Creates the coronavirus business interruption and municipal recovery program to provide grants through the empire state development corporation to businesses and municipalities which sustain economic losses as a result of the COVID-19 emergency; authorizes the issuance of bonds to fund the grants.
STATE OF NEW YORK
________________________________________________________________________
2028
2021-2022 Regular Sessions
IN SENATE
January 16, 2021
___________
Introduced by Sens. AKSHAR, BORRELLO, BOYLE, GALLIVAN, GRIFFO, HELMING,
JORDAN, LANZA, O'MARA, ORTT, RITCHIE, SERINO, TEDISCO -- read twice
and ordered printed, and when printed to be committed to the Committee
on Commerce, Economic Development and Small Business
AN ACT to create the coronavirus business interruption and municipal
recovery program to provide grants to businesses and municipalities
which sustain economic losses as a result of the COVID-19 emergency
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. There is hereby created the coronavirus business inter-
2 ruption and municipal recovery program.
3 1. Definitions. The following terms shall have the following meanings:
4 (a) The term "for profit business" shall mean any sole proprietorship,
5 partnership, limited liability company or corporation operating as a
6 business for profit in New York State.
7 (b) The term "not-for-profit corporation" shall mean any not-for-pro-
8 fit corporation operating or providing services in New York State.
9 (c) The term "authority" shall mean the urban development corporation,
10 operating as the empire state development corporation.
11 (d) The term "municipality" shall mean any county, city, town,
12 village, school district, fire district or special district.
13 (e) The term "direct economic loss" shall mean the amount of the
14 reduction of revenue or income sustained by a for profit business or
15 not-for-profit corporation, as a result of a coronavirus event, for any
16 month during the coronavirus period, as determined in accordance with
17 the private sector loss formula.
18 (f) The term "municipal loss" shall mean the amount of the reduction
19 of revenue, or increase in municipal expenses sustained by a munici-
20 pality, as a result of a coronavirus event, for any month during the
21 coronavirus period, as determined in accordance with the government
22 sector loss formula.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04364-01-1
S. 2028 2
1 (g) The term "coronavirus period" shall mean the period between Janu-
2 ary 1, 2020 through April 30, 2021.
3 (h) The term "coronavirus event" shall mean the suffering of a direct
4 economic loss or a municipal loss, as a direct result of:
5 i. The corona pandemic which occurred during January 1, 2020 through
6 April 30, 2021;
7 ii. The contraction of the coronavirus by any employee, officer,
8 director or contractor of the for profit business, not-for-profit corpo-
9 ration or municipality;
10 iii. A federal or state executive order;
11 iv. A federal or state statute;
12 v. A federal or state regulation; and/or
13 vi. A local law, ordinance or regulation.
14 (i) The term "private sector loss formula" shall mean the method of
15 determining a direct economic loss, during any month in the coronavirus
16 period, by calculating the total loss experience, that a for profit
17 business or a not-for-profit corporation has sustained in any month of
18 the coronavirus period, by comparing the total amount of revenue, or
19 total the amount of income, during a specific month in the coronavirus
20 period, as compared with the total amount of revenue, or the total
21 amount of income, in the same month during the period of January 1, 2019
22 through December 31, 2019, resulting in the amount of such direct
23 economic loss being the total amount of loss in revenue, or the total
24 amount of loss in income, reflected by such comparison for such month,
25 whichever is greater. For any for profit business not operating in any
26 part of 2019, the authority shall determine by actuarial principles what
27 the monthly loss would be.
28 (j) The term "government sector loss formula" shall mean the method of
29 determining a municipal loss, during any month in the coronavirus peri-
30 od, by calculating the total loss experience a municipality has
31 sustained, by comparing the total amount of revenue, during a specific
32 month in the coronavirus period, as compared with the average of the
33 total amount of revenue in the same month during the period of January
34 1, 2019 through December 31, 2019, and by further comparing the total
35 amount of expense, during a specific month in the coronavirus period, as
36 compared with the average of the total amount of expenses in the same
37 month during the period of January 1, 2019 through December 31, 2019,
38 resulting in the amount of such municipal loss being the total amount of
39 the loss in revenue plus the total amount of increased expenses,
40 reflected by the comparison for such month. In calculating the amount of
41 increased expenses in the governmental sector loss formula, the calcu-
42 lation shall reduce the amount of the increased expenses during the
43 coronavirus period by the percentage of increase in the municipality's
44 budget between the 2018 and 2019 fiscal years.
45 2. Grants to businesses. (a) Any for profit business or not-for-profit
46 corporation, that sustained a direct economic loss, shall be eligible to
47 apply for a grant under this subdivision.
48 (b) Grants under this subdivision shall be awarded by the authority,
49 in an amount of the direct economic loss sustained by the applicant, for
50 any month in the coronavirus period, as calculated by the authority in
51 accordance with the definition of private sector loss formula contained
52 in paragraph (i) of subdivision one of this section. The awards made
53 under this program would be the program of last resort and no amount
54 shall be awarded by the authority under a specific, individual grant
55 award, if such amount is otherwise covered or awarded to such applicant,
56 by any other federal, state or local recovery program, or by a policy of
S. 2028 3
1 business interruption insurance or other type of insurance purchased and
2 maintained by such applicant. No application may be made by an applicant
3 until two months have elapsed since the conclusion of the month for
4 which such application is submitted. An applicant may also receive only
5 one grant award for any specific, individual month within the coronavi-
6 rus period, but may receive a specific, individual grant award for each
7 and every month within the coronavirus period.
8 (c) The authority shall administer the grant program, and shall estab-
9 lish application procedures to accomplish the purposes of this act. The
10 authority shall further be empowered to contract for adjusters, actuar-
11 ies and any other personnel necessary to administer the program, and to
12 determine and award grants in accordance with this act. The authority
13 shall additionally hereby be authorized to issue bonds, notes or other
14 indebtedness to pay for the cost of the administration of this program
15 and to award and payout the grants issued under the program.
16 (d) No specific, individual, monthly grant awarded under this subdivi-
17 sion shall be in excess of $1,000,000.
18 (e) The authority shall determine the amount of any specific, individ-
19 ual, monthly award requested in accordance with the provisions of this
20 act, and shall pay any such applicant seeking such specific, individual,
21 monthly award, within 90 days of the date of the submission of the
22 application for such award. The authority shall further establish an
23 appeal procedure for all applicants that contend that the determination
24 of the award by the authority was not determined correctly or paid
25 promptly as required by this act.
26 3. Grants to municipalities. (a) Any municipality that sustained a
27 municipal loss, shall be eligible to apply for a grant under this subdi-
28 vision.
29 (b) Grants under this subdivision shall be awarded by the authority,
30 in an amount of the sustained municipal loss experienced by the appli-
31 cant, for any month in the coronavirus period, as calculated by the
32 authority in accordance with the definition of government sector loss
33 formula contained in paragraph (j) of subdivision one of this section.
34 The awards made under this program would be the program of last resort
35 and no amount shall be awarded by the authority under a specific, indi-
36 vidual grant award, if such amount is otherwise covered or awarded to
37 such applicant, by any other federal, state or local recovery program,
38 or by a policy of business interruption insurance or other type of
39 insurance purchased and maintained by such applicant. No application
40 may be made by an applicant until two months have elapsed since the
41 conclusion of the month for which such application is submitted. An
42 applicant may also receive only one grant award for any specific, indi-
43 vidual month within the coronavirus period, but may receive a specific,
44 individual grant award for each and every month within the coronavirus
45 period.
46 (c) The authority shall administer the grant program, and shall estab-
47 lish application procedures to accomplish the purposes of this act. The
48 authority shall further be empowered to contract for adjusters, actuar-
49 ies and any other personnel necessary to administer the program, and to
50 determine and award grants in accordance with this act. The authority,
51 shall additionally hereby be authorized to issue bonds, notes or other
52 indebtedness to pay for the cost of the administration of this program
53 and to award and payout the grants issued under the program.
54 (d) No specific, individual, monthly grant awarded under this subdivi-
55 sion shall be in excess of $3,000,000, except for a city with a popu-
56 lation of one million or more where any specific, individual, monthly
S. 2028 4
1 grant awarded under this subdivision shall not be in excess of
2 $10,000,000.
3 (e) The authority shall determine the amount of any specific, individ-
4 ual, monthly award requested, in accordance with the provisions of this
5 act, and shall pay any such applicant seeking such award, within 120
6 days of the date of the submission of the application for such specific,
7 individual, monthly award. The authority shall further establish an
8 appeal procedure for all applicants that contend that the determination
9 of the award by the authority was not determined correctly or paid
10 promptly as required by this act.
11 4. Recovery by the authority. The authority, through the attorney
12 general, may seek financial damages, by means of federal or state court
13 litigation, or by means of administrative procedure or arbitration,
14 against any foreign country, person, corporation, or any other personal
15 or legal entity, responsible for the initiation, outbreak, continuation,
16 distribution or infection of the COVID-19, coronavirus. No federal or
17 state court litigation, or administrative procedure or arbitration, may
18 be maintained for a recovery under this subdivision against any elected
19 official of the United States, New York State, or municipality, or of
20 any public officer appointed by any such officials, who during the peri-
21 od of January 1, 2020 through April 30, 2021, were discharging their
22 public duties. Any recovery obtained by the authority in accordance with
23 this subdivision shall be deposited into a COVID-19 recovery account,
24 opened and maintained by the authority, and shall be used to pay off and
25 retire any and all bonds, notes or other indebtedness issued by the
26 authority in accordance with the program under this act. Any amount of a
27 recovery obtained by the authority, above that necessary to pay off and
28 retire any and all bonds, notes or other indebtedness issued by the
29 authority in accordance with this program, shall be transferred to the
30 state general fund within two years of the date of the receipt of the
31 recovery.
32 § 2. This act shall take effect immediately.
