II SBIR and STTR award winners within the state.
2.  Technical  assistance services under this section may include, but
are not limited to:
(a) outreach to small businesses to  promote  awareness  of  SBIR/STTR
program solicitations;
(b)  counseling  to  determine  the  ability  of  a business to pursue
SBIR/STTR phase I and II funding, the technology match with the  federal
agency  solicitation  to  be  pursued,  the  qualifications of personnel
involved in the proposed project, and the level of support  needed  from
the  technical  assistance program to produce a competitive application;
and
(c)  proposal  preparation   assistance   including   grant   writing,
technology evaluation, and general proposal evaluation.
3.  In  determining whether to provide technical assistance authorized
pursuant to this section to a small business,  eligible  entities  shall
consider   the   probability   of   such  business  commercializing  any
innovations resulting from research funded by an SBIR or STTR  award  in
New York state.
4.  (a) Entities that are eligible to receive funds under this section
shall have demonstrable experience and success  in  providing  technical
assistance authorized pursuant to this section, and as determined by the
corporation, and shall include:
(i)  centers  for  advanced technology established pursuant to section
thirty-one hundred two-b of the public authorities law;
(ii)  technology  development  corporations  established  pursuant  to
section thirty-one hundred two-d of the public authorities law;
(iii) any university, college or community college located in New York
state;
(iv) centers of excellence established pursuant to section 3 of part T
of  chapter  84  of the laws of 2002 and section four hundred ten of the
economic development law; and
(v) any other entities that are located and based in  New  York  state
and demonstrate continuity of staffing, program, and purpose adequate to
provide  technical  assistance  to  small  businesses  pursuant  to this
section.
(b) Preference for receiving funds under this section shall  be  given
to  entities  that  partner  with other eligible entities to provide the
full range of technical assistance services as specified in  subdivision
two of this section.
(c) Entities receiving funds under this section shall match such funds
on  a  one-to-one  basis.  Such  match  shall  consist  of  actual cash,
salaries, staff time, or expenses directly attributable to the  purposes
of this section. Overhead costs may not be included in the match.
5.  (a)  Funds can be used for costs related to conducting outreach to
small   businesses   to   promote   awareness   of   SBIR/STTR   program
solicitations,  grant  preparation  and  review,  and printing costs and
supplies associated with the submission of grants.
(b) From such funds as may be appropriated for  this  purpose  by  the
legislature, the corporation shall make competitive awards in amounts of
up  to  two hundred thousand dollars to providers of assistance pursuant
to this section.
6.  (a)  Entities  receiving  funds  shall  annually  provide  to  the
corporation details on the following:
(i)  description  of  small  businesses  served,  including technology
focus, business size and location;
(ii) SBIR and STTR grants applied for and  received  as  a  result  of
assistance provided; and
(iii) any other information deemed appropriate by the corporation.
(b) The corporation shall include the information provided pursuant to
subdivision  five of this section in the annual report filed pursuant to
section four hundred four of the economic development law.
(c) On or before June first, two thousand  nineteen,  the  corporation
shall  evaluate  the effectiveness of the SBIR/STTR technical assistance
program and report such findings to the governor and legislature.
§   52-a.  Small  business  innovation  research  and  small  business
technology transfer matching grant program. 1. The corporation,  subject
to  available  appropriations and in consultation with the department of
economic development's division for small business,  shall  establish  a
matching  grant  program  to  provide funds to small businesses who have
been awarded phase one or phase  two  grants  under  the  federal  small
business  innovation  research  program or the small business technology
transfer program. Such grants shall be  awarded  based  on  a  company's
potential for commercialization and job growth. As used in this section,
"small  business" shall have the same meaning as provided for in section
one hundred thirty-one of the economic development law.
2. The funding amounts for such grant program shall be as follows:
(a) For small businesses that have  been  awarded  phase  one  funding
under  the  federal  small  business  innovation research program or the
small business technology transfer program, the amount shall  be  up  to
one hundred thousand dollars.
(b)  For  small  businesses  that  have been awarded phase two funding
under the federal small business  innovation  research  program  or  the
small  business  technology  transfer program, the amount shall be up to
two hundred thousand dollars.
(c) For small businesses that have been  awarded  phase  three  status
under  the  federal  small  business  innovation research program or the
small business technology transfer program,  such  businesses  shall  be
provided  access  to  technical  assistance and outreach support through
relevant programs  of  the  corporation  or  the  division  of  economic
development  best suited to foster such businesses continued success and
growth,  including  but  not  limited  to  the  manufacturing  extension
program,  centers for advanced technology program, centers of excellence
program, the state small business credit initiative  program,  certified
innovation  hot  spots  program,  certified  business incubator program,
entrepreneurial   assistance   centers,   business   competitions    and
accelerators  supported  by  the  corporation  or department of economic
development,  and  venture  capital  investments  administered  by   the
corporation or department of economic development.
3.  Small businesses applying to the federal small business innovation
research program or the small business technology transfer  program  may
apply to the corporation for a commitment letter that may be included in
their  application  to  the federal programs named herein to demonstrate
contingent state support and  therefore  increase  their  likelihood  of
receiving  federal small business innovation research and small business
technology transfer  matching  grant  program  funding.  State  matching
grants  shall only be provided to small businesses that are selected for
an award through the federal small business innovation research  program
or the small business technology transfer program.
4.  Such  funds  awarded  pursuant  to  this  section shall be used to
expedite commercialization and generally  used  to  cover  expenses  not
allowed  under the federal small business innovation research program or
the small  business  technology  transfer  program,  including  but  not
limited  to  business planning, commercialization, patents and marketing
studies in sales efforts.  Additionally,  the  corporation  shall  offer
grantees  assistance  with  accessing existing resources offered through
the corporation or the department of  economic  development  that  cover
areas   such  as  business  planning  inclusive  of  business  financial
planning,  commercialization,   intellectual   property   and   patents,
mentoring,  international  trade  and  export development, and marketing

studies in sales efforts support to ensure the  most  efficient  use  of
funds awarded through this program.
5.  Such  funds  shall be awarded on condition that the small business
recipient remains headquartered and  operates  or  manufactures  in  the
state  for at least two years following the successful commercialization
of the business's product or  products.  Any  small  business  that  has
received  funding  under  this  program  that  is  not headquartered and
operates or manufactures in the state for at least two  years  following
the  successful  commercialization of the business's product or products
shall return all grant awards to the state. If the small business ceases
operations before five years after the commercialization of its  product
or  products,  such  business  shall  be  eligible  for a waiver of this
clawback provision, as determined by the  corporation,  in  consultation
with  the  department  of  economic  development's  division  for  small
business.
6. The corporation, in consultation with the  department  of  economic
development's  division for small business, shall establish the form and
manner in which applications for grant awards  shall  be  submitted  and
shall establish rules, regulations, or guidelines for the grant program.
The   corporation   shall   endeavor  to  advance  applicants  that  can
demonstrate the degree to which their small business or product advances
a green and sustainable economy, or supports traditionally disadvantaged
populations.
The corporation shall review each application for compliance with  the
eligibility  criteria  and other requirements set forth in the program's
rules, regulations, or guidelines established by the  commissioner.  The
corporation  may  approve  or  reject  each application or may return an
application for modifications, if necessary.
7. The corporation, beginning on June first, two thousand twenty-four,
and annually thereafter, provided program funds remain, shall  submit  a
report  to  the governor, the temporary president of the senate, and the
speaker of the assembly. Such annual report shall include, but need  not
be  limited  to:  the  number  of  applicants  by  stage;  the number of
applicants approved to  receive  grants;  the  total  amount  of  grants
awarded  and  the  average amount of such grants awarded; and such other
information as the corporation  determines  necessary  and  appropriate.
Such report shall be included on the corporation's website and any other
publicly  accessible  state  databases  that  list  economic development
programs, as determined by the corporation.
§ 53. 1. Notwithstanding the  provisions  of  any  other  law  to  the
contrary,  the dormitory authority and the urban development corporation
are hereby authorized to issue bonds or notes in one or more series  for
the  purpose  of funding project costs for the acquisition of equipment,
including  but  not  limited  to  the  creation  or   modernization   of
information  technology  systems  and  related  research and development
equipment, health and safety equipment, heavy equipment  and  machinery,
the   creation  or  improvement  of  security  systems,  and  laboratory
equipment and other state costs associated with such  capital  projects.
The aggregate principal amount of bonds authorized to be issued pursuant
to  this  section  shall  not  exceed  five hundred ninety-three million
dollars $593,000,000, excluding bonds issued to fund one  or  more  debt
service reserve funds, to pay costs of issuance of such bonds, and bonds
or  notes  issued  to  refund  or  otherwise  repay  such bonds or notes
previously issued. Such bonds and notes of the dormitory  authority  and
the  urban development corporation shall not be a debt of the state, and
the state shall not be liable thereon, nor shall they be payable out  of
any  funds  other  than those appropriated by the state to the dormitory
authority and the urban development corporation for principal, interest,

and related expenses pursuant to a service contract and such  bonds  and
notes  shall  contain  on  the  face thereof a statement to such effect.
Except for purposes of complying with the  internal  revenue  code,  any
interest  income  earned on bond proceeds shall only be used to pay debt
service on such bonds.
2. Notwithstanding any other provision of  law  to  the  contrary,  in
order  to  assist  the  dormitory  authority  and  the urban development
corporation in undertaking the  financing  for  project  costs  for  the
acquisition  of  equipment, including but not limited to the creation or
modernization of information technology systems and related research and
development equipment, health and safety equipment, heavy equipment  and
machinery,   the  creation  or  improvement  of  security  systems,  and
laboratory equipment and other state costs associated with such  capital
projects,  the director of the budget is hereby authorized to enter into
one or more service contracts with the dormitory authority and the urban
development corporation, none of which  shall  exceed  thirty  years  in
duration,  upon  such terms and conditions as the director of the budget
and the dormitory authority and the urban development corporation agree,
so as to annually provide to  the  dormitory  authority  and  the  urban
development  corporation,  in  the  aggregate,  a  sum not to exceed the
principal, interest, and related expenses required for  such  bonds  and
notes.  Any service contract entered into pursuant to this section shall
provide that the obligation of the  state  to  pay  the  amount  therein
provided  shall not constitute a debt of the state within the meaning of
any constitutional or statutory provision and shall be deemed  executory
only  to  the  extent of monies available and that no liability shall be
incurred by the state beyond the  monies  available  for  such  purpose,
subject to annual appropriation by the legislature. Any such contract or
any  payments  made or to be made thereunder may be assigned and pledged
by the dormitory authority and  the  urban  development  corporation  as
security for its bonds and notes, as authorized by this section.
§  54.  1. Findings and declaration of need. (a) The state of New York
finds and determines that the global spread of the COVID-19  coronavirus
disease  is  having  and  is  expected to continue to have a significant
impact on the health and welfare of individuals in the state as well  as
a significant financial impact on the state. The serious threat posed by
the  COVID-19  coronavirus disease has caused governments, including the
state, to adopt policies, regulations and procedures to suspend  various
legal requirements in order to (i) respond to and mitigate the impact of
the   outbreak,  and  (ii)  provide  temporary  relief  to  individuals,
including the deferral of the federal income tax payment  deadline  from
April  15,  2020  to a later date in the calendar year. The state of New
York  further  finds  and  determines  that  certain  fiscal  management
authorization measures should be authorized and established.
(b)  Notwithstanding  any  other  provision  of  law  to the contrary,
including, specifically, the provisions of chapter 59  of  the  laws  of
2000  and  section sixty-seven-b of the state finance law, the dormitory
authority of the state of  New  York  and  the  corporation  are  hereby
authorized  to  issue  until December 31, 2020, notes with a maturity no
later than March 31, 2021, to  be  designated  as  personal  income  tax
revenue  or  bond  anticipation  notes,  in  one  or  more  series in an
aggregate  principal  amount  not  to  exceed  eight  billion   dollars,
excluding  notes  issued  to  finance  one  or more debt service reserve
funds, to pay costs of issuance of  such  notes,  and  notes  issued  to
renew,  refund  or otherwise repay such notes previously issued, for the
purpose of temporarily financing budgetary needs of the state  following
the  federal  government  deferral  of  the  federal  income tax payment
deadline from April 15, 2020 to a later date in the calendar year.  Such

purpose  shall constitute an authorized purpose under subdivision two of
section sixty-eight-a of the state  finance  law  for  all  purposes  of
article  five-C  of  the  state  finance  law with respect to the notes,
renewal notes, refunding notes and any state personal income tax revenue
bonds  issued  to  refinance  any  notes, renewal notes, refunding notes
authorized by this paragraph. On or before their  maturity,  such  notes
may  be  renewed or refunded once with renewal or refunding notes for an
additional period not to exceed one year from the  date  of  renewal  or
refunding.  If  on  or  before  the  maturity date of such notes or such
renewal or refunding notes, the director of the division of  the  budget
shall  determine  that all or a portion of such notes or such renewal or
refunding notes shall be refinanced on a long term basis, such notes  or
such  renewal  or  refunding notes may be refinanced with state personal
income tax revenue bonds in one or more series in an aggregate principal
amount not to exceed the then outstanding principal amount of such notes
or such renewal or refunding notes plus an amount necessary  to  finance
one  or  more debt service reserve funds and to pay costs of issuance of
such refunding bonds, notwithstanding any other provision of law to  the
contrary,  including, specifically, the provisions of chapter fifty-nine
of the laws of two thousand  and  section  sixty-seven-b  of  the  state
finance  law.  For  so  long as any notes, renewal or refunding notes or
such  refunding  bonds  authorized  by  this  paragraph   shall   remain
outstanding,  including any state-supported debt issued to refinance the
refunding  bonds  authorized  by  this  paragraph,   the   restrictions,
limitations  and  requirements  contained in article five-B of the state
finance law shall not apply.
(c) Such notes, renewal or refunding notes and refunding bonds of  the
dormitory  authority  and  the  corporation  shall  not be a debt of the
state, and the state shall not be liable  thereon,  nor  shall  they  be
payable  out  of any funds other than those appropriated by the state to
the dormitory authority and the corporation for debt service and related
expenses pursuant to any financing agreement described in paragraph  (d)
of  this  subdivision,  and  such  notes, renewal or refunding notes and
refunding bonds shall contain on the face thereof a  statement  to  such
effect.  Such  notes, renewal or refunding notes and any refunding bonds
issued to refinance such notes and/or any renewal or refunding notes  on
a  subordinate  basis  shall be secured by subordinate payments from the
revenue bond tax fund established pursuant to  section  ninety-two-z  of
the  state  finance  law.  Refunding  bonds issued to refinance any such
notes  and/or  renewal  or  refunding  notes  on  a  parity  basis  with
outstanding state personal income tax revenue bonds shall be issued only
in  accordance  with  the provisions of the applicable resolution of the
dormitory authority or the corporation authorizing the issuance of state
personal income tax revenue bonds and shall be secured by payments  from
the  revenue  bond  tax  fund  on  a  parity with such outstanding state
personal income tax revenue bonds. Except for purposes of complying with
the internal revenue code, any interest income earned on  note  proceeds
shall  only  be  used  to  pay  debt  service  on such notes. All of the
provisions of the dormitory authority act and the New York  state  urban
development  corporation  act  relating to notes and bonds which are not
inconsistent with the provisions of this section shall  apply  to  notes
and bonds authorized by paragraph (b) of this subdivision, including but
not  limited to the power to establish adequate reserves therefor and to
issue renewal notes, refunding notes and refunding bonds,  in  any  case
subject  to  the  final  maturity limitation for such notes set forth in
paragraph (b) of this subdivision. The issuance of any notes, renewal or
refunding notes and refunding bonds authorized by paragraph (b) of  this

subdivision  shall further be subject to the approval of the director of
the division of the budget.
(d)  Notwithstanding any other law, rule or regulation to the contrary
but subject to the  limitations  contained  in  paragraph  (b)  of  this
subdivision,  in  order  to  assist  the  dormitory  authority  and  the
corporation in undertaking the  administration  and  financing  of  such
notes,  renewal  or refunding notes and refunding bonds, the director of
the budget is hereby authorized to  supplement  any  existing  financing
agreement  with the dormitory authority and the corporation, or to enter
into a new financing agreement with  the  dormitory  authority  and  the
corporation,  upon  such  terms  and  conditions  as the director of the
budget and the dormitory authority and the corporation shall  agree,  so
as  to  annually provide to the dormitory authority and the corporation,
in the aggregate, a sum not to exceed the annual debt  service  payments
and  related expenses required for any notes, renewal or refunding notes
and refunding bonds issued  pursuant  to  this  section.  Any  financing
agreement  supplemented  or  entered into pursuant to this section shall
provide that the obligation of the  state  to  pay  the  amount  therein
provided  shall not constitute a debt of the state within the meaning of
any constitutional or statutory provision and shall be deemed  executory
only  to  the  extent of monies available and that no liability shall be
incurred by the state beyond the monies  available  for  such  purposes,
subject  to  annual appropriation by the legislature. Any such financing
agreement or any payments made or to be made thereunder may be  assigned
or  pledged  by  the dormitory authority and the corporation as security
for  the  notes,  renewal  and  refunding  notes  and  refunding   bonds
authorized by paragraph (b) of this subdivision.
(e)  Notwithstanding  any  other  provision  of  law  to the contrary,
including specifically the provisions of subdivision 3 of  section  67-b
of  the  state finance law, no capital work or purpose shall be required
for any issuance of personal income tax  revenue  or  bond  anticipation
notes,  renewal  or  refunding  notes  or  refunding bonds issued by the
dormitory authority and the corporation pursuant to this section.
(f)  Notwithstanding  any  other  law,  rule,  or  regulation  to  the
contrary,  the  comptroller is hereby authorized and directed to deposit
to the credit of the general fund, all proceeds of personal  income  tax
revenue or bond anticipation notes issued by the dormitory authority and
the  New  York  state  urban  development  corporation  pursuant to this
section.
2. Effect of inconsistent provisions. Insofar  as  the  provisions  of
this  section  are  inconsistent  with  the provisions of any other law,
general, special, or local, the provisions  of  this  section  shall  be
controlling.
3. Severability; construction. The provisions of this section shall be
severable,  and  if  the application of any clause, sentence, paragraph,
subdivision,  section  or  part  of  this  section  to  any  person   or
circumstance shall be adjudged by any court of competent jurisdiction to
be  invalid,  such  judgment  shall  not  necessarily  affect, impair or
invalidate the application of  any  such  clause,  sentence,  paragraph,
subdivision,  section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be  confined
in  its  operation  to  the  clause,  sentence,  paragraph, subdivision,
section or part thereof directly involved in the  controversy  in  which
such judgment shall have been rendered.
§  54-a.  Personal income tax notes; 2022. 1. Findings and declaration
of need. (a) The state of New York finds and determines that the  global
spread  of  the COVID-19 pandemic has had and is expected to continue to
have  a  significant  adverse  impact  on  the  health  and  welfare  of

individuals  in  the  state as well as to the financial condition of the
state during the state's 2021 and 2022  fiscal  years  and  beyond.  The
anticipated  shortfalls  and  deferrals  in  the  state's financial plan
receipts caused by the COVID-19 pandemic has required the state to adopt
policies,   regulations   and  procedures  that  suspend  various  legal
requirements and  address  state  budgetary  pressures,  some  of  which
require   certain   fiscal   management  authorization  measures  to  be
legislatively authorized and established.
(b) Notwithstanding any  other  provision  of  law  to  the  contrary,
including,  specifically,  the  provisions  of chapter 59 of the laws of
2000 and section sixty-seven-b of the state finance law,  the  dormitory
authority  of  the  state  of  New  York  and the corporation are hereby
authorized for the state's 2022 fiscal year, to issue until December 31,
2021, notes with a  maturity  no  later  than  March  31,  2022,  to  be
designated  as personal income tax revenue anticipation notes, in one or
more series in an aggregate principal amount not to exceed three billion
dollars, excluding any such notes issued to finance  one  or  more  debt
service  reserve  funds, and to pay costs of issuance of such notes, for
the purpose of temporarily financing budgetary needs of the state.  Such
purpose  shall constitute an authorized purpose under subdivision two of
section sixty-eight-a of the state  finance  law  for  all  purposes  of
article  five-C  of  the  state  finance  law  with respect to the notes
authorized by this  paragraph.  Such  notes  shall  not  be  renewed  or
refunded  beyond  March 31, 2022. For so long as any notes authorized by
this paragraph shall remain outstanding, the  restrictions,  limitations
and  requirements  contained  in article five-B of the state finance law
shall not apply, other than subdivision four of section sixty-seven-b of
such article.
(c) Such notes of the dormitory authority and  the  corporation  shall
not  be  a debt of the state, and the state shall not be liable thereon,
nor shall they be payable out of any funds other than those appropriated
by the state to the dormitory authority and  the  corporation  for  debt
service  and  related  expenses  pursuant  to  any  financing  agreement
described in paragraph (d) of this subdivision,  and  such  notes  shall
contain on the face thereof a statement to such effect. Such notes shall
be  issued  on  a  subordinate basis and shall be secured by subordinate
payments from the revenue bond tax fund established pursuant to  section
ninety-two-z  of the state finance law. Except for purposes of complying
with the internal revenue code,  any  interest  income  earned  on  note
proceeds  shall  only  be used to pay debt service on such notes. All of
the provisions of the state finance law, the dormitory authority act and
this act relating to notes and bonds which are not inconsistent with the
provisions of this section shall apply to notes authorized by  paragraph
(b)  of  this  subdivision,  including  but  not limited to the power to
establish adequate reserves therefor,  subject  to  the  final  maturity
limitation   for   such  notes  set  forth  in  paragraph  (b)  of  this
subdivision. The issuance of any notes authorized by  paragraph  (b)  of
this  subdivision  shall  further  be  subject  to  the  approval of the
director of the division of the budget.
(d) Notwithstanding any other law, rule or regulation to the  contrary
but  subject  to  the  limitations  contained  in  paragraph (b) of this
subdivision,  in  order  to  assist  the  dormitory  authority  and  the
corporation  in  undertaking  the  administration  and financing of such
notes, the director of the budget is hereby authorized to supplement any
existing financing  agreement  with  the  dormitory  authority  and  the
corporation,  or  to  enter  into  a  new  financing  agreement with the
dormitory authority and the corporation, upon such terms and  conditions
as  the  director  of  the  budget  and  the dormitory authority and the

corporation shall agree, so as to provide to the dormitory authority and
the corporation, a sum not to  exceed  the  debt  service  payments  and
related expenses required for any notes issued pursuant to this section.
Any  financing  agreement  supplemented or entered into pursuant to this
section shall provide that the obligation of the state to pay the amount
therein provided shall not constitute a debt of  the  state  within  the
meaning of any constitutional or statutory provision and shall be deemed
executory  only  to the extent of monies available and that no liability
shall be incurred by the state beyond  the  monies  available  for  such
purposes,  subject  to annual appropriation by the legislature. Any such
financing agreement or any payments made or to be made thereunder may be
assigned or pledged by the dormitory authority and  the  corporation  as
security for the notes authorized by paragraph (b) of this subdivision.
(e)  Notwithstanding  any  other  provision  of  law  to the contrary,
including specifically the provisions of subdivision 3 of  section  67-b
of  the  state finance law, no capital work or purpose shall be required
for any issuance of  personal  income  tax  revenue  anticipation  notes
issued  by  the dormitory authority and the corporation pursuant to this
section.
(f)  Notwithstanding  any  other  law,  rule,  or  regulation  to  the
contrary,  the  comptroller is hereby authorized and directed to deposit
to the credit of the general fund, all proceeds of personal  income  tax
revenue anticipation notes issued by the dormitory authority and the New
York state urban development corporation pursuant to this section.
2.  Effect  of  inconsistent  provisions. Insofar as the provisions of
this section are inconsistent with the  provisions  of  any  other  law,
general,  special,  or  local,  the  provisions of this section shall be
controlling.
3. Severability; construction. The provisions of this section shall be
severable, and if the application of any  clause,  sentence,  paragraph,
subdivision,   section  or  part  of  this  section  to  any  person  or
circumstance shall be adjudged by any court of competent jurisdiction to
be invalid, such  judgment  shall  not  necessarily  affect,  impair  or
invalidate  the  application  of  any  such clause, sentence, paragraph,
subdivision, section, part of this section or remainder thereof, as  the
case  may be, to any other person or circumstance, but shall be confined
in its  operation  to  the  clause,  sentence,  paragraph,  subdivision,
section  or  part  thereof directly involved in the controversy in which
such judgment shall have been rendered.
§ 54-b. Personal income tax notes.  1.  Findings  and  declaration  of
need.  (a) The state of New York finds and determines that shortfalls in
the  state's  financial  plan  arising  from adverse economic and fiscal
events and risks, disasters and emergencies, including but  not  limited
to,  public  health  emergencies,  may  occur  or  develop, and that the
financial impact of such events, risks, disasters and emergencies  could
be  prudently  mitigated  by  certain  fiscal  management  authorization
measures being legislatively authorized and established.
(b) Notwithstanding any  other  provision  of  law  to  the  contrary,
including,  specifically,  the  provisions  of chapter 59 of the laws of
2000 and section sixty-seven-b of the state finance law,  the  dormitory
authority  of  the  state  of  New  York  and the corporation are hereby
authorized to issue personal income tax revenue anticipation notes  with
a  maturity  no  later  than March 31, 2025, in one or more series in an
aggregate principal amount for each fiscal  year  not  to  exceed  three
billion  dollars,  and  to  pay costs of issuance of such notes, for the
purpose of temporarily financing budgetary  needs  of  the  state.  Such
purpose  shall constitute an authorized purpose under subdivision two of
section sixty-eight-a of the state  finance  law  for  all  purposes  of

article  five-C  of  the  state  finance  law  with respect to the notes
authorized by this paragraph. Such notes shall not be renewed,  extended
or refunded. For so long as any notes authorized by this paragraph shall
be outstanding, the restrictions, limitations and requirements contained
in article five-B of the state finance law shall not apply.
(c)  Such  notes  of the dormitory authority and the corporation shall
not be a debt of the state, and the state shall not be  liable  thereon,
nor shall they be payable out of any funds other than those appropriated
by  the  state  to  the dormitory authority and the corporation for debt
service  and  related  expenses  pursuant  to  any  financing  agreement
described  in  paragraph  (d)  of this subdivision, and such notes shall
contain on the face thereof a statement to such effect. Such notes shall
be issued on a subordinate basis and shall  be  secured  by  subordinate
payments  from the revenue bond tax fund established pursuant to section
ninety-two-z of the state finance law. Except for purposes of  complying
with  the  internal  revenue  code,  any  interest income earned on note
proceeds shall only be used to pay debt service on such  notes.  All  of
the provisions of the state finance law, the dormitory authority act and
this act relating to notes and bonds which are not inconsistent with the
provisions  of this section shall apply to notes authorized by paragraph
(b) of this subdivision, including but  not  limited  to  the  power  to
establish  adequate  reserves  therefor,  subject  to the final maturity
limitation  for  such  notes  set  forth  in  paragraph  (b)   of   this
subdivision.  The  issuance  of any notes authorized by paragraph (b) of
this subdivision shall  further  be  subject  to  the  approval  of  the
director of the division of the budget.
(d)  Notwithstanding any other law, rule or regulation to the contrary
but subject to the  limitations  contained  in  paragraph  (b)  of  this
subdivision,  in  order  to  assist  the  dormitory  authority  and  the
corporation in undertaking the  administration  and  financing  of  such
notes, the director of the budget is hereby authorized to supplement any
existing  financing  agreement  with  the dormitory authority and/or the
corporation, or to  enter  into  a  new  financing  agreement  with  the
dormitory   authority  and/or  the  corporation,  upon  such  terms  and
conditions as the director of the budget and the dormitory authority and
the corporation shall agree, so as to provide to the dormitory authority
and the corporation, a sum not to exceed the debt service  payments  and
related expenses required for any notes issued pursuant to paragraph (b)
of  this  subdivision.  Any  financing agreement supplemented or entered
into pursuant to this section shall provide that the obligation  of  the
state  to pay the amount therein provided shall not constitute a debt of
the  state  within  the  meaning  of  any  constitutional  or  statutory
provision  and  shall  be  deemed executory only to the extent of monies
available and that no liability shall be incurred by  the  state  beyond
the  monies available for such purposes, subject to annual appropriation
by the legislature. Any such financing agreement or any payments made or
to be made thereunder may  be  assigned  or  pledged  by  the  dormitory
authority  and  the  corporation as security for the notes authorized by
paragraph (b) of this subdivision.
(e) Notwithstanding any  other  provision  of  law  to  the  contrary,
including  specifically  the provisions of subdivision 3 of section 67-b
of the state finance law, no capital work or purpose shall  be  required
for  any  issuance  of  personal  income  tax revenue anticipation notes
issued by the  dormitory  authority  and  the  corporation  pursuant  to
paragraph (b) of this subdivision.
(f)  Notwithstanding  any  other  law,  rule,  or  regulation  to  the
contrary, the comptroller is hereby authorized and directed  to  deposit
to  the  credit of the general fund, all proceeds of personal income tax

revenue anticipation notes issued by the dormitory authority and the New
York state urban development corporation pursuant to  paragraph  (b)  of
this subdivision.
2.  Effect  of  inconsistent  provisions. Insofar as the provisions of
this section are inconsistent with the  provisions  of  any  other  law,
general,  special,  or  local,  the  provisions of this section shall be
controlling.
3. Severability; construction. The provisions of this section shall be
severable, and if the application of any  clause,  sentence,  paragraph,
subdivision,   section  or  part  of  this  section  to  any  person  or
circumstance shall be adjudged by any court of competent jurisdiction to
be invalid, such  judgment  shall  not  necessarily  affect,  impair  or
invalidate  the  application  of  any  such clause, sentence, paragraph,
subdivision, section, part of this section or remainder thereof, as  the
case  may be, to any other person or circumstance, but shall be confined
in its  operation  to  the  clause,  sentence,  paragraph,  subdivision,
section  or  part  thereof directly involved in the controversy in which
such judgment shall have been rendered.
§ 55. 1. Findings and declaration of need. (a) The state of  New  York
finds  and determines that the global spread of the COVID-19 coronavirus
disease is having and is expected to  continue  to  have  a  significant
impact  on the health and welfare of individuals in the state as well as
a significant financial impact on the state. The serious threat posed by
the COVID-19 coronavirus disease has caused governments,  including  the
state,  to adopt policies, regulations and procedures to suspend various
legal requirements in order to: (i) respond to and mitigate  the  impact
of  the  outbreak;  and  (ii)  address  budgetary pressures to the state
arising from anticipated shortfalls and deferrals in the state's  fiscal
2021  financial  plan  receipts,  thereby  requiring that certain fiscal
management authorization measures be authorized and established.
(b) Notwithstanding any  other  provision  of  law  to  the  contrary,
including,  specifically,  the  provisions  of chapter 59 of the laws of
2000 and section 67-b of the state finance law, during the state's  2021
fiscal  year,  the  dormitory authority of the state of New York and the
urban  development  corporation  are  authorized  to:  (i)  enter   into
commitments  with financial institutions for the establishment of one or
more line of credit facilities and  other  similar  revolving  financing
arrangements  not  in  excess  of  three  billion  dollars  in aggregate
principal amount outstanding at any one time; (ii) draw, at one or  more
times  at the direction of the director of the budget, upon such line of
credit facilities and provide to the state the amounts so drawn for  the
purpose  of  assisting  the  state  to temporarily finance its budgetary
needs; and (iii) secure repayment of  such  draws  under  such  line  of
credit  facilities  with  a service contract of the state, which payment
obligation thereunder shall not constitute a debt of  the  state  within
the  meaning  of  any constitutional or statutory provision and shall be
deemed executory only to the extent moneys are  available  and  that  no
liability shall be incurred by the state beyond the moneys available for
such  purpose,  and  that  such  payment obligation is subject to annual
appropriation by the legislature. Any line of credit facility agreements
entered by the dormitory authority of the state of New York  and/or  the
urban  development  corporation  with financial institutions pursuant to
this section may contain such provisions that the dormitory authority of
the state of New York and/or  the  urban  development  corporation  deem
necessary  or desirable for the establishment of such credit facilities.
The maximum original term of any line of credit facility  shall  be  one
year from the date of incurrence; provided however that any such line of
credit  facility  may  be  extended, renewed or refinanced for up to two

additional one year terms. If on or before  the  maturity  date  of  the
original  term  of  such  line  of  credit  facility  or  any renewal or
extension term thereof, the director of the division of the budget shall
determine  that  all  or  a  portion  of  any outstanding line of credit
facility shall  be  refinanced  on  a  long-term  basis,  the  dormitory
authority  of  the  state  of  New  York  and/or  the  urban development
corporation are authorized to refinance such  line  of  credit  facility
with  state  personal  income  tax  revenue  bonds  and/or state service
contract bonds in one or more series in an  aggregate  principal  amount
not  to  exceed  the  then  outstanding principal amount of such line of
credit facility  and  any  accrued  interest  thereon,  plus  an  amount
necessary  to  finance one or more debt service reserve funds and to pay
costs of issuance of such state personal income tax revenue bonds and/or
state service contract bonds.
(c)  Notwithstanding  any  other  law,  rule,  or  regulation  to  the
contrary,  the  comptroller is hereby authorized and directed to deposit
to the credit of the general fund, all amounts provided by the dormitory
authority of  the  state  of  New  York  and/or  the  urban  development
corporation  to the state from draws made on any line of credit facility
authorized by paragraph (b) of this subdivision.
(d) Notwithstanding any  other  provision  of  law  to  the  contrary,
including  specifically  the provisions of subdivision 3 of section 67-b
of the state finance law, no capital work or purpose shall  be  required
for  any  indebtedness  incurred  in  connection with any line of credit
facility authorized  by  paragraph  (b)  of  this  subdivision  and  any
extensions  or  renewals  thereof,  or for any state personal income tax
revenue bonds and/or state service contract bonds  issued  to  refinance
any  of  the  foregoing,  or  for  any  service contract entered into in
connection with any line of credit facility, all in accordance with this
section.
(e) Notwithstanding any other provision of law to the contrary, for so
long as any such line of credit facility shall remain  outstanding,  the
restrictions,  limitations  and requirements contained in article 5-B of
the state finance law shall not apply. In addition,  such  restrictions,
limitations  and  requirements  shall  not  apply  to any state personal
income tax revenue bonds and/or state service contract bonds  issued  to
refund  such  line of credit facility for so long as such state personal
income tax revenue bonds  and/or  state  service  contract  bonds  shall
remain  outstanding, including any state-supported debt issued to refund
such state personal  income  tax  revenue  bonds  and/or  state  service
contract  bonds.  Any  such  line  of  credit  facility,  including  any
extensions or renewals  thereof,  and  any  state  personal  income  tax
revenue  bonds and/or state service contract bonds issued to refund such
line of credit facilities shall be deemed to be incurred or  issued  for
an  authorized  purpose  within  the meaning of subdivision 2 of section
68-a of the state finance law. As applicable, all of the  provisions  of
the  state  finance  law,  the  dormitory authority act and the New York
state urban development corporation act  relating  to  notes  and  bonds
which  are  not  inconsistent  with the provisions of this section shall
apply to any issuance of state personal income tax revenue bonds  and/or
state  service  contract  bonds  issued  to refinance any line of credit
facility authorized by paragraph (b) of this subdivision.  The  issuance
of  any  state  personal  income  tax revenue bonds and/or state service
contract bonds issued to refinance any  such  line  of  credit  facility
shall further be subject to the approval of the director of the division
of the budget.
(f) Any draws on a line of credit facility authorized by paragraph (b)
of  this subdivision shall only be made and the service contract entered

into in connection with such line of credit  facilities  shall  only  be
executed  and  delivered  to the dormitory authority of the state of New
York and/or the urban development corporation  if  the  legislature  has
enacted  sufficient appropriation authority to provide for the repayment
of all amounts expected to be drawn by the dormitory  authority  of  the
state  of  New  York and/or the urban development corporation under such
line of credit facility during fiscal year 2021. Amounts repaid under  a
line  of  credit  facility  during  fiscal  year 2021 may be re-borrowed
during such fiscal  year  provided  that  the  legislature  has  enacted
sufficient  appropriation  authority to provide for the repayment of any
such re-borrowed amounts. Neither the dormitory authority of  the  state
of  New  York  nor  the  urban  development  corporation  shall have any
financial liability for the repayment of draws under any line of  credit
facility  authorized  by  paragraph  (b)  of this subdivision beyond the
moneys received for such purpose under the service  contract  authorized
by paragraph (g) of this subdivision.
(g) The director of the budget is authorized to enter into one or more
service  contracts  or  other  agreements, none of which shall exceed 30
years in duration, with the dormitory authority of the state of New York
and/or the urban development corporation, upon such terms and conditions
as the director of the budget and dormitory authority of  the  state  of
New  York  and/or  the  urban  development  corporation shall agree. Any
service contract or other  agreements  entered  into  pursuant  to  this
paragraph shall provide for state commitments to provide annually to the
dormitory   authority  of  the  state  of  New  York  and/or  the  urban
development corporation a sum or sums, upon such terms and conditions as
shall be deemed appropriate by  the  director  of  the  budget  and  the
dormitory   authority  of  the  state  of  New  York  and/or  the  urban
development corporation, to fund the payment of amounts  due  under  any
line  of credit facility and any state personal income tax revenue bonds
and/or state service contract bonds issued to  refinance  such  line  of
credit  facility.  Any  such  service contract or other agreements shall
provide that the obligation of the director of  the  budget  or  of  the
state  to  fund  or  to  pay  the amounts therein provided for shall not
constitute a debt of the state within the meaning of any  constitutional
or  statutory provision and shall be deemed executory only to the extent
moneys are available and that no liability  shall  be  incurred  by  the
state  beyond  the  moneys  available  for  such  purpose, and that such
obligation is subject to annual appropriation by the legislature.
(h) Any service contract or other agreements entered into pursuant  to
paragraph  (g)  of  this  subdivision or any payments made or to be made
thereunder may be assigned and pledged by the dormitory authority of the
state of New York and/or the urban development corporation  as  security
for  any  related  payment  obligation  it  may  have  with  one or more
financial institutions in connection with  a  line  of  credit  facility
authorized by paragraph (b) of this subdivision.
(i)  In  addition  to  the  foregoing, the director of the budget, the
dormitory authority of the state of New York and the  urban  development
corporation shall each be authorized to enter into such other agreements
and  to  take  or  cause  to  be  taken  such  additional actions as are
necessary or desirable to effectuate the purposes  of  the  transactions
contemplated  by  a  line  of  credit  facility  and the related service
contract.
(j) No later than seven days after a draw occurs on the line of credit
facility, the director of the budget shall provide notification of  such
draw  to  the president pro tempore of the senate and the speaker of the
assembly.
(k)  The  authorization,  establishment  and  use  by  the   dormitory
authority of the state of New York and the urban development corporation
of  a  line  of  credit  facility  authorized  by  paragraph (b) of this
subdivision, and the execution, sale  and  issuance  of  state  personal
income  tax  revenue  bonds  and/or  state  service  contract  bonds  to
refinance any such line of  credit  facility  shall  not  be  deemed  an
action,  as  such  term  is  defined  in  article 8 of the environmental
conservation law, for the purposes of such article. Such exemption shall
be strictly limited in its application to such financing  activities  of
the  dormitory  authority  of  the  state  of  New  York  and  the urban
development corporation undertaken pursuant to this section and does not
exempt any other entity from compliance with such article.
(l) Nothing contained in this section shall be construed to limit  the
abilities  of  the  director of the budget and the authorized issuers of
state-supported debt to perform their respective obligations on existing
service contracts or other agreements entered into  prior  to  April  1,
2020.
2.  Effect  of  inconsistent  provisions. Insofar as the provisions of
this section are inconsistent with the  provisions  of  any  other  law,
general,  special,  or  local,  the  provisions  of  this  act  shall be
controlling.
3. Severability; construction. The provisions of this section shall be
severable, and if the application of any  clause,  sentence,  paragraph,
subdivision,   section  or  part  of  this  section  to  any  person  or
circumstance shall be adjudged by any court of competent jurisdiction to
be invalid, such  judgment  shall  not  necessarily  affect,  impair  or
invalidate  the  application  of  any  such clause, sentence, paragraph,
subdivision, section, part of this section or remainder thereof, as  the
case  may be, to any other person or circumstance, but shall be confined
in its  operation  to  the  clause,  sentence,  paragraph,  subdivision,
section  or  part  thereof directly involved in the controversy in which
such judgment shall have been rendered.
§ 55-a. Line of credit facilities; 2022. 1. Findings  and  declaration
of  need. (a) The state of New York finds and determines that the global
spread of the COVID-19 pandemic has had and is expected to  continue  to
have  a  significant  adverse  impact  on  the  health  and  welfare  of
individuals in the state as well as to the financial  condition  of  the
state  during  the  state's  2021  and 2022 fiscal years and beyond. The
anticipated shortfalls and  deferrals  in  the  state's  financial  plan
receipts  caused  by  the  COVID-19  pandemic has required the state, to
adopt policies, regulations and procedures that  suspend  various  legal
requirements  and  address  state  budgetary  pressures,  some  of which
require  certain  fiscal  management  authorization   measures   to   be
legislatively authorized and established.
(b)  Definitions.  When used in this subdivision "related expenses and
fees" shall mean  interest  costs,  commitment  fees  and  other  costs,
expenses  and fees incurred in connection with a line of credit facility
and/or a service contract or other agreement of the state securing  such
line  of  credit  facility that contractually obligates the state to pay
debt service subject to an appropriation.
(c) Notwithstanding any  other  provision  of  law  to  the  contrary,
including,  specifically,  the  provisions  of chapter 59 of the laws of
2000 and section 67-b of the state finance law, the dormitory  authority
of  the  state  of  New  York  and the urban development corporation are
authorized until March 31, 2022 to:  (i)  enter  into  commitments  with
financial  institutions  for  the  establishment  of one or more line of
credit facilities and other similar revolving financing arrangements not
in excess of two billion dollars in  aggregate  principal  amount;  (ii)

draw,  at  one  or  more  times  at the direction of the director of the
budget, upon such line of credit facilities and provide to the state the
amounts so drawn for the purpose of assisting the state  to  temporarily
finance its budgetary needs; provided, however, that the total amount of
such  draws  shall  not  exceed  two  billion  dollars; and (iii) secure
repayment of such draws under such line of credit  facilities,  together
with  related  expenses  and  fees,  which payment obligation thereunder
shall not constitute a debt of the  state  within  the  meaning  of  any
constitutional or statutory provision and shall be deemed executory only
to  the  extent  moneys  are  available  and  that no liability shall be
incurred by the state beyond the moneys available for such purpose,  and
that  such  payment obligation is subject to annual appropriation by the
legislature. Any line of  credit  facility  agreements  entered  by  the
dormitory   authority  of  the  state  of  New  York  and/or  the  urban
development corporation with financial  institutions  pursuant  to  this
section  may contain such provisions that the dormitory authority of the
state  of  New  York  and/or  the  urban  development  corporation  deem
necessary  or desirable for the establishment of such credit facilities.
The maximum term of any line of credit facility shall be one  year  from
the  date  of incurrence; provided however that no draw on any such line
of credit facility shall  occur  after  March  31,  2022,  and  provided
further  that any such line of credit facility whose term extends beyond
March 31, 2022, shall be supported by sufficient appropriation authority
enacted by the legislature  that  provides  for  the  repayment  of  all
amounts  drawn  and remaining unpaid as of March 31, 2022, together with
related expenses and fees incurred and to become due and payable by  the
dormitory   authority  of  the  state  of  New  York  and/or  the  urban
development corporation.
(d)  Notwithstanding  any  other  law,  rule,  or  regulation  to  the
contrary,  the  comptroller is hereby authorized and directed to deposit
to the credit of the general fund, all amounts provided by the dormitory
authority of  the  state  of  New  York  and/or  the  urban  development
corporation  to the state from draws made on any line of credit facility
authorized by paragraph (c) of this subdivision.
(e) Notwithstanding any  other  provision  of  law  to  the  contrary,
including  specifically  the provisions of subdivision 3 of section 67-b
of the state finance law, no capital work or purpose shall  be  required
for  any  indebtedness  incurred  in  connection with any line of credit
facility authorized by paragraph (c) of this  subdivision,  or  for  any
service  contract or other agreement entered into in connection with any
such line of credit facility, all in accordance with this section.
(f) Notwithstanding any other provision of law to the contrary, for so
long as any such line of credit facility shall remain  outstanding,  the
restrictions,  limitations  and requirements contained in article 5-B of
the state finance law shall not apply. Any such line of credit  facility
shall  be  deemed to be incurred or issued for (i) an authorized purpose
within the meaning of subdivision 2 of section 68-a of the state finance
law for all purposes of article 5-C of the state finance law and section
92-z of the state finance law, and/or (ii) an authorized purpose  within
the  meaning  of  subdivision 2 of section 69-m of the state finance law
for all purposes of article 5-F of the state  finance  law  and  section
92-h of the state finance law, as the case may be. As applicable, all of
the provisions of the state finance law, the dormitory authority act and
the  New  York state urban development corporation act relating to notes
and bonds which are not inconsistent with the provisions of this section
shall apply to any line of credit facility and other  similar  revolving
financing  arrangement  established in accordance with the authorization
contained in paragraph (c) of this subdivision.
(g) Each draw on a line of credit facility authorized by paragraph (c)
of this subdivision shall only be made if the service contract or  other
agreement  entered  into in connection with such line of credit facility
is supported  by  sufficient  appropriation  authority  enacted  by  the
legislature  to  repay  the  amount  of  the draw, together with related
expenses and fees to become due and payable. Amounts repaid under a line
of credit facility may be re-borrowed under the same or another line  of
credit facility authorized by paragraph (c) of this subdivision provided
that the legislature has enacted sufficient appropriation authority that
provides  for  the  repayment  of any such re-borrowed amounts, together
with related expenses and fees to become due and  payable.  Neither  the
dormitory  authority  of the state of New York nor the urban development
corporation shall have any financial  liability  for  the  repayment  of
draws  under  any line of credit facility authorized by paragraph (c) of
this subdivision beyond the moneys received for such purpose  under  any
service  contract or other agreement authorized by paragraph (h) of this
subdivision.
(h) The director of the budget is authorized to enter into one or more
service contracts or other agreements, none of which  shall  exceed  one
year  in duration, with the dormitory authority of the state of New York
and/or the urban development corporation, upon such terms and conditions
as the director of the budget and dormitory authority of  the  state  of
New  York  and/or  the  urban  development  corporation shall agree. Any
service contract or  other  agreement  entered  into  pursuant  to  this
paragraph shall provide for state commitments to provide annually to the
dormitory   authority  of  the  state  of  New  York  and/or  the  urban
development corporation a sum or sums, upon such terms and conditions as
shall be deemed appropriate by  the  director  of  the  budget  and  the
dormitory   authority  of  the  state  of  New  York  and/or  the  urban
development corporation, to fund the payment of all  amounts  to  become
due  and  payable  under  any  line of credit facility. Any such service
contract or other agreement shall provide that  the  obligation  of  the
director  of  the  budget  or of the state to fund or to pay the amounts
therein provided for shall not constitute a debt of the state within the
meaning of any constitutional or statutory provision and shall be deemed
executory only to the extent moneys are available and that no  liability
shall  be  incurred  by  the  state beyond the moneys available for such
purpose, and that such obligation is subject to annual appropriation  by
the legislature.
(i)  Any  service contract or other agreement entered into pursuant to
paragraph (h) of this subdivision or any payments made  or  to  be  made
thereunder may be assigned and pledged by the dormitory authority of the
state  of  New York and/or the urban development corporation as security
for any related  payment  obligation  it  may  have  with  one  or  more
financial  institutions  in  connection  with  a line of credit facility
authorized by paragraph (c) of this subdivision.
(j) In addition to the foregoing, the  director  of  the  budget,  the
dormitory  authority  of the state of New York and the urban development
corporation shall each be authorized to enter into such other agreements
and to take or  cause  to  be  taken  such  additional  actions  as  are
necessary  or  desirable  to effectuate the purposes of the transactions
contemplated by a line  of  credit  facility  and  the  related  service
contract or other agreement.
(k)  No  later than seven days after a draw occurs on a line of credit
facility, the director of the budget shall provide notification of  such
draw  to  the president pro tempore of the senate and the speaker of the
assembly.
(l)  The  authorization,  establishment  and  use  by  the   dormitory
authority of the state of New York and the urban development corporation
of  a  line  of  credit  facility  authorized  by  paragraph (c) of this
subdivision shall not be deemed an action, as such term  is  defined  in
article  8  of  the  environmental conservation law, for the purposes of
such  article.  Such  exemption  shall  be  strictly  limited   in   its
application  to  such financing activities of the dormitory authority of
the state of New York and the urban development  corporation  undertaken
pursuant  to  this  section  and  does  not exempt any other entity from
compliance with such article.
(m) Nothing contained in this section shall be construed to limit  the
abilities  of  the  director of the budget and the authorized issuers of
state personal income tax revenue bonds, state sales tax  revenue  bonds
or  service  contract bonds to perform their respective obligations with
respect to existing service contracts or other agreements.
2. Effect of inconsistent provisions. Insofar  as  the  provisions  of
this  section  are  inconsistent  with  the provisions of any other law,
general, special,  or  local,  the  provisions  of  this  act  shall  be
controlling.
3. Severability; construction. The provisions of this section shall be
severable,  and  if  the application of any clause, sentence, paragraph,
subdivision,  section  or  part  of  this  section  to  any  person   or
circumstance shall be adjudged by any court of competent jurisdiction to
be  invalid,  such  judgment  shall  not  necessarily  affect, impair or
invalidate the application of  any  such  clause,  sentence,  paragraph,
subdivision,  section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be  confined
in  its  operation  to  the  clause,  sentence,  paragraph, subdivision,
section or part thereof directly involved in the  controversy  in  which
such judgment shall have been rendered.
§  56.  State-supported  debt;  2021.  1.  In light of the significant
impact that the global spread of the  COVID-19  coronavirus  disease  is
having  and is expected to continue to have on the health and welfare of
individuals in the state as well as on the financial  condition  of  the
state,  and  notwithstanding any other provision of law to the contrary,
the dormitory  authority  of  the  state  of  New  York  and  the  urban
development  corporation  are  each  authorized to issue state-supported
debt pursuant to article 5-C of the state  finance  law  to  assist  the
state to manage its financing needs during its 2021 fiscal year, without
regard  to  any  restrictions, limitations and requirements contained in
article 5-B of the state  finance  law,  other  than  subdivision  4  of
section  67-b  of  such  article, and such state-supported debt shall be
deemed to be issued for an authorized  purpose  within  the  meaning  of
subdivision  2 of section 68-a of the state finance law for all purposes
of article 5-C of the state finance law. Furthermore, any  bonds  issued
directly  by  the  state  during  the  state's 2021 fiscal year shall be
issued without regard to any restrictions, limitations and  requirements
contained   in  article  5-B  of  the  state  finance  law,  other  than
subdivision 4 of section 67-b of  such  article.  For  so  long  as  any
state-supported  debt  issued  during the state's 2021 fiscal year shall
remain outstanding, including any state-supported debt issued to  refund
state-supported  debt  issued during such fiscal year, the restrictions,
limitations and requirements contained  in  article  5-B  of  the  state
finance  law,  other than subdivision 4 of section 67-b of such article,
shall not apply.
2. Effect of inconsistent provisions. Insofar  as  the  provisions  of
this  section  are  inconsistent  with  the provisions of any other law,

general, special,  or  local,  the  provisions  of  this  act  shall  be
controlling.
3. Severability; construction. The provisions of this section shall be
severable,  and  if  the application of any clause, sentence, paragraph,
subdivision,  section  or  part  of  this  section  to  any  person   or
circumstance shall be adjudged by any court of competent jurisdiction to
be  invalid,  such  judgment  shall  not  necessarily  affect, impair or
invalidate the application of  any  such  clause,  sentence,  paragraph,
subdivision,  section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be  confined
in  its  operation  to  the  clause,  sentence,  paragraph, subdivision,
section or part thereof directly involved in the  controversy  in  which
such judgment shall have been rendered.
§  56-a.  State-supported  debt;  2022.  1. In light of the continuing
adverse impact that the COVID-19 pandemic is expected  to  have  on  the
health  and  welfare  of  individuals  in  the  state  as well as to the
financial condition of the state during the state's  2022  fiscal  year,
and  notwithstanding  any  other  provision  of law to the contrary, the
dormitory authority of the state of  New  York,  the  urban  development
corporation,   and  the  New  York  state  thruway  authority  are  each
authorized to  issue  state-supported  debt  pursuant  to  article  5-B,
article 5-C and article 5-F of the state finance law to assist the state
to  manage  its  financing  needs  during  its 2022 fiscal year, without
regard to any restrictions, limitations and  requirements  contained  in
article  5-B  of  the  state  finance  law,  other than subdivision 4 of
section 67-b of such article, and such  state-supported  debt  shall  be
deemed  to be issued for (i) an authorized purpose within the meaning of
subdivision 2 of section 68-a of the state finance law for all  purposes
of  article  5-C  of the state finance law and section 92-z of the state
finance law, or  (ii)  an  authorized  purpose  within  the  meaning  of
subdivision  2 of section 69-m of the state finance law for all purposes
of article 5-F of the state finance law and section 92-h  of  the  state
finance  law, as the case may be. Furthermore, any bonds issued directly
by the state during the state's 2022 fiscal year shall be issued without
regard to any restrictions, limitations and  requirements  contained  in
article  5-B  of  the  state  finance  law,  other than subdivision 4 of
section 67-b of such article. For so long as  any  state-supported  debt
issued  during  the  state's  2022 fiscal year shall remain outstanding,
including any state-supported debt issued to refund state-supported debt
issued during  such  fiscal  year,  the  restrictions,  limitations  and
requirements  contained  in  article 5-B of the state finance law, other
than subdivision 4 of section 67-b of such article, shall not apply.
2. Effect of inconsistent provisions. Insofar  as  the  provisions  of
this  section  are  inconsistent  with  the provisions of any other law,
general, special,  or  local,  the  provisions  of  this  act  shall  be
controlling.
3. Severability; construction. The provisions of this section shall be
severable,  and  if  the application of any clause, sentence, paragraph,
subdivision,  section  or  part  of  this  section  to  any  person   or
circumstance shall be adjudged by any court of competent jurisdiction to
be  invalid,  such  judgment  shall  not  necessarily  affect, impair or
invalidate the application of  any  such  clause,  sentence,  paragraph,
subdivision,  section, part of this section or remainder thereof, as the
case may be, to any other person or circumstance, but shall be  confined
in  its  operation  to  the  clause,  sentence,  paragraph, subdivision,
section or part thereof directly involved in the  controversy  in  which
such judgment shall have been rendered.
§  57.  1.  Notwithstanding  the  provisions  of  any other law to the
contrary, the dormitory authority and the urban development  corporation
are  hereby authorized to issue bonds or notes in one or more series for
the purpose of funding project costs  for  the  Empire  Station  Complex
project,  and such project shall be deemed a capital work or purpose for
purposes of subdivision 3 of section 67-b of the state finance law.  The
aggregate  principal amount of bonds authorized to be issued pursuant to
this section shall not exceed one billion three hundred million  dollars
$1,300,000,000,  excluding bonds issued to fund one or more debt service
reserve funds, to pay costs of issuance of  such  bonds,  and  bonds  or
notes issued to refund or otherwise repay such bonds or notes previously
issued.  Such  bonds  and notes of the dormitory authority and the urban
development corporation shall not be a debt of the state, and the  state
shall  not be liable thereon, nor shall they be payable out of any funds
other than those appropriated by the state to  the  dormitory  authority
and  the  urban  development  corporation  for  principal, interest, and
related expenses pursuant to a service contract and such bonds and notes
shall contain on the face thereof a statement to such effect. Except for
purposes of complying with  the  internal  revenue  code,  any  interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
2.  Notwithstanding  any  other  provision  of law to the contrary, in
order to assist  the  dormitory  authority  and  the  urban  development
corporation  in  undertaking  the  financing  for  project costs for the
Empire Station Complex project, the director of  the  budget  is  hereby
authorized  to  enter  into  one  or  more  service  contracts  with the
dormitory authority and the urban development corporation, none of which
shall exceed thirty years in duration, upon such terms and conditions as
the director of the budget and the dormitory  authority  and  the  urban
development  corporation  agree,  so  as  to  annually  provide  to  the
dormitory authority  and  the  urban  development  corporation,  in  the
aggregate,  a  sum  not  to  exceed the principal, interest, and related
expenses required for such bonds and notes. Any service contract entered
into pursuant to this section shall provide that the obligation  of  the
state  to pay the amount therein provided shall not constitute a debt of
the  state  within  the  meaning  of  any  constitutional  or  statutory
provision  and  shall  be  deemed executory only to the extent of monies
available and that no liability shall be incurred by  the  state  beyond
the  monies  available for such purpose, subject to annual appropriation
by the legislature. Any such contract or any payments made or to be made
thereunder may be assigned and pledged by the  dormitory  authority  and
the  urban  development corporation as security for its bonds and notes,
as authorized by this section.
* § 58. Gateway project. 1. Findings  and  declaration  of  need.  The
state  of  New  York finds and determines that providing funding for the
passenger rail transportation project  commonly  known  as  the  gateway
project,  is  needed  to  preserve  and  improve  the  functionality and
strengthen  the  resiliency   of   long-distance   and   commuter   rail
infrastructure  between  the  state  of  New  York  and the state of New
Jersey.
2. Definitions. When used in this section:
(a) "Commission" shall mean  the  gateway  development  commission,  a
bi-state  commission and a body corporate and politic established by the
state of New Jersey and the state of New  York,  acting  in  the  public
interest  and  exercising essential governmental functions in accordance
with the Gateway development commission act, and any successor thereto.
(b) "Federal transportation loan" shall mean one or more loans made to
the commission to finance the Hudson tunnel project under or pursuant to

any U.S. Department of Transportation program or act, including but  not
limited  to  the Railroad Rehabilitation & Improvement Financing Program
or the Transportation Infrastructure Finance and Innovation  Act,  which
loan or loans are related to the state capital commitment.
(c) "Gateway development commission act" shall mean chapter 108 of the
laws of New York, 2019, as amended.
(d) "Gateway project" shall mean the Hudson tunnel project.
(e)  "Hudson  tunnel  project"  shall  mean  the project consisting of
construction of a tunnel connecting the  states  of  New  York  and  New
Jersey  and  the  completion  of  certain ancillary facilities including
construction of concrete casing at Hudson Yards in Manhattan,  New  York
and the rehabilitation of the existing North River Tunnels.
(f)  "State  capital commitment" shall mean (i) an aggregate principal
amount not to exceed  $2,850,000,000,  plus  (ii)  any  interest  costs,
including capitalized interest, and (iii) related expenses and fees, all
of  which  shall  be  payable  by  the  state  of New York to, or at the
direction of, the commission under one  or  more  service  contracts  or
other  agreements  pursuant  to this section, as well as any expenses of
the state incurred in connection therewith.
(g) "Related expenses and fees" shall mean commitment fees,  servicing
and  monitoring costs, credit risk premium payments and similar charges,
administrative  fees  and  other  ancillary  costs,  expenses  and  fees
incurred, and to become due and payable, by the commission in connection
with the Federal transportation loan, or by the state in connection with
any service contract.
3.  Notwithstanding  any  other  provision  of law to the contrary, in
order to provide for the payment for the state capital  commitment,  the
director  of  the  budget is hereby authorized to enter into one or more
service contracts or other agreements with the commission, none of which
shall exceed the maximum duration of the  Federal  transportation  loan,
upon  such  terms  and  conditions  as  the  director  of the budget and
commission agree, so as to  provide  to  or  at  the  direction  of  the
commission,  for  each state fiscal year, a sum not to exceed the amount
required to  be  paid  as  principal  and  interest  under  the  Federal
transportation loan for such fiscal year, plus related expenses and fees
for such fiscal year. Any such service contract or other agreement shall
provide  that  the  obligation  of  the  state to pay the amount therein
provided shall not constitute a debt of the state within the meaning  of
any  constitutional or statutory provision and shall be deemed executory
only to the extent of monies  available,  that  no  liability  shall  be
incurred  by the state beyond the monies available for such purpose, and
that  such  obligation  is  subject  to  annual  appropriation  by   the
legislature.  Any  such  service  contract  or  other  agreement and any
payments made or to be made thereunder may be assigned  and  pledged  by
the  commission  as  security for the repayment by the commission of the
Federal transportation loan.
4. The director of the budget is also authorized to  enter  into  such
other  agreements  and  to  take  or  cause  to be taken such additional
actions as are necessary or desirable to effectuate the purposes of  the
transactions  contemplated  by the state capital commitment provided for
herein and  the  service  contract  or  other  agreement  authorized  by
subdivision 3 of this section.
5.  On  or  before  the beginning of each quarter, the director of the
budget shall certify to the state comptroller the  estimated  amount  of
monies  that  shall  be  reserved  in  the general debt service fund for
payment pursuant to any service contract authorized by subdivision 3  of
this  section payable by such fund during each month of the state fiscal
year. Such  certificate  may  be  periodically  updated,  as  necessary.

Notwithstanding  any  provision  of  law  to  the  contrary,  the  state
comptroller shall reserve in the general debt service fund the amount of
monies identified on such certificate as necessary for payment  pursuant
to  any  service  contract  authorized  by subdivision 3 of this section
during the current or next succeeding quarter of the state fiscal  year.
Such  monies  so  reserved shall not be available for any other purpose.
Such certificate shall be reported to the  chairpersons  of  the  Senate
Finance Committee and the Assembly Ways and Means Committee.
* NB There are 2 § 58's
§ 58. Reporting. 1. Definitions. For the purposes of this section, the
following terms shall have the following meanings:
(a) "Economic development benefits" shall mean:
(i) available state funds including, but not limited to, state grants,
loans, loan guarantees, loan interest subsidies, and subsidies; and
(ii)  tax  credits,  tax  exemptions,  reduced  tax rates or other tax
incentives which are applied for and preapproved or certified by a state
agency.
(a-1) "Empire state economic development benefits"  shall  mean  those
economic  development  benefits  made available to the urban development
corporation or the department of  economic  development  to  award  such
benefits to qualified recipients.
(a-2)   "Additional   state  benefits  for  empire  state  development
projects" shall mean those benefits provided by other state agencies for
the same project receiving empire state economic development benefits.
(a-3) "Other state agency economic development  benefits"  shall  mean
those  economic development benefits made available to a state agency to
award such benefits to qualified  recipients  for  economic  development
projects, provided such information regarding such awards is required to
be  submitted  to the urban development corporation or the department of
economic development per subdivision 6 of this section.
(a-4) "Aggregate  economic  development  benefits"  shall  mean  those
benefits  provided  for  in  paragraphs  (a-1),  (a-2) and (a-3) of this
subdivision and displayed separately in the database created pursuant to
subdivision 2 of this section.
(b)  "Qualified  participant"  shall  mean  an  individual,  business,
limited  liability  corporation or any other entity that has applied for
and received benefits as defined in paragraphs (a-1)  through  (a-4)  of
this subdivision.
(c)  "State  agency"  shall  mean any state department, board, bureau,
division, commission, committee, state  authority,  public  corporation,
council,   office  or  other  state  governmental  entity  performing  a
governmental or proprietary function for the state, as well as  entities
created  by  any  of  the  preceding  or that are governed by a board of
directors or similar body with a majority of members designated  by  one
or more state officials;
(d) "Full-time equivalent" shall mean a unit of measure which is equal
to one filled, full-time, annual-salaried position.
(e)  "Project  hires" shall mean a job in which an individual is hired
for a season or for a limited period of time.
(f) "Part-time job" shall  mean  a  job  in  which  an  individual  is
employed  by  a  qualified participant for less than thirty-five hours a
week.
2. Notwithstanding any laws  to  the  contrary,  the  corporation,  in
cooperation  with the department of economic development, shall create a
searchable database, or modify an existing one, displaying empire  state
economic  development  benefits  that  a  qualified participant has been
awarded. Such  database  shall  also  display  additional  state  agency
benefits  that  a  qualified  participant has been awarded in connection

with an empire state development project such qualified participant  has
received.  Such  database shall also display other state agency economic
development benefits that a qualified participant has been  awarded,  to
the  extent that such data has been made available to and is received by
the corporation in the form and manner prescribed by the corporation.
3. Data related to paragraphs (a-2) and (a-3) of subdivision 1 of this
section shall be analyzed for quality and  accuracy  by  the  agency  or
authority  providing  such  funding to qualified recipients and managing
the contracts related thereto.  Upon  submission  of  such  other  state
agency   economic  development  benefit  data  to  the  corporation  for
inclusion in the database, all awarding agencies and  authorities  shall
certify  to  the  corporation that each field of project data accurately
summarizes economic development project investments made  by  the  other
agency  or  authority.  Such  searchable  database  shall  include, at a
minimum,  the  following  features  and  functionality  to  the   extent
practicable:
(a)  the  ability  to  search  the  database  by  each of the reported
information fields;
(b) the ability to be searchable, downloadable, and updated quarterly,
and posted on a New York state maintained website as well as  referenced
on  the  empire  state  development  website,  with a direct link to the
database;
(c) for projects started on or after January 1,  2018,  the  following
information shall be included:
(i)  a qualified participant's name and project, project location, the
project's complete address, including the postal code in a separate  and
searchable field, and the economic region of the state;
(ii) the time span over which a qualified participant is to receive or
has received aggregate economic development benefits;
(iii)  the  type  of  such  aggregate  economic  development  benefits
provided to a qualified participant, including the name of  the  program
or  programs  through  which aggregate economic development benefits are
provided, and details as to whether such  programs  are  grants  or  tax
credit  programs  as a separate and searchable field. Such data shall be
provided for other state agency benefits, to the extent practicable, and
such requirement shall be applied  to  contracts  initiated  six  months
after the effective date of this section;
(iv)  the  total  number  of  employees  at  all  sites utilizing such
aggregate economic development benefits at the time  of  the  agreement,
including the number of full-time equivalents, provided that any project
hires  or  part-time  jobs  converted  to full-time equivalents shall be
displayed in  separate  fields  and  denoted  as  such,  to  the  extent
practicable,  and  such  requirements  shall  be  applied  to  contracts
initiated six months after the effective date of this section;
(v) for any aggregate economic development benefit that  provides  for
job retention or job creation that a qualified participant is receiving,
the  total  job  creation  commitments,  job  retention commitments, job
creation actual number, and the job retention actual  number,  displayed
in  terms  of  full-time  equivalents  and part-time jobs, shall each be
displayed as separate and searchable fields;
(vi) the amount of aggregate economic development benefits received by
a qualified participant to date;
(vii) for all projects associated with utilization  goals  related  to
minority  and  women-owned businesses, per article 15-A of the executive
law, such goals and progress towards such goals shall be included to the
extent practicable, and such requirement shall be applied  to  contracts
initiated twelve months after the effective date of this section;
(viii)  the total public-private investment made to the project, total
state funding received by a project, and project status;
(ix)  details  related  to  individual  project  compliance indicating
whether, during the current reporting quarter, the corporation or  other
entity   managing  the  award  has  reduced,  cancelled,  or  recaptured
aggregate economic development benefits from  a  qualified  participant,
and,  if  so,  the  total  amount  of  the  reduction,  cancellation, or
recapture.  Separately,  a  notation  of  penalties  assessed  shall  be
displayed  in  a  separate  and searchable field, as well as the reasons
therefor in another separate and searchable field;
(x)  the  ability  to  digitally  select  defined  individual   fields
corresponding   to  any  of  the  reported  information  from  qualified
participants to create unique database views;
(xi) the ability to download the database in its entirety, or in part,
in a common machine readable format;
(xii) a definition or description of terms for fields in the database;
(xiii) a  summary  of  each  aggregate  economic  development  benefit
awarded to qualified participants;
(xiv)  a user-friendly guide to outline the features and functionality
of the database; and
(xv) a dedicated email account for  the  public  to  direct  questions
related to the database.
4.  Upon  request the corporation shall provide, or direct to a source
providing, in an electronically accessible and  downloadable  form,  any
contracts or award agreements for projects included in paragraphs (a-1),
(a-2),  or  (a-3)  of  subdivision 1 of this section, to the extent such
contracts or award agreements are available to the  public  pursuant  to
article  6  of  the  public  officers  law.  Provided  however that only
contract documents and award agreements related to projects  defined  in
paragraph  (a-1) of subdivision 1 of this section shall be shared by the
corporation, and all contract documents and award agreements related  to
projects  defined in paragraphs (a-2) and (a-3) of subdivision 1 of this
section shall be shared,  upon  request,  by  the  agency  or  authority
holding and managing such contract;
5.  The  corporation  may request any data from qualified participants
which is necessary and required in developing, updating, and maintaining
the searchable database. Such qualified participants shall  provide  any
such information requested by the corporation.
6.  The  corporation  shall  prescribe  the form and manner in which a
state  agency  or  authority  awarding  other  state   agency   economic
development  benefits  shall submit information and data regarding other
state  agency  benefits  as  required  for  developing,  updating,   and
maintaining  the database and publish guidelines as needed to facilitate
receipt of such data to comply with  the  provisions  of  this  section,
including  the  submission  provisions included in subdivision 3 of this
section. The corporation, to the extent practicable, shall note  on  the
database where a state agency or authority failed to submit the required
data.
§  59.  The dormitory authority of the state of New York, the New York
state urban development corporation, and  the  New  York  state  thruway
authority  are  hereby  authorized  to issue bonds in one or more series
under either article 5-C or article 5-F of the state finance law for the
purpose of refunding obligations of the power authority of the state  of
New York to fund energy efficiency projects at state agencies including,
but not limited to, the state university of New York, city university of
New  York, the New York state office of general services, New York state
office of mental health, state education department, and New York  state
department of agriculture and markets. The aggregate principal amount of

bonds  authorized to be issued pursuant to this section shall not exceed
four hundred  seventy-five  million  dollars  ($475,000,000),  excluding
bonds  issued  to  pay  costs of issuance of such bonds and to refund or
otherwise repay such bonds. Such bonds issued by the dormitory authority
of  the  state  of  New  York,  the  New  York  state  urban development
corporation, and New York state thruway authority shall not be a debt of
the state, and the state shall not be liable thereon, nor shall they  be
payable  out  of  any  funds  other than those appropriated by the state
under  article  5-C  or  article  5-F  of  the  state  finance  law,  as
applicable.