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A07728 Summary:

BILL NOA07728A
 
SAME ASSAME AS S07068-A
 
SPONSORStern
 
COSPNSRBronson, Stirpe, Barron, Griffin, Santabarbara, Brabenec
 
MLTSPNSR
 
Amd 213, 218 & 220, St Fin L
 
Provides for no interest rate for certain linked loans for certified service-disabled veteran-owned business enterprises, projects to provide financing necessary to carry out a procurement contract with an agency or authority or other entity of the state or federal government; defines "certified service-disabled veteran-owned business enterprise" means any service-disabled veteran-owned business enterprise as provided for in section 369-H of the executive law and certified pursuant to section 369-I of the executive law; makes related provisions.
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A07728 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7728--A
                                                                Cal. No. 273
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 20, 2021
                                       ___________
 
        Introduced  by M. of A. STERN, BRONSON, STIRPE, GRIFFIN, SANTABARBARA --
          read once and referred to the Committee  on  Economic  Development  --
          ordered  to  a third reading, amended and ordered reprinted, retaining
          its place on the order of third reading

        AN ACT to amend the state finance law,  in  relation  to  the  excelsior
          linked deposit program
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 213 of the state finance law is amended by adding a
     2  new subdivision 25 to read as follows:
     3    25. "Certified  service-disabled  veteran-owned  business  enterprise"
     4  means any service-disabled veteran-owned business enterprise as provided
     5  for  in  section  three  hundred  sixty-nine-h  of the executive law and
     6  certified pursuant to section three hundred sixty-nine-i of  the  execu-
     7  tive law.
     8    §  2.  Paragraphs  (f) and (g) of subdivision 11 of section 213 of the
     9  state finance law, paragraph (f) as added by chapter 705 of the laws  of
    10  1993 and paragraph (g) as added by section 1 of part HH of chapter 59 of
    11  the  laws  of 2013, are amended and a new paragraph (h) is added to read
    12  as follows:
    13    (f) any service business that is independently owned and operated,  is
    14  not  dominant  in  its  field, employs one hundred or fewer persons on a
    15  full-time basis within the state, and is seeking financing  through  the
    16  program  for  a project that will result in the retention or creation of
    17  permanent private sector jobs within the state, other  than  a  business
    18  that  sells a service rendered at a facility personally by an individual
    19  for another individual, directly, without the intervention  of  a  third
    20  party,  or  a  professional  service  business  such  as  health, legal,
    21  accounting, engineering, or architectural services[.]; or
    22    (g) a qualifying technology  or  innovation  business  which  business
    23  employs  one  hundred or fewer employees within the state on a full-time
    24  basis and engages in:
    25    (1) biotechnologies, which shall be defined as technologies  involving
    26  the  scientific  manipulation  of  living  organisms,  especially at the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11424-02-1

        A. 7728--A                          2
 
     1  molecular and/or the sub-molecular genetic level,  to  produce  products
     2  conducive  to  improving  the  lives  and health of plants, animals, and
     3  humans; and the associated scientific research, pharmacological, mechan-
     4  ical,  and  computational applications and services connected with these
     5  improvements;
     6    (2) information and communication technologies, equipment and  systems
     7  that  involve  advanced  computer  software  and hardware, visualization
     8  technologies, and human interface technologies;
     9    (3) advanced materials and processing technologies  that  involve  the
    10  development,  modification,  or  improvement of one or more materials or
    11  methods to produce devices  and  structures  with  improved  performance
    12  characteristics  or special functional attributes, or to activate, speed
    13  up, or otherwise alter chemical, biochemical, or medical processes;
    14    (4) electronic and photonic devices and components for use in  produc-
    15  ing  electronic,  optoelectronic,  mechanical  equipment and products of
    16  electronic distribution with interactive media content;
    17    (5) energy efficiency, renewable energy  and  environmental  technolo-
    18  gies, products, devices and services; or
    19    (6) small scale systems integration and packaging[.]; or
    20    (h)  any certified service-disabled veteran-owned business enterprises
    21  seeking financing necessary to  carry   out   a   procurement   contract
    22  with   an   agency  or authority or other entity of the state or federal
    23  government.
    24    § 3. Paragraph (e) of subdivision 12  of  section  213  of  the  state
    25  finance law, as added by chapter 705 of the laws of 1993, is amended and
    26  a new paragraph (f) is added to read as follows:
    27    (e)  for  certified  minority-and  women-owned businesses, projects to
    28  provide financing necessary to carry out a procurement contract with  an
    29  agency  or  authority  or  other  entity of the state or federal govern-
    30  ment[.]; or
    31    (f) for certified service-disabled veteran-owned business enterprises,
    32  projects to provide financing  necessary  to  carry  out  a  procurement
    33  contract  with  an  agency  or authority or other entity of the state or
    34  federal government.
    35    § 4. Subdivision 1 of section 218 of the state finance law, as amended
    36  by section 1 of part U of chapter 58 of the laws of 2012, is amended  to
    37  read as follows:
    38    1.  Linked  loans  made  to certified businesses in empire zones or to
    39  eligible businesses in highly distressed areas or to eligible businesses
    40  that are defined in paragraph (b-1) of subdivision eleven of section two
    41  hundred thirteen of this article that are located in a renewal community
    42  or defined in paragraph (b-2) of such subdivision that are located in an
    43  empowerment zone or defined in paragraph (b-3) of such subdivision  that
    44  are  located  in  an  enterprise  community,  respectively  for eligible
    45  projects defined in paragraph (c) of subdivision twelve of  section  two
    46  hundred  thirteen  of  this article or to service-disabled veteran-owned
    47  business enterprises for an eligible project defined in paragraph (f) of
    48  subdivision twelve of section two hundred thirteen of this article or to
    49  minority- or women-owned business enterprises for  an  eligible  project
    50  defined  in  paragraph  (e) of subdivision twelve of section two hundred
    51  thirteen of this article or to a defense  industry  manufacturer  for  a
    52  project  defined  in  paragraph (d) of subdivision twelve of section two
    53  hundred thirteen of this article or to an eligible business pursuant  to
    54  paragraph  (a)  of subdivision eleven of section two hundred thirteen of
    55  this article that  produces  products  defined  in  subdivision  two  of
    56  section  three  hundred  one  of  the agriculture and markets law for an

        A. 7728--A                          3
 
     1  eligible project as defined in paragraph (b) of  subdivision  twelve  of
     2  section  two  hundred  thirteen of this article shall bear interest at a
     3  fixed rate equal to three percentage points  below  the  fixed  interest
     4  rate  the  lender  would  have  charged for the loan in the absence of a
     5  linked deposit based on its usual  credit  considerations.    All  other
     6  linked loans shall bear interest at a fixed rate equal to two percentage
     7  points  below  the fixed interest rate the lender would have charged for
     8  the loan in the absence of a linked deposit based on  its  usual  credit
     9  considerations.  Lenders  shall  certify to the commissioner of economic
    10  development that the rate to be charged on a linked loan is two percent-
    11  age points or three percentage points, as the case  may  be,  below  the
    12  interest  rate the lender would have charged for the loan in the absence
    13  of a linked deposit.
    14    § 5. Section 220 of the state finance law, as added by  section  2  of
    15  part H of chapter 60 of the laws of 2011, is amended to read as follows:
    16    § 220. Renewal of linked deposit. A lender may, on behalf of a borrow-
    17  er,  apply  to  the  commissioner  of  economic development to request a
    18  renewal of the linked deposit for an  additional  four  year  period  to
    19  correspond  with  a second four year period of a borrower's linked loan.
    20  The commissioner may grant such application if the  commissioner  deter-
    21  mines  that  the  borrower,  during  the  second four year period of the
    22  linked loan, will create additional industrial modernization benefits or
    23  additional export trade benefits or additional jobs. If the commissioner
    24  of economic development grants such application, the commissioner  shall
    25  notify  the  authorized  depositor  who made the linked deposit that the
    26  commissioner has determined that the application satisfies the  require-
    27  ments  of  this  article  and  shall request the authorized depositor to
    28  continue the linked deposit with the lender for an additional four  year
    29  period  in  accordance  with  section ninety-eight-a of this chapter and
    30  with the authorized  depositor's  established  procedures.  Such  linked
    31  deposit  shall  continue to be secured in accordance with the provisions
    32  of section one hundred five of this chapter. The fixed interest rate  on
    33  the  continued  linked deposit shall be the linked deposit interest rate
    34  in effect on the first day of the continuation of  the  linked  deposit.
    35  The  authorized  depositor  and  the  lender  shall enter into a written
    36  deposit agreement governing the continuation of the linked deposit.  The
    37  interest rate payable on the linked loan for the second four year period
    38  shall be, in the case of a certified business in an economic development
    39  zone  or an eligible business located in an economically distressed area
    40  or federal empowerment zone or enterprise  or  renewal  community  or  a
    41  minority  or  women-owned business enterprise or service-disabled veter-
    42  an-owned business enterprises, three percentage points below the  inter-
    43  est  rate  the  lender  would have charged for the loan in effect on the
    44  first day of the continuation of the linked deposit; or in the case of a
    45  business not located in an economic  development  zone  or  economically
    46  distressed  area  or  federal  empowerment zone or enterprise or renewal
    47  community or which is not a minority or women-owned business enterprise,
    48  service-disabled  veteran-owned  business  enterprises,  two  percentage
    49  points  below  the  interest  rate the lender would have charged for the
    50  loan in the absence of a linked deposit in effect on the  first  day  of
    51  the continuation of the linked deposit.
    52    § 6. This act shall take effect immediately.
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