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A02819 Summary:

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A02819 Floor Votes:

A02819 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2819
 
                               2009-2010 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 21, 2009
                                       ___________
 
        Introduced  by  M. of A. SCHIMMINGER, V. LOPEZ, HOOPER, MORELLE, GREENE,
          MILLMAN, CANESTRARI, DelMONTE, SCHROEDER, COLTON -- Multi-Sponsored by
          -- M. of A. CAHILL, DESTITO,  FARRELL,  JOHN,  KOON,  MARKEY,  PAULIN,
          PERRY,  PHEFFER -- read once and referred to the Committee on Ways and
          Means
 

        AN ACT to amend the state finance law, in relation to including eligible
          businesses located in certain areas designated pursuant to the federal
          Community Renewal Tax Relief Act of  2000  in  the  state's  Excelsior
          Linked Deposit Act loan 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
     2  four new subdivisions 12-a, 12-b, 22 and 23 to read as follows:
     3    12-a.  "Empowerment zone" means an area within the state that has been
     4  designated by such term pursuant to section 1391 of the federal Internal
     5  Revenue Code (26 United States Code § 1391) under the federal  Community
     6  Renewal Tax Relief Act of 2000.

     7    12-b.  "Enterprise  community" means an area within the state that has
     8  been designated by such term pursuant to section  1391  of  the  federal
     9  Internal  Revenue  Code (26 United States Code § 1391) under the federal
    10  Community Renewal Tax Relief Act of 2000.
    11    22. "Renewal community" means an area within the state that  has  been
    12  designated  by such term in accordance with section 1400E of the federal
    13  Internal Revenue Code (26 United States Code § 1400E) under the  federal
    14  Community Renewal Tax Relief Act of 2000.
    15    23.  "Renewal  community business" means a business that is designated
    16  by such term pursuant to section 1400G of the federal  Internal  Revenue
    17  Code (26 United States Code § 1400G) under the federal Community Renewal

    18  Tax Relief Act of 2000.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03969-01-9
        A. 2819                             2
 
     1    § 2. Subdivision 11 of section 213 of the state finance law is amended
     2  by  adding  three  new  paragraphs  (b-1),  (b-2)  and  (b-3) to read as
     3  follows:
     4    (b-1)  during  the  whole  or any portion of a period in which an area
     5  continues to be designated as a renewal community, any renewal community
     6  business located in such area that employs one hundred or fewer  employ-
     7  ees within the state on a full-time basis; or

     8    (b-2)  during  the  whole  or any portion of a period in which an area
     9  continues to be designated as an empowerment zone, any business  located
    10  in  such  area  that  employs  one hundred or fewer employees within the
    11  state on a full-time basis; or
    12    (b-3) during the whole or any portion of a period  in  which  an  area
    13  continues  to  be  designated  as  an enterprise community, any business
    14  located in such area that employs one hundred or fewer employees  within
    15  the state on a full-time basis; or
    16    §  3.  Paragraph  (c)  of  subdivision  12 of section 213 of the state
    17  finance law, as added by chapter 705 of the laws of 1993 and as  further
    18  amended  pursuant  to section 15 of part GG of chapter 63 of the laws of
    19  2000, is amended to read as follows:

    20    (c) for certified businesses located in empire zones, [and] for retail
    21  businesses located in highly distressed areas, for  eligible  businesses
    22  that  are  defined  in  paragraph  (b-1)  of  subdivision eleven of this
    23  section that are located in a renewal community, for eligible businesses
    24  that are defined in  paragraph  (b-2)  of  subdivision  eleven  of  this
    25  section  that are located in an empowerment zone, and for eligible busi-
    26  nesses that are defined in paragraph (b-3) of subdivision eleven of this
    27  section that are located in an enterprise community, projects that  will
    28  create  or  retain  full-time,  permanent jobs within the empire zone or
    29  empowerment zone or enterprise community or highly  distressed  area  or

    30  renewal community, as the case may be; or
    31    §  4.  Paragraph  (a)  of  subdivision  16 of section 213 of the state
    32  finance law, as amended by chapter 291 of the laws of 2004,  is  amended
    33  to read as follows:
    34    (a)  for  a  linked deposit made in connection with a linked loan to a
    35  certified business in an empire zone or to an eligible business  located
    36  in  a  highly distressed area or to an eligible business that is defined
    37  in paragraph (b-1) of subdivision eleven of this section that is located
    38  in a renewal community or defined in paragraph (b-2) of such subdivision
    39  that is located in an empowerment zone or defined in paragraph (b-3)  of
    40  such subdivision that is located in an enterprise community, respective-
    41  ly  for eligible projects defined in paragraph (c) of subdivision twelve

    42  of this section or a certified minority- or women-owned business  enter-
    43  prise  for  an  eligible project defined in paragraph (e) of subdivision
    44  twelve of this section or to  a  defense  industry  manufacturer  for  a
    45  project  defined in paragraph (d) of subdivision twelve of this section,
    46  a fixed rate of interest which is three hundred basis points  below  the
    47  lender's  posted four year certificate of deposit rate or, if the lender
    48  does not offer a four year certificate  of  deposit,  is  three  hundred
    49  basis points below the average statewide rate for four year certificates
    50  of deposit as determined by the commissioner of economic development;
    51    §  5.  Subdivision 1 of section 218 of the state finance law, as added
    52  by chapter 705 of the laws of 1993 and as further  amended  pursuant  to
    53  section  15  of part GG of chapter 63 of the laws of 2000, is amended to

    54  read as follows:
    55    1. Linked loans made to certified businesses in  empire  zones  or  to
    56  eligible businesses in highly distressed areas or to eligible businesses
        A. 2819                             3
 
     1  that are defined in paragraph (b-1) of subdivision eleven of section two
     2  hundred thirteen of this article that are located in a renewal community
     3  or defined in paragraph (b-2) of such subdivision that are located in an
     4  empowerment  zone or defined in paragraph (b-3) of such subdivision that
     5  are located  in  an  enterprise  community,  respectively  for  eligible
     6  projects  defined  in paragraph (c) of subdivision twelve of section two
     7  hundred thirteen of this article or to [minority]  minority-  or  women-

     8  owned  business enterprises for an eligible project defined in paragraph
     9  (e) of subdivision twelve of section two hundred thirteen of this  arti-
    10  cle or to a defense industry manufacturer for a project defined in para-
    11  graph  (d) of subdivision twelve of section two hundred thirteen of this
    12  article shall bear interest at a fixed rate equal  to  three  percentage
    13  points  below  the fixed interest rate the lender would have charged for
    14  the loan in the absence of a linked deposit based on  its  usual  credit
    15  considerations.  All  other  linked loans shall bear interest at a fixed
    16  rate equal to two percentage points below the fixed  interest  rate  the
    17  lender would have charged for the loan in the absence of a linked depos-
    18  it  based  on its usual credit considerations.  Lenders shall certify to
    19  the commissioner of economic development that the rate to be charged  on

    20  a  linked  loan  is two percentage points or three percentage points, as
    21  the case may be, below the interest rate the lender would  have  charged
    22  for the loan in the absence of a linked deposit.
    23    § 6. This act shall take effect immediately.