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New York 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.
          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).
    § 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 aliens 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  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 office or employment by reason of
  his acceptance of membership on such community advisory committee.
    (8)  The  governor  may  remove  any  director  appointed  by  him for
  inefficiency, neglect of duty or misconduct in office after giving him a
  copy of the charges against him, and an  opportunity  to  be  heard,  in
  person  or  by  counsel,  in  his  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 findings thereon, together with a
  complete record of the proceeding. The foregoing  provisions  shall  not
  apply  in  the case of the chairman 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, 2016
    (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.
    * The  empire  state  new  market corporation, a community development
  entity certified  by  the  United  States  Department  of  the  Treasury
  Community  Development  Financial  Institutions  Fund  and  a  corporate
  subsidiary of the corporation, by resolution,  may  direct  any  of  its
  directors,  officers,  or  employees to form limited liability companies
  pursuant to section 203 of the limited liability  company  law  for  the
  sole  purpose  of  certifying  and  performing  as community development
  entities that would be eligible to receive an allocation of tax  credits
  under  the  new markets tax credit program. No limited liability company
  formed pursuant to this section shall merge or consolidate. Each limited
  liability company shall act solely in relation to projects  selected  by
  the  corporation,  or  a  corporate  subsidiary of the corporation. Each
  limited liability company shall be empowered to receive an allocation of
  tax credits from a federal allocation to the corporation, or a corporate
  subsidiary of the corporation, under the new markets tax credit  program
  and  to  do  any other act or things incidental to or connected with the
  foregoing purposes or in advancement  thereof.  The  corporation,  or  a
  corporate subsidiary of the corporation, shall be the managing member of
  each   limited   liability   company  created  by  the  corporation.  In
  determining which projects to allocate tax  credits  to  under  the  new
  markets  tax  credit  program, the corporation shall prioritize projects
  demonstrating one or more  of  the  following  goals  or  benefits:  (a)
  creating or retaining jobs in low income communities; (b) increasing the
  provision of goods and services for low income community residents which
  would  otherwise  not  be  available  at  the same price or quality; (c)
  supporting  minority  and  women-owned  or  controlled  businesses;  (d)
  expanding  housing  opportunities  for low income community persons; (e)
  supporting environmentally  sustainable  outcomes;  and  (f)  supporting
  efforts  that  otherwise  benefit  low  income  community  residents  by
  leveraging further investment in their  communities.  Provided  further,
  such  projects  shall  be  limited  to projects that would be authorized
  under this act and shall be subject to approval  by  the  board  of  the
  urban development corporation. The corporation shall publish information
  regarding the process used to select projects to receive the new markets
  tax credits and provide a copy to the temporary president of the senate,
  the  speaker  of the assembly, the minority leader of the senate and the
  minority leader of  the  assembly.  The  corporation  shall  strive  for
  regional  diversity  in  the  allocation  of  tax  credits under the new
  markets tax  credit  program.  The  corporation  shall  include  in  the
  information  required  to  be  submitted annually in accordance with the
  provisions of subdivision 1 of section 2800 of  the  public  authorities
  law  information  regarding  assistance provided by it or its subsidiary
  under the new markets tax credit program, and  shall  provide  financial
  information  with respect to any subsidiary administering the program in
  the corporation's financial reports,  including  its  certified  audited
  financial statements.
    * NB Repealed March 31, 2016
    (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.
    (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. 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.
    (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  debt  or  equity  invested in an enterprise or
  project.
    (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; and
    (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.
    (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.
    (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.
    (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.
    (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.
    (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.

    § 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.
    (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; 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.
    §  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.
    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, 2016.
    * NB Expires July 1, 2016
    * §  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,  size
  and purpose 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.
    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  both  residential and
  commercial real properties. Such properties shall be  selected  for  the
  purpose of revitalizing urban centers, encouraging commercial investment
  and adding value to the municipal housing stock. 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 twenty 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. Real property in need of
  rehabilitation  or  reconstruction  on  the property assessment list may
  receive grants of up to one hundred  thousand  dollars  per  residential
  real   property.   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 empire zone development plans pursuant
  to article 18-B 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.
    * 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 commingle the monies of such
  fund with any other monies of the corporation  or  any  monies  held  in
  trust   by  the  corporation.  The  corporation  is  authorized,  within
  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, 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.
    2. In order for a lending  organization  to  be  eligible  to  receive
  program  funds, it must have established sufficient expertise to analyze
  small  business   applications   for   program   loans,   evaluate   the
  creditworthiness  of  small  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
  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.
    3. Program loans to small businesses shall be targeted and marketed to
  minority and women-owned enterprises and other small businesses that are
  having difficulty accessing traditional credit markets. Program loans to
  small  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: 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 and other small 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.
    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;  a  description of the economic
  development generated; the status of each outstanding program loan;  and
  such other information as the corporation may require.
    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 five New York state incubator hot
  spots in fiscal year two thousand  thirteen-two  thousand  fourteen  and
  five  additional  New York state innovation hot spots in fiscal year two
  thousand fourteen-two thousand fifteen. 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.
    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 overhead, indirect costs, or facilities
  and administration charges of such sponsor.
    6.  Other  assistance.  The  corporation  shall  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. Under no
  circumstance may business enterprises of incubators  designated  as  New
  York  state  incubators  under  paragraph (b) of subdivision one of this
  section be eligible for tax benefits under section thirty-eight  of  the
  tax law.
    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 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

    * NB Effective until January 1, 2018
    * (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
    * NB Effective January 1, 2018
    (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:
    (a) 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.
    (b) farms of one hundred fifty acres or less.
    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.
    § 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, a project at nano
  Utica, onondaga county revitalization  projects,  Binghamton  university
  school of pharmacy, New York power electronics manufacturing consortium,
  regional  infrastructure projects, 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 two billion eight
  hundred eighty-eight million two hundred fifty-seven  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 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, a project at  nano
  Utica,  onondaga  county  revitalization projects, Binghamton university
  school of pharmacy, New York power electronics manufacturing consortium,
  regional infrastructure projects 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 $440,000,000, 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  two hundred
  sixty-nine million one hundred forty 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  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 one billion one hundred fifty-five 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 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
  special  act school districts, state-supported schools for the blind and
  deaf and approved private special education  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  five 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 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.
    * NB Effective upon  the  "smart  schools  bond  act  of  2014"  being
  submitted  to  the  people  at a general election to be held in November
  2014 and approved by a majority of all votes cast. If  approval  is  not
  obatined, this subdivision shall expire and be deemed repealed.
    * 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,
  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.
    * NB  Effective  upon  the  "smart  schools  bond  act  of 2014" being
  submitted to the people at a general election to  be  held  in  November

  2014  and  approved  by a majority of all votes cast. If approval is not
  obatined, this subdivision shall expire and be deemed repealed.
    3.  Subdivisions 1 and 2 of this section shall take effect only in the
  event that a chapter of the laws of 2014, enacting  the  "smart  schools
  bond act of 2014", is submitted to the people at the general election to
  be held in November 2014 and is approved by a majority of all votes cast
  for  and against it at such election. Upon such approval, subdivisions 1
  and 2 of this section shall take effect immediately. If such approval is
  not obtained, subdivisions 1 and 2 of this section shall expire  and  be
  deemed repealed.
    §  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 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  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.

  
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Last modified: September 11, 2016