2016 New York Laws
UDA - Urban Development Corporation Act 174/68

Chapter 174 of the laws of 1968
  Section  1.     Short title.
           2.     Statement of legislative findings and purposes.
           3.     Definitions.
           4.     New York state urban development corporation.
           5.     Powers of the corporation.
           6.     Sale or lease of land use improvement projects.
          *6-a.   Sale or lease of infrastructure projects.
                    * NB Not implemented due to defeat of the Jobs for the
                    new, New York bond act in November, 1992
           7.     Sale or lease of residential projects.
           8.     Sale or lease of industrial projects.
           9.     Sale or lease of civic projects.
           9-a.   Financial assistance for small and medium-sized business
                    assistance projects.
           9-b.
           9-c.   Rules and regulations.
           9-d.   Reports and evaluation.
           9-e.   Creating  a Puerto Rican and Latino business development
                    center.
           9-f.   Special assistance for small and medium-sized businesses
                    which  are  adversely  affected  by  the  absence   of
                    eligible  reservists  ordered  to active duty with the
                    armed forces.
          10.     Findings of the corporation.
          11.     Construction contracts.
          12.     Subsidiaries: how created.
          13.     Acquisition of real property.
          13-a.   Conveyance of state lands.
          14.     Acquisition of real property from a municipality  or  an
                    urban renewal agency.
          15.     Special provisions relating to residential projects.
          16.     Cooperation with municipalities.
          16-a.   Regional revolving loan trust fund.
          16-b.   Job  retention and defense industry working capital loan
                    program.
          16-c.   Minority-  and  women-owned  business  development   and
                    lending program.
          16-d.   Urban and community development program.
          16-e.   Regional economic development partnership program.
          16-f.   Bonding guarantee assistance program.
          16-g.   Child care facilities construction program.
          16-h.   The JOBS Now program is hereby created.
          16-i.   The empire state economic development fund.
          16-j.   Strategic training alliance program.
          16-k.   Capital access program.
          16-l.   Rural revitalization program.
          16-m.   The empire state economic development fund.
          16-n.   Restore New York's Communities Initiative.
          16-n*2. Collection  of  payments  in  lieu  of taxes pursuant to
                    leases with respect to  parcels  within  the  Brooklyn
                    bridge park civic project.
          16-o.   The   community   development   financial   institutions
                    program.
          16-p.   The investment opportunity fund.
          16-q.   The upstate regional blueprint fund.
          16-r.   The downstate revitalization fund.

          16-s.   The upstate agricultural economic development  fund  and
                    healthy food / healthy communities initiative.
          16-t.   Small business revolving loan fund.
          16-u.   Innovate NY fund.
          16-v.   New  York  state  business  incubator and innovation hot
                    spot support act.
          16-w.   Beginning farmers NY fund.
          16-x.   Dairy promotion act.
          16-y.   Marketing of agricultural products.
          16-z.   Marketing orders.
          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, 2017
    (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, 2021
    (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, 2017.
    * NB Expires July 1, 2017
    * §  16-n.  Restore New York's Communities Initiative. 1. Definitions.
  (a) For the purposes of this section  "deconstruction"  shall  mean  the
  careful   disassembly   of   buildings   of  architectural  or  historic
  significance with the intent to rehabilitate, reconstruct  the  building
  or salvage the material disassembled from the building;
    (b)  For  the purposes of this section "reconstruction" shall mean the
  construction of a new building which is similar in architecture and size
  to a previously existing building at such location.
    (c) For the purposes  of  this  section  "rehabilitation"  shall  mean
  structural  repairs,  mechanical  systems repair or replacement, repairs
  related to deferred maintenance, emergency  repairs,  energy  efficiency
  upgrades,  accessibility  improvements,  mitigation  of lead based paint
  hazards, and other repairs which result in a significant improvement  to
  the property.
    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,  and  micro-businesses  located  within New York state, that
  generate economic growth and job creation within New York state but that
  are unable to obtain adequate credit or adequate terms for such  credit.
  If  in  the  discretion  of  the  corporation  the  use  of  a community
  development financial institution is  not  practicable  based  upon  the

  application  of  rules  and  regulations  developed  by the corporation,
  including,  but  not  limited  to,   assessments   of   geographic   and
  administrative  capacity,  then  the  corporation  is authorized, within
  available appropriations, to provide low interest loans to the following
  other  local  community  based  lending  organizations:  small  business
  lending consortia, certified development companies, providers of  United
  States  department  of  agriculture  business  and industrial guaranteed
  loans, United  States  small  business  administration  loan  providers,
  credit  unions  and  community  banks.  As  used  in this section "small
  business"  means  a  business  that  is  resident  in  New  York  state,
  independently owned and operated, not dominant in its field, and employs
  one  hundred  or fewer persons. As used in this section "micro-business"
  means a business that is resident in New York state, independently owned
  and operated, and employs less than five people.
    2. In order for a lending  organization  to  be  eligible  to  receive
  program  funds, it must have established sufficient expertise to analyze
  small business and  micro-businesses  applications  for  program  loans,
  evaluate  the creditworthiness of small businesses, and micro-businesses
  and regularly monitor program  loans.  The  lending  organization  shall
  review every program loan application in order to determine, among other
  things,  the  feasibility of the proposed use of the requested financing
  by the small business or micro-business  applicant,  the  likelihood  of
  repayment  and  the  potential  that  the  loan  will  generate economic
  development and jobs  within  New  York  state.  The  corporation  shall
  identify  eligible lending organizations through one or more competitive
  statewide or local solicitations. The corporation shall show  preference
  in   awarding   program   funds   to  lending  organizations  who  serve
  micro-businesses and micro-loans.
    3. Program loans to small businesses  and  micro-businesses  shall  be
  targeted  and marketed to minority and women-owned enterprises and other
  small  businesses  and  micro-businesses  that  are  having   difficulty
  accessing  traditional credit markets. Program loans to small businesses
  and micro-businesses shall be used for the  creation  and  retention  of
  jobs, as defined by the corporation, including: (a) working capital; (b)
  the acquisition and/or improvement of real property; (c) the acquisition
  of  machinery  and  equipment,  property  or  improvement;  or  (d)  the
  refinancing of debt obligations. There shall be two categories of  loans
  to small businesses and micro-businesses: a micro loan that shall have a
  principal  amount  that  is less than twenty-five thousand dollars and a
  regular  loan  that  shall  have  a  principal  amount  not  less   than
  twenty-five  thousand  dollars.  Prior  to  receiving program funds, the
  lending organization must certify to  the  corporation  that  such  loan
  complies with this section and rules and regulations promulgated for the
  program  and that the lending organization has performed its obligations
  pursuant to and is in compliance with this section,  the  program  rules
  and  regulations and all agreements entered into between the corporation
  and the lending organization. The  program  funds  amount  used  by  the
  lending  organization to fund a program applicant loan shall not be more
  than fifty percent of the principal amount of  such  loan.  The  program
  funds  amount  used  by  the  lending  organization  to  fund  a program
  applicant loan shall not be greater than  one  hundred  and  twenty-five
  thousand  dollars.  Minority-  and  women-owned business enterprises and
  other small businesses or micro-businesses who access such program loans
  under this subdivision  shall  not  be  precluded  from  accessing  such
  short-term  financing  loans  provided  under subdivision eleven of this
  section.
    4. Program funds shall not be used for: (a) projects that would result
  in the relocation of any business operation from one municipality within

  the state to another, except under one of the following conditions:  (i)
  when a business is relocating within a municipality with a population of
  at  least  one  million  where  the  governing body of such municipality
  approves such relocation; or (ii) the lending organization notifies each
  municipality  from  which  such business operation will be relocated and
  each municipality agrees to such relocation; (b) projects of newspapers,
  broadcasting  or  other  news  media;  medical  facilities,   libraries,
  community  or  civic centers; or public infrastructure improvements; and
  (c) providing funds, directly or indirectly, for payment,  distribution,
  or  as  a  loan,  to  owners,  members,  partners or shareholders of the
  applicant business, except as ordinary income for services rendered.
    5. With respect to its program loans,  the  lending  organization  may
  charge  application,  commitment  and  loan guarantee fees pursuant to a
  schedule of fees adopted by the lending organization and approved by the
  corporation. Approved micro-loans for  five  thousand  dollars  or  less
  shall have applications fees waived.
    6.  Program  funds shall be disbursed to a lending organization by the
  corporation in the form of a loan to the lending organization. The  term
  of the loan shall commence upon disbursement of the program funds by the
  corporation  to  the  lending  organization.  The loan shall carry a low
  interest rate determined by the corporation  based  on  then  prevailing
  interest  rates  and  the  circumstances  of  the  lending organization.
  Notwithstanding the  performance  of  the  loans  made  by  the  lending
  organization  using program funds, the lending organization shall remain
  liable to the corporation with respect to any unpaid  amounts  due  from
  the  lending  organization  pursuant  to  the terms of the corporation's
  loans to the lending organization. In addition,  a  portion  of  program
  funds  may be disbursed to a lending organization in the form of a grant
  or forgivable loan,  provided  those  funds  are  used  by  the  lending
  organization  for  administrative  expenses  associated  with  the fund,
  loan-loss reserves, or other eligible  expenses  as  determined  by  the
  corporation.
    7.  Notwithstanding  anything  to  the  contrary  in this section, the
  corporation shall provide at least  five  hundred  thousand  dollars  in
  program  funds pursuant to this section to lending organizations for the
  purpose of making loans to small business located in Niagara county.
    8. Notwithstanding anything to  the  contrary  in  this  section,  the
  corporation  shall  provide  at  least  five hundred thousand dollars in
  program funds pursuant to this section to lending organizations for  the
  purpose  of  making  loans  to  small  business  located in St. Lawrence
  county.
    9. Notwithstanding anything to  the  contrary  in  this  section,  the
  corporation  shall  provide  at  least  five hundred thousand dollars in
  program funds pursuant to this section to lending organizations for  the
  purpose of making loans to small business located in Erie county.
    10.  Notwithstanding  anything  to  the  contrary in this section, the
  corporation shall provide at least  five  hundred  thousand  dollars  in
  program  funds pursuant to this section to lending organizations for the
  purpose of making loans to small business located in Jefferson county.
    11. Notwithstanding anything to the  contrary  in  this  section,  the
  corporation  may  provide  at  least  five  hundred  thousand dollars in
  program funds pursuant to this section to lending organizations for  the
  purpose  of  making  short-term  financing  available  to  minority- and
  women-owned business enterprises and other small  businesses  performing
  contracts  to  provide  construction  or professional services for state
  procurement purposes. Such loans shall be used to underwrite the cost of
  labor,  materials,  and  equipment  directly  associated  with  (1)  the
  contract  being  financed  or (2) a contract that has been satisfied for

  which the business is awaiting payment from the state. The program funds
  amount used by the lending organization to fund a program applicant loan
  shall not be more than eighty percent of the principal  amount  of  such
  loan.  The program funds amount used by the lending organization to fund
  a  program  applicant  loan  shall  not  be  greater  than  one  hundred
  twenty-five   thousand   dollars.  Minority-  and  women-owned  business
  enterprises and  other  small  businesses  who  access  such  short-term
  financing  loans  under  this  subdivision  shall  not be precluded from
  accessing such program loans provided under subdivision  three  of  this
  section.
    12.  Notwithstanding  any  provision  of  law  to  the  contrary,  the
  corporation may establish a program fund for program use  and  pay  into
  such  fund  any  funds available to the corporation from any source that
  are eligible for program  use,  including  moneys  appropriated  by  the
  state.
    13. With respect to a lending organization program loan applicants, no
  person  who  is  a member of the board or other governing body, officer,
  employee, or member of a loan committee, or a family member of any  such
  lending   organization   shall  participate  in  any  decision  on  such
  application if such person is a party to or has a financial or  personal
  interest  in  such  loan.  Any  person  who cannot participate in a loan
  application decision for such reasons shall not be counted as  a  member
  of  the  loan  committee,  board or other governing body for purposes of
  determining  the  number  of  members  required  for  approval  of  such
  application.
    14.  The  lending  organization shall submit to the corporation annual
  reports stating: the number of program loans made; the amount of program
  funding used for loans; the use of loan proceeds by  the  borrower;  the
  number  of  jobs  created  or  retained;  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,  farmers
  who  have  not  produced an "agricultural product" as defined by section
  three hundred twenty-eight of the agriculture and markets law, for  more

  than  ten  consecutive  years, and who will materially and substantially
  participate in the production of an agricultural product within a region
  of the state.
    3. Appropriations to the beginning farmers NY fund may be used for the
  following purposes:
    (a)   to  assist  farmers  in  demonstrating  innovative  agricultural
  techniques including, but not limited to, organic farming and  specialty
  crops.
    (b)  capital grants in accordance with a business plan to improve farm
  profitability. Upon completion of such business plan,  recipients  shall
  be  eligible  for capital grants to enhance the profitability of farming
  operations. Such grants may be used  for  purposes  including,  but  not
  limited to, the purchase of machinery or the construction or improvement
  of  physical  structures.  Any  capital  grant  shall  be  issued with a
  one-to-one match between the state and recipient.
    4. The corporation shall  establish  a  competitive  process  for  the
  evaluation  of  applicants  for  the  beginning  farmers  NY  fund. When
  awarding funds pursuant to this section, the  corporation  shall  ensure
  that  applicants  meet  the  criteria and requirements determined by the
  corporation pursuant to this section.
    5. The beginning farmers NY fund shall not invest  an  amount  in  any
  single  beneficiary  that exceeds fifty thousand dollars, subject to any
  exceptions to be established by guidelines of the corporation.
    6.  Notwithstanding  any  provision  of  law  to  the  contrary,   the
  corporation  may  establish  a program fund for program use and pay into
  such fund any eligible funds  available  to  the  corporation  from  any
  source, including moneys appropriated by the state.
    7.  The  corporation  shall  submit  a  report  annually  on  December
  thirty-first to the director of the budget, the temporary  president  of
  the  senate,  the  speaker  of  the assembly, the minority leader of the
  senate and the minority leader of the assembly detailing (a)  the  total
  amount  of  funds  committed to each applicant; (b) the location of each
  applicant; and (c) such  other  information  as  the  corporation  deems
  necessary.
    8.  The  corporation  is hereby authorized to establish guidelines for
  the administration of the program, including application procedures  and
  disbursement  terms,  and to provide for the repayment of funds received
  by the beneficiary if the beneficiary leaves New York state or otherwise
  ceases farming activity within a period of time to be established by the
  corporation.
    * § 16-x. Dairy promotion act. 1. Declaration of  policy.  (a)  It  is
  hereby  declared  that  the  mission  of the corporation is to promote a
  vigorous and growing state economy. In implementing  this  mission,  the
  corporation  has  undertaken  a  vigorous campaign to market the state's
  assets and, by carrying  out  the  provisions  of  this  section,  would
  further this mission by promoting the state's dairy industry.
    (b)  It  is further declared that the continued existence of the state
  dairy industry, and the continued production of milk  on  the  farms  of
  this  state,  is  of  vast  economic  importance to the state and to the
  health and welfare of the inhabitants thereof; that it is essential,  in
  order  to  assure such continued production of milk and its handling and
  distribution, that prices to producers be such as to  return  reasonable
  costs  of  production, and at the same time to assure an adequate supply
  of milk and dairy products to consumers at  reasonable  prices;  and  to
  these  ends  it  is  essential  that  consumers and others be adequately
  informed as to the dietary  needs  and  advantages  of  milk  and  dairy
  products  and  as  to  the  economies resulting from the use of milk and
  dairy products, and to command for milk  and  dairy  products,  consumer

  attention  and  demand consistent with their importance and value. It is
  further declared that continued decline in the consumption of fluid milk
  and some other dairy products will jeopardize the production of adequate
  supplies  of  milk  and  dairy  products because of increasing surpluses
  necessarily returning less to producers;  and  that  continued  adequate
  supplies  of  milk  and  dairy  products is a matter of vital concern as
  affecting the health and general welfare of the people of this state. It
  is therefore declared to be the legislative intent  and  policy  of  the
  state:
    (i)  To  enable  milk producers and others in the dairy industry, with
  the aid of the state, to more effectively  promote  the  consumption  of
  milk and dairy products,
    (ii)  To  provide  methods  and  means  for the development of new and
  improved dairy products, and to promote their use, and
    (iii) To this  end,  to  eliminate  the  possible  impairment  of  the
  purchasing  power  of  the milk producers of this state and to assure an
  adequate supply of milk for consumers at reasonable prices.
    2. Definitions. As used in this section the following terms shall have
  the following meanings:
    (a) "President" means the president of the corporation.
    (b) "Dairy products" means milk and products  derived  therefrom,  and
  products of which milk or a portion thereof is a significant part.
    (c)  "Producer"  means  any person in this state who is engaged in the
  production of milk or who causes milk to be produced for any  market  in
  this or any other state.
    (d)  "Advisory  board" means the persons appointed by the commissioner
  from nominations from producers to assist the president in administering
  a dairy promotion order.
    (e) "Milk dealer"  means  any  person  who  purchases  or  handles  or
  receives   or   sells   milk,   including   individuals,   partnerships,
  corporations, cooperative associations, and  unincorporated  cooperative
  associations.
    (f)  "Dairy  promotion  order" means an order issued by the president,
  pursuant to the provisions of this section.
    (g) "Cooperative" means an association or federation or cooperative of
  milk producers organized under the laws of New York state, or any  other
  state,  having agreements with their producer members to market, bargain
  for or sell the milk of such producers, and is actually  performing  one
  or more of these services in the marketing of the milk produced by their
  members,  through  the  cooperative  or  through  a  federation  of milk
  cooperatives in which the cooperative has membership.
    (h) "State" means the state of New York.
    (i) "Department" means the New York state  department  of  agriculture
  and markets.
    (j)  "Commissioner"  means  the  commissioner  of  the  New York state
  department of agriculture and markets.
    3. Powers and  duties  of  the  president.  (a)  The  president  shall
  administer  and  enforce  the  provisions  of  this section. In order to
  effectuate the  declared  policy  of  this  section  the  president,  in
  consultation  with the commissioner and producers, may, after due notice
  and hearing, make and issue a dairy promotion order, or orders.
    (b) Such order or orders shall, in consultation with the  commissioner
  and  producers,  be  issued and amended or terminated in accordance with
  the following procedures:
    (i) Before any such order may become effective it must be approved  by
  fifty-one  per  centum of the producers of milk voting in the referendum
  for the area to be regulated by such order. Such  referendum  shall  not
  constitute  valid  approval  unless  fifty-one  per  centum  of all milk

  producers for the area to be regulated vote in the referendum. Producers
  may  vote  by  individual  ballot  or  through  their  cooperatives   in
  accordance with the following procedures:
    (A)  Cooperatives  may  submit written approval of such order within a
  period of one hundred twenty days after the president  has  announced  a
  referendum  on  a  proposed order, for such producers who are listed and
  certified to the president as members  of  such  cooperative;  provided,
  however,  that  any  cooperative before submitting such written approval
  shall give at least sixty days prior written notice to each producer who
  is its member, of the intention  of  the  cooperative  to  approve  such
  proposed  order,  and  further provide that if such cooperative does not
  intend to approve such proposed order, it shall  likewise  give  written
  notice  to each such producer who is its member, of its intention not to
  approve of such proposed order.
    (B) Any producer may obtain a ballot from the president so that he  or
  she  may register his or her own approval or disapproval of the proposed
  order.
    (C) A producer who is a member of a cooperative which has notified him
  or her of its intent to approve or not to approve of a  proposed  order,
  and  who  obtains  a  ballot  and  with such ballot expresses his or her
  approval  or  disapproval  of  the  proposed  order,  shall  notify  the
  president  as  to  the  name  of the cooperative of which he or she is a
  member, and the president shall remove such  producer's  name  from  the
  list certified by such cooperative.
    (D)  In order to ensure that all milk producers are informed regarding
  a proposed order, the president shall notify all milk producers that  an
  order is being considered and that each producer may register his or her
  approval  or  disapproval  with the president either directly or through
  his or her cooperative.
    (E) The president shall consult with the milk producers and  establish
  a  referendum  advisory committee to assist and advise him or her in the
  conduct of  the  referendum.  Such  committee  shall  review  referendum
  procedures and the tabulation of results, and shall advise the president
  of its findings. The final certification of the referendum results shall
  be  made  by  the  president.  The  committee  shall  be selected by the
  commissioner in consultation with the president, and  shall  consist  of
  not  less  than  three  members,  none of whom shall be persons directly
  affected by the promotion order being voted upon. Two members  shall  be
  representatives  of  general  farm  organizations which are not directly
  affected by the order being voted upon. The  members  of  the  committee
  shall  not  receive  a  salary  but  shall  be  entitled  to  actual and
  reasonable expenses incurred in the performance of their duties.
    (ii) The president, in consultation with the  commissioner,  may,  and
  upon  written  petition of not less than ten per centum of the producers
  in  the   area,   either   as   individuals   or   through   cooperative
  representation,  shall, call a hearing to amend or terminate such order,
  and any such amendment or  termination  shall  be  effective  only  upon
  approval  of  fifty-one per centum of the producers of milk for the area
  regulated participating in a referendum vote  as  provided  pursuant  to
  this paragraph.
    (c)  The president, consulting with and seeking the advice and consent
  of the advisory board, shall  administer  and  enforce  any  such  dairy
  promotion order while it is in effect, for the purpose of:
    (i)  Encouraging  the  consumption  of  milk  and  dairy  products  by
  acquainting consumers and others with  the  advantages  and  economy  of
  using more of such products,
    (ii)  Protecting  the  health  and welfare of consumers by assuring an
  adequate supply of milk and dairy products,

    (iii) Providing for research programs  designed  to  develop  new  and
  improved dairy products,
    (iv)  Providing  for  research programs designed to acquaint consumers
  and the public generally with the effects of the use of milk  and  dairy
  products on the health of such consumers,
    (v)  Carrying  out,  in  other ways, the declared policy and intent of
  this section.
    4. Provisions of dairy promotion orders. Any dairy promotion order  or
  orders may contain, among others, any or all of the following:
    (a)  Provision for levying an assessment against all producers subject
  to the regulation for the purpose of carrying out the provisions of such
  order and to pay the cost of administering and enforcing such order.  In
  order  to collect any such assessments, provision shall be made for each
  milk dealer who receives milk from producers to  deduct  the  amount  of
  assessment  from  moneys  otherwise  due  to  producers  for the milk so
  delivered. The rate of such assessment shall not exceed two percent  per
  hundredweight  of  the gross value of the producers' milk, and there may
  be credited against any such assessment the  amounts  per  hundredweight
  otherwise  paid  by  any  producer  covered  by  the  order by voluntary
  contribution or otherwise pursuant to any other federal  or  state  milk
  market  order for any similar research promotion or advertising program.
  Notwithstanding the provisions of paragraph (b) of subdivision three  of
  this  section,  the  president,  upon  written  petition of no less than
  twenty-five percent of producers in the area, either as  individuals  or
  through   cooperative  representation,  and  in  consultation  with  the
  commissioner, may call a hearing for the sole purpose of establishing  a
  new rate of assessment hereunder and may submit a proposed change in the
  rate  of assessment to the producers for acceptance or rejection without
  otherwise affecting the order. The producers in the area may vote on the
  proposed   rate   either   as   individuals   or   through   cooperative
  representation.   Notwithstanding   the  foregoing  provisions  of  this
  paragraph and of paragraph (b) of subdivision three of this section,  or
  the  provisions  of  any order promulgated pursuant to this section, the
  rate of assessment,  for  any  period  during  which  a  dairy  products
  promotion  and  research order established pursuant to the federal dairy
  and tobacco adjustment act of 1983 is in effect, shall not be less  than
  an  amount  equal to the maximum credit which producers participating in
  this state's dairy products promotion or  nutrition  education  programs
  may receive pursuant to subdivision (g) of Sec. 113 of said federal act.
    (b)  Provision  for  payments to organizations engaged in campaigns by
  advertisements or otherwise, including participation in similar regional
  or national plans or campaigns to promote the increased  consumption  of
  milk  and  dairy  products,  to  acquaint  the  public  with the dietary
  advantages of milk and dairy products and  with  the  economy  of  their
  inclusion  in  the  diet  and  to  command, for milk and dairy products,
  consumer attention consistent with their importance and value.
    (c) Provision for payments to institutions or organizations engaged in
  research leading to the development of new or improved dairy products or
  research with respect to the value of milk and  dairy  products  in  the
  human diet.
    (d) Provision for requiring records to be kept and reports to be filed
  by  milk  dealers  with respect to milk received from producers and with
  respect to assessments on the milk of such producers.
    (e) Provision for the auditing of the records of such milk dealers for
  the purpose of verifying payment of producer assessments.
    (f) Provision for an advisory board pursuant to subdivision 10 of this
  section.

    (g) Provision for the president to retain money  collected  under  any
  marketing order issued pursuant to this section, to defray the costs and
  expenses in the administration thereof.
    (h)  Such  other  provisions  as  may  be  necessary to effectuate the
  declared policies of this section.
    5. Matters to be considered. In carrying out the  provisions  of  this
  section and particularly in determining whether or not a dairy promotion
  order   shall  be  issued,  the  president,  in  consultation  with  the
  commissioner,  shall  take  into  consideration,  among  others,   facts
  available to him or her with respect to the following:
    (a)  The  total  production  of milk in the area and the proportion of
  such milk being utilized in fluid form and in other products,
    (b) The prices being received for milk by producers in the area,
    (c) The level of consumption per capita for fluid milk  and  of  other
  dairy products,
    (d) The purchasing power of consumers,
    (e)  Other  products  which  compete  with milk and dairy products and
  prices of such products.
    6. Interstate orders for compacts. The commissioner is  authorized  to
  confer  and  cooperate with the legally constituted authorities of other
  states and of the  United  States  with  respect  to  the  issuance  and
  operation  of  joint  and  concurrent  dairy  promotion  orders or other
  activities tending to carry out the declared  intent  of  the  act.  The
  commissioner  may  join  with such other authorities in conducting joint
  investigations, holding joint hearings and issuing joint  or  concurrent
  order or orders complementary to those of the federal government and the
  president,  after  consulting  with  the  commissioner,  shall  have the
  authority to employ or designate a joint  agent  or  joint  agencies  to
  carry out and enforce such joint, concurrent or supplementary orders.
    7.  Prior  assessments.  Prior  to  the  effective  date  of any dairy
  promotion  order  as  provided  in  this  section,  the  president,   in
  consultation   with  the  commissioner,  may  require  that  cooperative
  associations which have petitioned for  such  an  order  and  that  have
  approved of the issuance of such an order, to deposit with the president
  such  amounts  as  he or she may deem necessary to defray the expense of
  administering  and  enforcing  such  order  until  such  time   as   the
  assessments  as  herein  before  provided are adequate for that purpose.
  Such funds shall be received, deposited and disbursed by  the  president
  in  the  same  manner  as other funds received by him or her pursuant to
  this section and the president shall  reimburse  those  who  paid  these
  prior  assessments  from  other funds received by him or her pursuant to
  this section.
    8. Status of funds. Any moneys collected under any market order issued
  pursuant to this section shall not be deemed to be state or  corporation
  funds  and  shall  be  deposited  in  a  bank or other depository of the
  corporation,  approved  by  the  president,  allocated  to  each   dairy
  promotion  order under which they were collected, and shall be disbursed
  by the president  only  for  the  necessary  expenses  incurred  by  the
  president  with  respect  to each separate order, all in accordance with
  the rules and regulations of the president. All such expenses  shall  be
  subject to audits by the state comptroller. Any moneys remaining in such
  fund  allocable  to  a  particular  order, after the termination of such
  order and not required by  the  president  to  defray  the  expenses  of
  operating such order, may in the discretion of the president be refunded
  on  a  pro-rata basis to all persons from whom assessments therefor were
  collected; provided, however, that  if  the  president  finds  that  the
  amounts  so  refundable  are  so  small  as  to  make  impracticable the
  computation and refunding of such moneys, the  president  may  use  such

  moneys   to   defray  the  expenses  incurred  by  him  or  her  in  the
  promulgation, issuance,  administration  or  enforcement  of  any  other
  similar  dairy promotion order or in the absence of any other such dairy
  promotion  order,  the president may pay such moneys to any organization
  or institution as provided in paragraph (b) or (c) of  subdivision  four
  of this section.
    9. Budget. The commissioner, in consultation with the president, shall
  prepare a budget for the administration and operating costs and expenses
  including  advertising  and  sales  promotion when required in any dairy
  promotion order executed hereunder and to provide for the collection  of
  such  necessary  fees or assessments to defray costs and expenses, in no
  case to exceed two percent per hundredweight of the gross value of  milk
  marketed by producers in the area covered by the order.
    10.  Advisory  board. (a) Any dairy promotion order issued pursuant to
  this section shall provide for the establishment of an advisory board to
  advise and assist the president in the administration of such order. The
  president shall administer and enforce any such  dairy  promotion  order
  while  it  is  in effect, consulting with the advisory board and seeking
  its advice and consent. This board shall consist of not less  than  five
  members  and  shall  be  appointed  by the commissioner from nominations
  submitted by producers marketing milk in the area  to  which  the  order
  applies.  Nominating  procedure, qualification, representation, and size
  of the advisory board shall be prescribed in the order  for  which  such
  board was appointed.
    (b) No member of an advisory board shall receive a salary but shall be
  entitled  to  his  or  her actual and reasonable expenses incurred while
  performing his or her duties as authorized in this section.
    (c) The duties and responsibilities of the  advisory  board  shall  be
  prescribed  by the president, in consultation with the commissioner, and
  he or  she  shall  specifically  delegate  to  the  advisory  board,  by
  inclusion  in  the  dairy  promotion  order  the  following  duties  and
  responsibilities:
    (i) The recommendation to the president of  administrative  rules  and
  regulations relating to the order.
    (ii)  Recommending  to  the  president such amendments to the order as
  deemed advisable.
    (iii)  The  preparation  and  submission  to  the   commissioner,   in
  consultation with the president, of an estimated budget required for the
  proper operation of the order.
    (iv) Recommending to the president methods for assessing producers and
  methods for collecting the necessary funds.
    (v)  Assisting  the  president  in  the  collection  and  assembly  of
  information and data necessary for  the  proper  administration  of  the
  order.
    (vi) The performance of such other duties in connection with the order
  as the president shall designate.
    11.  Rules  and  regulations; enforcement. (a) The president may, with
  the advice and consent of the advisory board, make and issue such  rules
  and  regulations  as  may  be necessary to effectuate the provisions and
  intent of this section and  to  enforce  the  provisions  of  any  dairy
  promotion order, all of which shall have the force and effect of law.
    (b) The president, in consultation with the commissioner may institute
  such  action  at  law  or  in  equity as may appear necessary to enforce
  compliance  with  any  provision  of  this  section,  or  any  rule   or
  regulation,   or   dairy   promotion  order  committed  to  his  or  her
  administration, and may apply for relief by injunction if  necessary  to
  protect  the  public interest without being compelled to allege or prove
  that an adequate remedy at law does not exist. Such application shall be

  made to the supreme court in any district  or  county  provided  in  the
  civil  practice  law  and  rules,  or  to the supreme court in the third
  judicial district.
    12.  Cooperation  by  the  department.  The  president may request and
  receive, within ninety days of such request  from  the  department  such
  assistance,  information  and  cooperation  as  may be necessary for the
  corporation to provide services with respect to  the  administration  of
  the  procedures  set forth for the issuance, termination or amendment of
  any dairy promotion order and/or the administration of any  such  order.
  The corporation shall retain an amount equal to the expenses incurred by
  the  corporation  in  performing its duties pursuant to this section and
  reimburse the department an amount equal to the expenses incurred by the
  department in supplying such  services,  subsequent  to  submission  and
  audit  of  a  voucher  therefor. Such reimbursement shall not exceed the
  total amount of funds collected by  the  corporation  pursuant  to  this
  section  less  the  reasonable  expenses  incurred by the corporation in
  performing its duties pursuant to this section.
    13. Indemnification.  The  state  shall  defend,  indemnify  and  hold
  harmless  the  corporation, its directors, officers, and employees, from
  and against any and all claims,  demands,  causes  of  action,  damages,
  costs  and  expenses  whatsoever arising directly or indirectly from, or
  relating to, the administration of a dairy  promotion  order  issued  or
  administered pursuant to this section. In connection with the foregoing,
  the  corporation  shall  give the state (a) prompt written notice of any
  action, claim or threat of suit,  (b)  the  opportunity  to  take  over,
  settle or defend such action, claim or suit at the state's sole expense,
  and  (c)  assistance in the defense of any such action at the expense of
  the state.
    14. Contractual provisions. The corporation may contract for  services
  with  respect  to  the implementation of this section in accordance with
  the corporation's policies, procedures and  guidelines.  Notwithstanding
  section  2879  of  the  public  authorities  law or any other law to the
  contrary, any such contract may be procured  by  the  corporation  on  a
  sole-source  basis,  and  shall  not  be  subject  to competitive bid or
  competitive request for proposal requirements.
    * NB Repealed July 11, 2018
    * § 16-y. Marketing of agricultural products. Declaration  of  policy.
  (a)  It  is  hereby  declared  that the mission of the corporation is to
  promote a vigorous and  growing  state  economy.  In  implementing  this
  mission,  the  corporation  has undertaken a vigorous campaign to market
  the state's assets and by carrying out the provisions of  this  section,
  would  further  this mission by promoting the development of markets for
  agricultural products grown and produced in the state.
    (b)  It  is  further  declared  that  the  marketing  of  agricultural
  commodities  and aquatic products in this state, in excess of reasonable
  and  normal  market  demands  therefor;  disorderly  marketing  of  such
  commodities; improper preparation for market and lack of uniform grading
  and  classification  of  agricultural  commodities and aquatic products;
  unfair methods of competition in the marketing of such  commodities  and
  the  inability of individual producers to develop new and larger markets
  for  agricultural  commodities  and  aquatic  products,  result  in   an
  unreasonable  and  unnecessary economic waste of the agricultural wealth
  of this state. Such conditions and the accompanying waste jeopardize the
  future continued production of adequate food supplies for the people  of
  this  and  other  states.  These  conditions vitally concern the health,
  safety and general welfare of the people of this state.
    It is therefore declared the legislative purpose  and  the  policy  of
  this state:

    (i)  To  enable  agricultural  producers and aquatic producers of this
  state, with the aid of the state,  more  effectively  to  correlate  the
  marketing  of  their  agricultural commodities and aquatic products with
  market demands therefor.
    (ii)  To  establish  orderly,  efficient  and  equitable  marketing of
  agricultural commodities and aquatic products.
    (iii) To  provide  for  uniform  grading  and  proper  preparation  of
  agricultural commodities and aquatic products for market.
    (iv)  To  provide  methods  and  means  for the development of new and
  larger  markets  for  agricultural  commodities  and  aquatic   products
  produced in New York.
    (v)  To  eliminate  or  reduce  the economic waste in the marketing of
  agricultural commodities and aquatic products.
    (vi) To eliminate unjust impairment of the purchasing power of aquatic
  producers and the agricultural producers of this state; and
    (vii) To aid agricultural and  aquatic  producers  in  maintaining  an
  income at an adequate and equitable level.
    2.  Definitions.  (a)  "Agricultural  commodity"  means  any  and  all
  agricultural, horticultural, vineyard products, corn  for  grain,  oats,
  soybeans,  barley,  wheat,  poultry or poultry products, bees, maple sap
  and pure maple products produced therefrom, christmas trees,  livestock,
  including  swine,  and  honey, sold in the state either in their natural
  state or as processed by the producer thereof but does not include milk,
  timber or timber products, other than christmas trees, all hay, rye  and
  legumes except for soybeans.
    (b)  "Aquaculture"  means  the  culture,  cultivation  and  harvest of
  aquatic plants and animals.
    (c) "Aquatic products" means  any  food  or  fiber  products  obtained
  through  the  practice  of  aquaculture,  including  mariculture;  or by
  harvest from the sea when such products are cultured or landed  in  this
  state.  Such  products  include  but are not limited to fish, shellfish,
  seaweed or other water based plant life.
    (d) "Producer" means any person  engaged  within  this  state  in  the
  business  of  producing,  or  causing to be produced for any market, any
  agricultural commodity or aquatic product.
    (e) "Handler" means any person engaged in the  operation  of  packing,
  grading,   selling,  offering  for  sale  or  marketing  any  marketable
  agricultural commodities or aquatic products, who  as  owner,  agent  or
  otherwise ships or causes an agricultural commodity to be shipped.
    (f)  "Processor"  means  any  person  engaged  within  this  state  in
  processing, or in the operation of receiving, grading, packing, canning,
  freezing, dehydrating, fermenting, distilling,  extracting,  preserving,
  grinding,  crushing, or in any other way preserving or changing the form
  of an agricultural  product  or  aquatic  product  for  the  purpose  of
  marketing  such  commodity  but  shall  not  include a person engaged in
  manufacturing from an agricultural commodity or aquatic product  another
  and different product.
    (g)  "Distributor"  means  any  person  engaged  within this state, in
  selling, offering for sale, marketing or  distributing  an  agricultural
  commodity  or  aquatic product which he or she has purchased or acquired
  from a producer or other person or which  he  or  she  is  marketing  on
  behalf of a producer or other person, whether as owner, agent, employee,
  broker  or  otherwise,  but  shall  not  include a retailer, except such
  retailer who purchases or acquires from, or handles  on  behalf  of  any
  producer  or  other person, an agricultural commodity or aquatic product
  subject to regulation by the marketing agreement or order covering  such
  commodity.
    (h) "President" means the president of the corporation.

    (i)  "Marketing  agreement"  means an agreement entered into, with the
  approval of the president, by producers  with  distributors,  processors
  and   handlers   regulating   the  preparation,  sale  and  handling  of
  agricultural commodities or aquatic products.
    (j)  "Marketing order" means an order issued by the president pursuant
  to  this  section,  prescribing  rules  and  regulations  governing  the
  marketing for processing, the distributing, the sale of, or the handling
  in  any  manner of any agricultural commodity or aquatic product sold in
  this state during any specified period or periods.
    (k) "Commissioner" means  the  commissioner  of  the  New  York  state
  department of agriculture and markets.
    (l)  "Department"  means  the New York state department of agriculture
  and markets.
    3. Powers and duties of the president. (a) In order to effectuate  the
  declared policy of this section, the president, in consultation with the
  commissioner, may, after due notice and opportunity for hearing, approve
  marketing  agreements,  which  marketing  agreements  shall thereupon be
  binding upon the signatories thereto exclusively.
    (b) The president, in  consultation  with  the  commissioner  and  the
  producers,  may  make  and  issue marketing orders, after due notice and
  opportunity for hearing, subject to:
    (i) approval of not less than sixty-six and two-thirds per  centum  of
  the producers participating in a referendum in the area affected, or
    (ii)  approval of not less than sixty-five per centum of the producers
  participating in a referendum vote, in the  area  affected,  and  having
  marketed not less than fifty-one per centum of the total quantity of the
  commodity  which  was marketed in the next preceding, ordinary marketing
  season by all producers that voted in the referendum, or
    (iii) approval of not less than fifty-one per centum of the  producers
  participating  in  a  referendum  vote, in the area affected, and having
  marketed not less than sixty-five per centum of the  total  quantity  of
  the  commodity  which  was  marketed  in  the  next  preceding, ordinary
  marketing season by all producers that  voted  in  the  referendum.  The
  president  may, and upon written petition duly signed by twenty-five per
  centum of the producers in the area amend or terminate such order  after
  due  notice  and opportunity for hearing, but subject to the approval of
  not less than fifty per centum of  such  producers  participating  in  a
  referendum vote.
    (c)  The president, consulting with and seeking the advice and consent
  of the advisory board shall administer and enforce any marketing  order,
  while it is in effect, to:
    (i)  Encourage  and  maintain  stable prices received by producers for
  such agricultural commodity and aquatic product  at  a  level  which  is
  consistent with the provisions and aims of this act.
    (ii)  Prevent  the  unreasonable or unnecessary waste of land or water
  based wealth.
    (iii) Protect  the  interests  of  consumers  of  such  commodity,  by
  exercising  the powers of this section to such extent as is necessary to
  effectuate the purposes of this act.
    (iv) Provide consultation to the commissioner who shall budget for the
  administration and operating costs and expenses, seeking the advice  and
  consent of the advisory board, including advertising and sales promotion
  when  required  in  any  marketing  agreement  or order executed in this
  section and  to  provide  for  the  collection  and  retention  of  such
  necessary  fees  to defray such costs and expenses, in no case to exceed
  five percent of the gross dollar volume of sales  or  dollar  volume  of
  purchases  or  amounts handled, to be collected from each person engaged
  in the production, processing,  distributing  or  the  handling  of  any

  marketable agricultural commodity and aquatic product produced or landed
  in  this  state  and  directly  affected  by  any marketing order issued
  pursuant to this section for such commodity.
    (v)  Confer  and cooperate with the legally constituted authorities of
  other states and the United States.
    (d) Any marketing agreement or order issued by the president  pursuant
  to  this section, in consultation with the commissioner, may contain any
  or all of the following:
    (i) Provisions for determining the existence and extent of the surplus
  of any agricultural commodity, or of any grade, size or quality thereof,
  and providing for the regulation and disposition of such surplus.
    (ii) Provisions for limiting the total quantity  of  any  agricultural
  product,  or  of  any  grade  or  grades,  size  or sizes, or quality or
  portions or combinations thereof,  which  may  be  marketed  during  any
  specified  period  or periods. Such total quantity of any such commodity
  so regulated shall not be less than the  quantity  which  the  president
  shall  find  is  reasonably  necessary  to  supply  the market demand of
  consumers for such commodity.
    (iii) Provisions regulating to the period, or  periods,  during  which
  any  agricultural  commodity,  or  any grade or grades, size or sizes or
  quality or portions or combinations of such commodity, may be marketed.
    (iv) Provisions for the establishment of uniform  grading,  standards,
  and  inspection  of any agricultural commodity delivered by producers or
  other persons to handlers, processors, distributors or  others  engaging
  in  the  handling  thereof,  and  for  the  establishment  of grading or
  standards  of  quality,  condition,  size,  maturity  or  pack  for  any
  agricultural commodity, and the inspection and grading of such commodity
  in  accordance  with  such  grading or standards so established; and for
  provisions that no producer, handler, processor or  distributor  of  any
  agricultural commodity for which grading or standards are so established
  may,  except as otherwise provided in such marketing agreement or order,
  sell, offer for sale, process, distribute or otherwise handle  any  such
  commodity whether produced within or without this state, not meeting and
  complying  with  such established grading or standards. For the purposes
  of this section, the federal-state inspection service shall perform  all
  inspections made necessary by such provisions.
    (v)  Provisions for the establishment of research programs designed to
  benefit a specified commodity or New York agriculture in general.
    (vi) Provisions for the president to retain money collected under  any
  marketing  order issued pursuant to this section to defray the costs and
  expenses in the administration thereof.
    (vii) Such other provisions as may  be  necessary  to  effectuate  the
  declared policies of this section.
    (viii)  Provisions  to  establish  marketing  promotion  and  research
  programs for  aquatic  products  which  may  include  subparagraphs  (i)
  through (vii) of this paragraph.
    (e)  The president, seeking the advice and the consent of the advisory
  board, may temporarily suspend the operation of an  effective  marketing
  order  for  a  continuing  period  of  not  longer  than one growing and
  marketing season, if the purposes of this section are deemed unnecessary
  during such season.
    (f) In carrying out the purposes of this section,  the  president,  in
  consultation  with  the commissioner and consulting with and seeking the
  advice and consent of the advisory board, shall take into  consideration
  any  and all facts available to him or her with respect to the following
  economic factors:
    (i)  The  quantity  of  such  agricultural  commodity  available   for
  distribution.

    (ii)  The quantity of such agricultural commodity normally required by
  consumers.
    (iii) The cost of producing such agricultural commodity.
    (iv) The purchasing power of consumers.
    (v)  The  level  of prices of commodities, services and sections which
  the farmers commonly buy.
    (vi) The level of prices of other commodities which  compete  with  or
  are utilized as substitutes for such agricultural commodity.
    (g)  The  execution  of  such  marketing agreements shall in no manner
  affect the issuance, administration  or  enforcement  of  any  marketing
  order  provided for in this section. The president, in consultation with
  the commissioner, may issue such marketing  order  without  executing  a
  marketing agreement or may execute a marketing agreement without issuing
  a  marketing order covering the same commodity. The president, in his or
  her discretion,  in  consultation  with  the  commissioner  may  hold  a
  concurrent  hearing  upon  a proposed marketing agreement and a proposed
  marketing order in  the  manner  provided  for  giving  due  notice  and
  opportunity  for  hearing  for  a  marketing  order  as provided in this
  section.
    (h) Prior to the issuance, amendment or termination of  any  marketing
  order,  the  president  may  require  the  applicants for such issuance,
  amendment or termination to deposit with him or her such amount as he or
  she may deem necessary to defray the expenses of  preparing  and  making
  effective amending or terminating a marketing order. Such funds shall be
  received, deposited and disbursed by the president in the same manner as
  other  fees  received by him or her under this section and, in the event
  the application for adoption, amendment or termination  of  a  marketing
  order  is  approved  in  a referendum, the president shall reimburse any
  such applicant in the amount of any such  deposit  from  any  unexpended
  monies collected under the marketing order affected by such referendum.
    (i)  Any  moneys  collected  by the president pursuant to this section
  shall not be deemed state or corporation funds and shall be deposited in
  a  bank  or  other  depository  of  the  corporation,  approved  by  the
  president,  allocated  to  each  marketing  order  under  which they are
  collected, and  shall  be  disbursed  by  the  president  only  for  the
  necessary  expenses  incurred by the president with respect to each such
  separate  marketing  order,  all  in  accordance  with  the  rules   and
  regulations  of the president. All such expenditures shall be subject to
  audits by the state comptroller.  Any  moneys  remaining  in  such  fund
  allocable to any particular commodity affected by a marketing order may,
  in  the  discretion  of  the  president, be refunded at the close of any
  marketing season  upon  a  pro-rata  basis  to  all  persons  from  whom
  assessments  therefor  were  collected  or, whenever the president finds
  that such moneys may be necessary to defray the cost of  operating  such
  marketing  order  in  a succeeding marketing season, he or she may carry
  over all or any portion of such moneys into  the  next  such  succeeding
  season.  Upon  the  termination by the president of any marketing order,
  all moneys remaining and not required by the  president  to  defray  the
  expenses  of  operating  such  marketing order, shall be refunded by the
  president upon a pro-rata basis to all  persons  from  whom  assessments
  therefor  were collected; provided, however, that if the president finds
  that the amounts so refundable are so small as to make impracticable the
  computation and refunding of such refunds, the president  may  use  such
  moneys to defray the expenses incurred by him or her in the formulation,
  issuance,  administration  or  enforcement  of  any subsequent marketing
  order for such commodity.
    (j) Advisory board. (i) Any marketing order issued  pursuant  to  this
  section  shall  provide  for  the establishment of an advisory board, to

  consist of not less than five members nor more  than  nine  members,  to
  advise  the  president  in the administration of such marketing order in
  accordance with its terms and provisions. The president shall administer
  and  enforce  any  such order while it is in effect, consulting with the
  advisory board and seeking its advice and consent. The members  of  said
  board  shall  be appointed by the commissioner from nominations received
  from the commodity group for which the marketing order  is  established.
  Nominating  procedure,  qualification,  representation  and  size of the
  advisory board shall be prescribed in each  marketing  order  for  which
  such  board  is appointed. Each advisory board shall be composed of such
  producers and handlers or processors as are  directly  affected  by  the
  marketing  order in such proportion of representation as the order shall
  prescribe. The commissioner may appoint one  person  who  is  neither  a
  producer,  processor  or  other  handler  to represent the department of
  agriculture and markets, the corporation, or the public generally.
    (ii) No member of an advisory board shall receive a salary,  but  each
  shall  be  entitled to his or her actual expenses incurred while engaged
  in performing his or her duties herein authorized.
    (iii) The duties and responsibilities of each advisory board shall  be
  prescribed  by the president, in consultation with the commissioner, and
  he or  she  shall  specifically  delegate  to  the  advisory  board,  by
  inclusion   in   the   marketing   order,   the   following  duties  and
  responsibilities:
    (A) The recommendation to the president of  administrative  rules  and
  regulations relating to the marketing order.
    (B)  Recommending  to  the  president such amendments to the marketing
  order as deemed advisable.
    (C)  The  preparation  and  submission   to   the   commissioner,   in
  consultation  with  the  president, of the estimated budget required for
  the proper operation of the marketing order.
    (D) Recommending to the president methods for assessing members of the
  industry and methods for collecting the necessary funds.
    (E) Assisting the  president  in  the  collection  and  assembling  of
  information  and  data  necessary  to  the  proper administration of the
  order.
    (F) The performance of  such  other  duties  in  connection  with  the
  marketing order as the president shall designate.
    4.  Rules and regulations; enforcement. The president, with the advice
  and consent of the advisory board, may make and  promulgate  such  rules
  and  regulations  as  may  be necessary to effectuate the provisions and
  intent of this section and to enforce the  provision  of  any  marketing
  agreement or order, all of which shall have the force and effect of law.
    The  president,  in  consultation  with the commissioner may institute
  such action at law or in equity  as  may  appear  necessary  to  enforce
  compliance   with  any  provision  of  this  section,  or  any  rule  or
  regulation, marketing agreement  or  order,  committed  to  his  or  her
  administration,  and  in  addition may apply for relief by injunction if
  necessary to protect the public  interest  without  being  compelled  to
  allege  or  prove  that  an  adequate remedy at law does not exist. Such
  application may be made to the supreme court in any district  or  county
  as provided in the civil practice law and rules, or to the supreme court
  in the third judicial district.
    5. Cooperation by the department. The president of the corporation may
  request  and  receive,  within  ninety  days  of  such request, from the
  department such  assistance,  information  and  cooperation  as  may  be
  necessary  for  the  corporation to provide services with respect to the
  administration of the procedures set forth for the issuance, termination
  or amendment of any agricultural, commodities or  aquatic  order  and/or

  the  administration  of  any such order. The corporation shall retain an
  amount equal to the expenses incurred by the corporation  in  performing
  its  duties  pursuant  to  this  section and reimburse the department an
  amount  equal  to  the  expenses incurred by the department in supplying
  such services, subsequent to submission and audit of a voucher therefor.
  Such reimbursement shall not exceed the total amount of funds  collected
  by the corporation pursuant to this section less the reasonable expenses
  incurred  by  the  corporation in performing its duties pursuant to this
  section.
    6.  Indemnification.  The  state  shall  defend,  indemnify  and  hold
  harmless  the  corporation, its directors, officers, and employees, from
  and against any and all claims,  demands,  causes  of  action,  damages,
  costs  and  expenses  whatsoever arising directly or indirectly from, or
  relating to, the administration  of  any  agricultural,  commodities  or
  aquatic promotion order issued or administered pursuant to this section.
  In  connection  with the foregoing, the corporation shall give the state
  (a) prompt written notice of any action, claim or threat  of  suit,  (b)
  the  opportunity  to  take  over, settle or defend such action, claim or
  suit at the state's sole expense, and (c) assistance in the  defense  of
  any such action at the expense of the state.
    7.  Contractual  provisions. The corporation may contract for services
  with respect to the implementation of this section  in  accordance  with
  the  corporation's  policies, procedures and guidelines. Notwithstanding
  section 2879 of the public authorities law  or  any  other  law  to  the
  contrary,  any  such  contract  may  be procured by the corporation on a
  sole-source basis, and shall  not  be  subject  to  competitive  bid  or
  competitive request for proposal requirements.
    * NB Repealed July 11, 2018
    * §  16-z.  Marketing  orders.  The  marketing  orders, the regulatory
  provisions relating thereto, set forth in  title  one  of  the  official
  compilation  of  codes,  rules  and regulations of the state of New York
  parts 40, 200, 201, 202, 203, 204, and 205, and the  contracts  relating
  thereto  shall remain in full force and effect until amended or repealed
  pursuant to the statutory authority set forth in sections 16-x and  16-y
  of  this  act  except  that:  (a)  such marketing orders, the regulatory
  provisions relating thereto, and the contracts relating thereto shall be
  administered by and under  the  supervision  of  the  president  of  the
  corporation  as  of the effective date of sections 16-x and 16-y of this
  act; (b) all undisbursed funds under the control of  the  department  of
  agriculture  and  markets  shall be transferred to the corporation on or
  before such effective date; and (c)  any  assessments  due  and  payable
  under  such  marketing  orders  shall  be  remitted  to  the corporation
  starting 30 days after the effective date of this section.
    * NB Repealed July 11, 2018
    § 17.  Bonds  and  notes  of  the  corporation.  (1)  Subject  to  the
  provisions  of  section eighteen of this act, the corporation shall have
  the power and is hereby authorized  from  time  to  time  to  issue  its
  negotiable  bonds  and notes in conformity with applicable provisions of
  the uniform commercial code  in  such  principal  amounts,  as,  in  the
  opinion  of  the  corporation,  shall be necessary to provide sufficient
  funds for achieving any of its corporate purposes, including the payment
  of interest on bonds and notes  of  the  corporation,  establishment  of
  reserves  to  secure such bonds and notes, and all other expenditures of
  the corporation incident to and necessary or convenient to carry out its
  corporate purposes and powers.
    (2) All bonds and notes issued by the corporation may  be  secured  by
  the  full  faith  and credit of the corporation or may be payable solely
  out of the revenues and receipts derived from  the  lease,  mortgage  or

  sale by the corporation of its projects or of any thereof, all as may be
  designated  in  the proceedings of the corporation under which the bonds
  or notes shall be authorized to be issued. Such bonds and notes  may  be
  executed  and  delivered by the corporation at any time and from time to
  time, may be in such form  and  denominations  and  of  such  tenor  and
  maturities, may be in bearer form or in registered form, as to principal
  and  interest  or  as  to  principal  alone,  all as the corporation may
  determine.
    (3) Bonds may be payable in such installments  and  at  such  time  or
  times  not  exceeding  fifty  years  from  the date thereof, as shall be
  determined by the corporation.
    (4)  Notes,  or  any  renewals  thereof,  may  be  payable   in   such
  installments  and  at  such  time or times as shall be determined by the
  corporation, not exceeding ten years from the date of the original issue
  of such notes.
    (5) Bonds and notes may be payable at such  place  or  places  whether
  within  or  without  the  state, may bear interest at such rate or rates
  payable at such time or times and at such place or places and  evidenced
  in  such  manner,  and  may  contain  such  provisions  not inconsistent
  herewith, all as shall be provided in the proceedings of the corporation
  under which the bonds or notes shall be authorized to be issued.
    (6) If deemed advisable by the corporation, there may be  retained  in
  the  proceedings  under  which any bonds or notes of the corporation are
  authorized to be issued an option to redeem all or any part  thereof  as
  may  be specified in such proceedings, at such price or prices and after
  such notice or notices and on such terms and conditions as  may  be  set
  forth in such proceedings and as may be recited in the face of the bonds
  or  notes,  but nothing herein contained shall be construed to confer on
  the corporation any right or option to redeem any bonds or notes  except
  as may be provided in the proceedings under which they shall be issued.
    (7) Any bonds or notes of the corporation may be sold at such price or
  prices,  at public or private sale, in such manner and from time to time
  as may be determined by the corporation, and the corporation may pay all
  expenses, premiums and  commissions  which  it  may  deem  necessary  or
  advantageous  in connection with the issuance and sale thereof. No bonds
  or notes of the corporation may be sold at private sale, however, unless
  such sale and the terms thereof have been approved in writing by (a) the
  comptroller where such sale is not to the comptroller, or (b) the  state
  director of the budget, where such sale is to the comptroller.
    (8) Any moneys of the corporation, including proceeds from the sale of
  any  bonds  or  notes, and revenues, reciepts and income from any of its
  projects  or  mortgages,  may  be  invested  and  reinvested   in   such
  obligations,  securities  and  other investments as shall be provided in
  the resolution or resolutions  under  which  such  bonds  or  notes  are
  authorized.
    (9)  Issuance  by  the  corporation  of one or more series of bonds or
  notes for one or more purposes shall not preclude it from issuing  other
  bonds or notes in connection with the same project or any other project,
  but  the  proceedings  whereunder  any  subsequent bonds or notes may be
  issued shall recognize and protect any prior pledge or mortgage made for
  any prior issue of bonds or notes unless in the proceedings  authorizing
  such  prior  issue  the  right  is reserved to issue subsequent bonds or
  notes on a parity with such prior issue.
    (10) The corporation is authorized to provide for the issuance of  its
  bonds  or  notes  for the purpose of refunding any bonds or notes of the
  corporation then outstanding, including the payment  of  any  redemption
  premium thereon and any interest accrued or to accrue to the earliest or
  subsequent  date  of  redemption,  purchase or maturity of such bonds or

  notes, and, if deemed advisable by the corporation, for  the  additional
  purpose   of   paying  all  or  any  part  of  the  cost  of  acquiring,
  constructing, reconstructing, rehabilitating, or improving any  project,
  or  the  making of any mortgage loan on any project. The proceeds of any
  such bonds or notes issued for  the  purpose  of  refunding  outstanding
  bonds or notes, may, in the discretion of the corporation, be applied to
  the purchase or retirement at maturity or redemption of such outstanding
  bonds  or  notes  either  on their earliest or any subsequent redemption
  date, and may, pending such application,  be  placed  in  escrow  to  be
  applied to such purchase or retirement at maturity or redemption on such
  date  as  may  be  determined  by  the  corporation.  Any  such escrowed
  proceeds,  pending  such  use,  may  be  invested  and   reinvested   in
  obligations  of  or  guaranteed  by  the United States of America, or in
  certificates of deposit or time deposits secured in such manner  as  the
  corporation  shall determine, maturing at such time or times as shall be
  appropriate to assure the prompt payment, as to principal, interest  and
  redemption  premium,  if any, on the outstanding bonds or notes to be so
  refunded. The interest, income and profits, if any, earned  or  realized
  on  any  such  investment  may  also  be  applied  to the payment of the
  outstanding bonds or notes to be so refunded. After  the  terms  of  the
  escrow  have  been  fully satisfied and carried out, any balance of such
  proceeds and interest, income and profits, if any, earned or realized on
  the investments thereof may be returned to the corporation for use by it
  in any lawful manner. The portion of the proceeds of any such  bonds  or
  notes issued for the additional purpose of paying all or any part of the
  cost  of  acquiring,  constructing,  reconstructing,  rehabilitating, or
  improving any project, or  the  making  of  any  mortgage  loan  on  any
  project,  may be invested and reinvested in obligations of or guaranteed
  by the United States of America, maturing not later  than  the  time  or
  times when such proceeds will be needed for the purpose of paying all or
  any  part  of  such  cost,  or the making of any such mortgage loan. The
  interest, income and  profits,  if  any,  earned  or  realized  on  such
  investments  may  be  applied  to the payment of all or any part of such
  cost, or the making of any such mortgage loan, or may  be  used  by  the
  corporation  in  any  lawful  manner.  All  such bonds or notes shall be
  issued and secured and shall be subject to the provisions of this act in
  the same manner and to the same extent  as  any  other  bonds  or  notes
  issued pursuant to this act.
    §  18.  Bond  authorization. The corporation shall not issue bonds and
  notes in an aggregate principal amount exceeding one billion two hundred
  ninety-five million dollars, excluding (1) bonds  and  notes  issued  to
  refund or otherwise repay outstanding bonds and notes of the corporation
  or of the New York state project finance agency, (2) notes issued by the
  corporation  to evidence eligible loans made to the corporation pursuant
  to the New York state project finance agency  act,  and  (3)  bonds  and
  notes  issued  with the approval of the state director of the budget and
  the New York state public authorities control board which are secured by
  and payable solely out of a specific project, other than  a  residential
  project,  undertaken  by  the  corporation  subsequent  to  June  first,
  nineteen hundred seventy-seven, and the revenues  and  receipts  derived
  therefrom,  without  recourse against other assets of the corporation or
  against  a  debt  service  reserve  fund  to  which  state   funds   are
  apportionable  pursuant  to  subdivision three of section twenty of this
  act, provided that the  corporation  shall  not  issue  bonds  or  notes
  pursuant  to this clause (3) if (a) (i) the arrangements under which the
  project is undertaken do not provide for annual real property taxes,  or
  payments  in  lieu of real property taxes, on the real property included
  in the project securing such bonds or  notes  which  together  at  least

  equal  the  average  annual  real  property  taxes  which were paid with
  respect to such real property for three years prior to  the  acquisition
  of  such  project  or  any  portion  thereof  by  the  corporation  or a
  subsidiary   thereof,  and  (ii)  after  a  public  hearing,  the  local
  legislative body of the city, town or village in which such  project  is
  to be located has not consented to such arrangements, provided, however,
  that  in  a city having a population of one million or more such consent
  shall be given by the board  of  estimate  of  such  city,  or  (b)  the
  aggregate  principal  amount  of  any  such bonds and notes is less than
  twice the amount of any  moneys  appropriated  by  the  state  and  made
  available  by  the  corporation  to  the project securing such bonds and
  notes, or (c) the aggregate principal amount  of  the  bonds  and  notes
  issued  pursuant  to  this  clause (3) will thereby exceed three hundred
  seventy-nine million dollars, excluding bonds and notes issued to refund
  or otherwise repay outstanding bonds and notes issued pursuant  to  this
  clause  (3),  provided,  however, that the corporation may provide for a
  pooled financing  arrangement  with  regard  to  bonds  issued  for  the
  purposes  of  financing  the  construction  of the Center for Computers,
  Microelectronics and  Telecommunications  at  Columbia  University,  the
  Center  for  Science  and Technology at Syracuse University, the Cornell
  Super  Computer  Center  at  Cornell  University,  the  Onondaga  County
  Convention  Center Complex, the Center for Advanced Materials Processing
  at  Clarkson  University,  the  Center  for  Electro-Optic  Imaging   at
  University  of  Rochester,  the  Center  for  Neural Science at New York
  University, the  Alfred  University  Incubator  Facilities  in  Allegany
  County  and  Steuben County, the Broadway Redevelopment Project, and the
  Sematech Semiconductor facility, and, that the aggregate amount of bonds
  which may be issued pursuant to this clause (3) shall be increased above
  the amounts in the following schedule for the purposes of providing  for
  the  costs  of  issuance including any debt service reserve requirements
  that may be necessary in accordance with the following schedule:
 
                                  Schedule
       Project                                 Amount
  The Carborundum Company
  Niagara Falls............................  4,400,000
  Hooker Chemicals & Plastics Corporation
  Niagara Falls............................ 13,500,000
  Moog, Inc.
  Town of Elma.............................  8,925,000
  Sybron Corporation
  Rochester................................  6,600,000
  Refined Syrups & Sugars, Inc.
  Yonkers..................................  7,500,000
  Sheraton Hotel
  Utica....................................  4,300,000
  Urban Renewal Parcel
  Office Building
  Utica....................................  5,000,000
  Downtown Retail Center
  Binghamton...............................  3,000,000
  American Stock Exchange/Office Facility
  New York City............................         -0
  New Printing Plant
  New York City (Bronx).................... 16,000,000
  New Electronics Manufacturing Plant
  New York City (Bronx)....................  8,000,000

  Savin Corporation
  Binghamton...............................  6,000,000
  Industrial Renewal Project
  New York City (Brooklyn).................  2,700,000
  Manufacturing Plant Expansion
  New York City (Bronx).................... 15,000,000
  Shopping Mall
  City of Buffalo..........................  2,100,000
  Nettleton Shoe
  Syracuse.................................  2,200,000
  Batten Kill Railroad Project
  Warren/Washington Counties...............  2,250,000
  Carrier Corporation
  Onondaga County.......................... 27,000,000
  Center for Industrial Innovation
  City of Troy............................. 33,000,000
  Fordham Plaza
  New York City (Bronx).................... 10,000,000
  Freezer Queen Foods, Inc.
  Buffalo..................................  2,380,000
  Chelsea Homes Project
  Marlboro (Ulster County).................  2,700,000
  Columbia University
  Center for Computers, Microelectronics
  and Telecommunications
  City of New York......................... 36,000,000
  Syracuse University
  Center for Science and Technology
  City of Syracuse......................... 27,000,000
  Cornell University
  Cornell Super Computer Center
  City of Ithaca...........................  5,000,000
  Onondaga County Convention
  Center Complex at Syracuse............... 40,000,000
  Clarkson University
  Center for Advance
  Materials Processing..................... 23,500,000
  University of Rochester
  Center for Elector-Optic Imaging......... 10,000,000
  New York University
  Center for Neural Science................  5,000,000
  Alfred University Incubator Facilities in
  Allegany County and Steuben County....... 10,000,000
  Broadway Redevelopment Project
  at Schenectady...........................  5,500,000
  Albany International
  East Greenbush (Rensselaer County).......  2,500,000
  Sematech Semi-Conductor Facility
  New York State........................... 40,000,000
  Stony Brook Incubator
  Project..................................  2,305,000
                                           -----------
  Total of Schedule...................... $389,360,000
                                          ============
 
    The  amounts  in  the  above  schedule  are  interchangeable among the
  projects listed but in no case may be used to fund or initiate any other
  project.

    § 19. Security for bonds or notes;  construction  and  acquisition  of
  projects. (1) The principal of and interest on any bonds or notes issued
  by  the  corporation  may  be  secured  by  a pledge of any revenues and
  receipts of the corporation and may be secured by a  mortgage  or  other
  instrument  covering  all  or  any  part  of  a  project,  including any
  additions, improvements, extensions to or enlargements of  any  projects
  thereafter made.
    (2)   Bonds   or  notes  issued  for  the  acquisition,  construction,
  reconstruction, rehabilitation, or improvement of a project may also  be
  secured by an assignment of any lease of or mortgage on such project and
  by an assignment of the revenues and receipts derived by the corporation
  from any such lease or mortgage.
    (3) The resolution under which the bonds or notes are authorized to be
  issued  and  any  such  mortgage,  lease or other instrument may contain
  agreements and provisions respecting the  maintenance  of  the  projects
  covered  thereby,  the  fixing and collection of rents or other revenues
  therefrom, including monies received in repayment of mortgage loans, and
  interest thereon, the creation and maintenance  of  special  funds  from
  such  rents  or  other revenues and the rights and remedies available in
  the event of default, all as the corporation shall deem advisable.
    (4) Each pledge, agreement, mortgage or other instrument made for  the
  benefit  or  security  of  any  of the bonds or notes of the corporation
  shall continue effective until the principal  of  and  interest  on  the
  bonds  or  notes  for the benefit of which the same were made shall have
  been fully paid, or until  provision  shall  have  been  made  for  such
  payment  in  the  manner provided in the resolution or resolutions under
  which the same may be authorized.
    (5) The corporation may provide in any proceedings under  which  bonds
  or  notes  may  be  authorized  that  any project or part thereof may be
  constructed,   reconstructed,   rehabilitated   or   improved   by   the
  corporation,  any  subsidiary,  or  any  lessee  or  any designee of the
  corporation, and may also provide in such proceedings for the  time  and
  manner  of  and  requisites for disbursements to be made for the cost of
  such construction, and  for  all  such  certificates  and  approvals  of
  construction  and  disbursements as the corporation shall deem necessary
  and provide for in such proceedings.
    (6) Any resolution or resolutions or  trust  indenture  or  indentures
  under  which  bonds  or  notes  of  the corporation are authorized to be
  issued may contain provisions for vesting in a trustee or trustees  such
  properties,  rights,  powers  and duties in trust as the corporation may
  determine which may include any or all of the rights, powers and  duties
  of  the  trustee appointed by the holders of any issue of notes or bonds
  pursuant to section  twenty-seven  of  this  act,  in  which  event  the
  provisions of said section twenty-seven authorizing the appointment of a
  trustee by such holders of bonds or notes shall not apply.
    (7)  It  is  the  intention  hereof  that any pledge or assignment for
  security made by the corporation shall be valid  and  binding  from  the
  time  when  the  same is made; that the monies or property so pledged or
  assigned and then held or thereafter received by the  corporation  shall
  immediately  be  subject to the lien or security interest of such pledge
  or assignment without any physical delivery thereof or further act;  and
  that  the  lien  or  security  interest of any such pledge or assignment
  shall be valid and binding as against all parties having claims  of  any
  kind   in   tort,   contract   or  otherwise  against  the  corporation,
  irrespective of whether such parties have notice  thereof.  Neither  the
  resolution  nor  any  other  instrument  by  which  any  such  pledge or
  assignment is created need be recorded, and no filing  with  respect  to

  such  pledge  or  assignment  need  be made under the uniform commercial
  code.
    § 20. Reserve funds and appropriations. (1) The corporation may create
  and  establish  one  or  more  reserve funds to be known as debt service
  reserve funds and may  pay  into  such  reserve  funds  (a)  any  moneys
  appropriated  and  made  available by the state for the purposes of such
  funds, (b) any proceeds of  sale  of  bonds  and  notes  to  the  extent
  provided  in  the resolution of the corporation authorizing the issuance
  thereof, and (c) any other moneys which may be  made  available  to  the
  corporation  for  the  purposes  of  such funds from any other source or
  sources. The moneys held in or credited to any debt service reserve fund
  established under this  subdivision,  except  as  hereinafter  provided,
  shall  be  used  solely for the payment of the principal of bonds of the
  corporation secured by such  reserve  fund,  as  the  same  mature,  the
  purchase  of  such  bonds of the corporation, the payment of interest on
  such bonds of the corporation or the payment of any  redemption  premium
  required  to  be  paid  when  such bonds are redeemed prior to maturity;
  provided, however, that moneys in any such fund shall not  be  withdrawn
  therefrom  at any time in such amount as would reduce the amount of such
  fund to less than the maximum amount of principal and interest  maturing
  and  becoming  due  in  any succeeding calendar year on the bonds of the
  corporation then outstanding and secured by such  reserve  fund,  except
  for  the  purpose  of  paying principal and interest on the bonds of the
  corporation secured by such reserve fund maturing and becoming  due  and
  for  the  payment  of  which  other  moneys  of  the corporation are not
  available. Any income or interest earned by, or increment to,  any  such
  debt  service  reserve  fund  due  to  the  investment  thereof  may  be
  transferred to any other fund or  account  of  the  corporation  to  the
  extent  it  does not reduce the amount of such debt service reserve fund
  below the maximum amount of principal and interest maturing and becoming
  due in any succeeding calendar year on all bonds of the corporation then
  outstanding and secured by such reserve fund.
    (2) The corporation shall not issue bonds at any time if  the  maximum
  amount  of  principal  and  interest  maturing  and  becoming  due  in a
  succeeding calendar year on the bonds outstanding and then to be  issued
  and  secured  by  a  debt service reserve fund will exceed the amount of
  such reserve fund at the time of issuance, unless  the  corporation,  at
  the  time  of issuance of such bonds, shall deposit in such reserve fund
  from the proceeds of the bonds so to be issued, or otherwise, an  amount
  which  together  with  the amount then in such reserve fund, will be not
  less than the maximum amount of  principal  and  interest  maturing  and
  becoming  due  in  any  succeeding calendar year on the bonds then to be
  issued and on all other bonds of the corporation  then  outstanding  and
  secured by such reserve fund.
    (3)  To assure the continued operation and solvency of the corporation
  for the carrying out of the public purposes of  this  act  provision  is
  made  in  subdivision  one  of this section for the accumulation in each
  debt service reserve fund of an amount equal to the  maximum  amount  of
  principal  and  interest  maturing  and  becoming  due in any succeeding
  calendar year on all bonds  of  the  corporation  then  outstanding  and
  secured by such reserve fund. In order further to assure the maintenance
  of  such debt service reserve funds, there shall be annually apportioned
  and paid to the corporation for deposit in  each  debt  service  reserve
  fund  such  sum,  if  any,  as shall be certified by the chairman of the
  corporation to  the  governor  and  state  director  of  the  budget  as
  necessary to restore such reserve fund to an amount equal to the maximum
  amount  of  principal  and  interest  maturing  and  becoming due in any
  succeeding  calendar  year  on  the  bonds  of  the   corporation   then

  outstanding  and  secured  by  such  reserve  fund.  The chairman of the
  corporation shall annually,  on  or  before  December  first,  make  and
  deliver to the governor and state director of the budget his certificate
  stating  the  sum,  if  any,  required to restore each such debt service
  reserve fund to the amount aforesaid, and the sum or sums so  certified,
  if any, shall be apportioned and paid to the corporation during the then
  current state fiscal year.
    (4)  In  computing  any  debt service reserve fund for the purposes of
  this section, securities in which all or a portion of such reserve  fund
  shall  be  invested shall be valued at par, or if purchased at less than
  par, at their cost to the corporation.
    (5) With respect to  any  project,  the  corporation  may  create  and
  establish  a  special  fund  to be known as the project reserve fund and
  deposit therein (a) any moneys appropriated and made  available  by  the
  state  for  the  purposes  of  such  fund,  (b)  such  amount  as may be
  determined by the corporation  in  connection  with  any  lease  by  the
  corporation  to  others to be charged to such lessee for deposit in such
  fund, and (c) any other moneys  which  may  be  made  available  to  the
  corporation  for  the  purpose  of  such  fund  from any other source or
  sources. All moneys held in or credited  to  any  project  reserve  fund
  shall  be first used for the payment of the principal of and interest on
  the bonds or notes of the corporation issued for the project secured  by
  such  project  reserve  fund  in  the  event  that  other  moneys of the
  corporation, other than moneys held in the debt  service  reserve  fund,
  are  not available for such purpose. Upon the retirement of the bonds or
  notes of the corporation issued for the project secured by such  project
  reserve fund, moneys so held in such fund may be used by the corporation
  for any lawful purpose.
    §  21.  Trust  funds. All moneys received pursuant to the authority of
  this act, whether as proceeds from the sale of  bonds  or  notes  or  as
  revenues,  receipts  or  income, shall be deemed to be trust funds to be
  held and applied solely as provided in the proceedings under which  such
  bonds  or  notes  are  authorized.  Any officer with whom or any bank or
  trust company with which such  moneys  shall  be  deposited  as  trustee
  thereof  shall hold and apply the same for the purposes thereof, subject
  to such provisions as this act and the proceedings authorizing the bonds
  or notes of any issue or the trust  agreement  securing  such  bonds  or
  notes may provide.
    §  22.  Exemption from taxation. The exercise of the powers granted by
  this act will be in all respects for the benefit of the people  of  this
  state,  for  the increase of their commerce, welfare and prosperity, and
  for the improvement of their health  and  living  conditions,  and  will
  constitute the performance of an essential governmental function and the
  corporation and its subsidiaries shall not be required to pay any taxes,
  other  than  assessments for local improvements, upon or in respect of a
  project or of any property or moneys of the corporation or  any  of  its
  subsidiaries, levied by any municipality or political subdivision of the
  state,  nor shall the corporation or its subsidiaries be required to pay
  state  taxes  of  any  kind,  and  the  corporation,  its  subsidiaries,
  projects,  property and moneys and, except for estate and gift taxes and
  taxes on transfers, any bonds or notes issued under  the  provisions  of
  this  act  and  the  income  therefrom,  shall at all times be free from
  taxation of every kind by the state and by the  municipalities  and  all
  other political subdivisions of the state.
    § 23. Notes and bonds as legal investments. The notes and bonds of the
  corporation  are hereby made securities in which all public officers and
  bodies of this state and all municipalities and municipal  subdivisions,
  all  insurance companies and associations, and other persons carrying on

  an insurance business, all  banks,  bankers,  trust  companies,  savings
  banks and savings associations, including savings and loan associations,
  building  and  loan associations, investment companies and other persons
  carrying   on   a   banking  business,  all  administrators,  guardians,
  executors,  trustees  and  other  fiduciaries,  and  all  other  persons
  whatsoever who are now or may hereafter be authorized to invest in bonds
  or  other  obligations  of  the  state,  may properly and legally invest
  funds, including capital, in their control or belonging to them.
    § 24. Agreement with the state. The state does hereby  pledge  to  and
  agree with the holders of any bonds or notes issued under this act, that
  the  state  will  not  limit  or  alter  the rights hereby vested in the
  corporation to fulfill the terms of any agreements made with the holders
  thereof, or in any way impair the rights and remedies  of  such  holders
  until  such  bonds  or  notes,  together with the interest thereon, with
  interest on any unpaid installments  of  interest,  and  all  costs  and
  expenses  in connection with any action or proceeding by or on behalf of
  such  holders,  are  fully  met  and  discharged.  The  corporation   is
  authorized  to  include  this  pledge  and agreement of the state in any
  agreement with the holders of such bonds or notes.
    § 25. State's right to require redemption  of  bonds.  Notwithstanding
  and  in addition to any provisions for the redemption of bonds which may
  be contained in any contract with the holders of the  bonds,  the  state
  may,  upon furnishing sufficient funds therefor, require the corporation
  to redeem, prior to maturity, as a whole, any  issue  of  bonds  on  any
  interest  payment  date not less than twenty years after the date of the
  bonds of such issue at one hundred five per centum of their  face  value
  and  accrued  interest  or  at  such  lower  redemption  price as may be
  provided in the bonds in case of the redemption thereof as  a  whole  on
  the  redemption  date.  Notice  of such redemption shall be published at
  least twice in  at  least  two  newspapers  publishing  and  circulating
  respectively in the cities of Albany and New York, the first publication
  to be at least thirty days before the date of redemption. The provisions
  of  this  section relating to the state's right to require redemption of
  bonds shall not apply to state-supported debt,  as  defined  by  section
  67-a  of  the  state  finance  law,  issued  by  the  corporation.  Such
  corporation bonds shall remain subject to  redemption  pursuant  to  any
  contract with the holders of such bonds.
    §  26. State payments to municipalities and political subdivisions. In
  order to prevent undue loss of revenues to municipalities and  political
  subdivisions, there shall be annually apportioned and paid by the state,
  during  the  then  current  state  fiscal  year,  to any municipality or
  political subdivision in which an industrial project is located,  a  sum
  equal  to  one  hundred  per  centum of the average annual real property
  taxes paid or due to such municipality or political subdivision  on  the
  real property constituting the project site for three years prior to the
  time  of its acquisition by the corporation or subsidiary thereof, or in
  the case of real property acquired by  the  corporation  from  an  urban
  renewal  agency  or from a municipality which acquired such property for
  urban renewal purposes, for  three  years  prior  to  the  time  of  its
  acquisition  by  such urban renewal agency or municipality. The chairman
  of the corporation shall annually, on or before December first, make and
  deliver to the governor and  director  of  the  budget  his  certificate
  stating  the  sum,  if any, required to be paid to each municipality and
  political  subdivision  by  reason  of  tax  exemptions  for  industrial
  projects  received  pursuant  to section twenty-two of this act, and the
  sum or sums so certified, if any, shall be apportioned and paid to  each
  such  municipality  and  political subdivision, as provided herein. Such
  apportionment and payment shall also be made to  each  municipality  and

  political   subdivision  in  which  is  located  real  property  of  the
  corporation as to which no  project  findings  have  been  made  by  the
  corporation,  pursuant  to  section  ten hereof, and the chairman of the
  corporation  shall  certify  the  sums required to be paid in respect of
  such real property, and the state shall apportion and pay such sums,  if
  any, in the manner provided herein.
    §  27. Remedies of noteholders and bondholders.  (1) In the event that
  the corporation shall default in the payment of principal of or interest
  on any issue of notes or bonds after the same shall become due,  whether
  at maturity or upon call for redemption, and such default shall continue
  for  a period of thirty days, or in the event that the corporation shall
  fail or refuse to comply with the  provisions  of  this  act,  or  shall
  default  in any agreement made with the holders of any issue of notes or
  bonds, the holders of twenty-five  per  centum  in  aggregate  principal
  amount  of  the  notes  or  bonds  of  such  issue  then outstanding, by
  instrument or instruments filed in the office of the clerk of the county
  of Albany and approved or acknowledged in the same manner as a  deed  to
  be  recorded,  may  appoint  a  trustee to represent the holders of such
  notes or bonds for the purposes herein provided.
    (2) Such trustee may, and upon  written  request  of  the  holders  of
  twenty-five  per  centum in principal amount of such notes or bonds then
  outstanding shall, in his or its own name:
    (a) by suit,  action  or  proceeding  in  accordance  with  the  civil
  practice  law  and  rules,  enforce  all  rights  of  the noteholders or
  bondholders,  to  require  the  corporation  to  carry  out  any   other
  agreements  with  the  holders of such notes or bonds and to perform its
  duties under this act;
    (b) bring suit upon such notes or bonds;
    (c) by action or suit, require the corporation to  account  as  if  it
  were  the  trustee  of an express trust for the holders of such notes or
  bonds;
    (d) by action or suit, enjoin any acts or things which may be unlawful
  or in violation of the rights of the holders of such notes or bonds;
    (e) declare all such notes or  bonds  due  and  payable,  and  if  all
  defaults  shall  be  made good, then, with the consent of the holders of
  twenty-five per centum of the principal amount of such  notes  or  bonds
  then outstanding, to annul such declaration and its consequences.
    (3)  Such  trustee shall in addition to the foregoing have and possess
  all of the powers necessary or  appropriate  for  the  exercise  of  any
  functions  specifically  set  forth  herein  or  incident to the general
  representation of bondholders or  noteholders  in  the  enforcement  and
  protection of their rights.
    (4)  The  supreme court shall have jurisdiction of any suit, action or
  proceeding by the trustee on behalf of such noteholders or  bondholders.
  The  venue  of  any such suit, action or proceeding shall be laid in the
  county in which the principal office of the corporation is located.
    (5) Before declaring the principal of notes or bonds due and  payable,
  the  trustee  shall  first  give  thirty  days  notice in writing to the
  governor, to the corporation, and to the attorney general of the state.
    § 28. Monies of the corporation. (1) All monies  of  the  corporation,
  except as otherwise authorized or provided in this act, shall be paid to
  the  commissioner  of  taxation and finance as agent of the corporation,
  who shall not commingle such monies with any other monies.  Such  monies
  shall be deposited in a separate bank account or accounts. The monies in
  such  accounts shall be paid out on checks signed by the commissioner of
  taxation and finance on requisition of the chairman of  the  corporation
  or  of  such  other  officer or employee or officers or employees as the
  corporation shall authorize to make such requisition.  All  deposits  of

  such  monies  shall,  if  required  by  the commissioner of taxation and
  finance or the corporation, be secured  by  obligations  of  the  United
  States  or  of  the  state  of  a market value equal at all times to the
  amount  of the deposit, and all banks and trust companies are authorized
  to give such security for such deposits.
    Notwithstanding the provisions of this section, the corporation  shall
  have power to contract with the holders of any of its notes or bonds, as
  to  the  custody,  collection,  securing, investment, and payment of any
  monies of the corporation, of any monies held in trust or otherwise  for
  the  payment  of  notes or bonds, and to carry out such contract. Monies
  held in trust or otherwise for the payment of notes or bonds or  in  any
  way  to secure notes or bonds and deposits of such monies may be secured
  in the same manner as monies of the corporation, and all banks and trust
  companies are authorized to give such security for such deposits.
    (2) Subject to agreements with noteholders  and  bondholders  and  the
  approval of the comptroller, the corporation shall prescribe a system of
  accounts.
    (3)  The  comptroller,  or  his  legally authorized representative, is
  hereby authorized and empowered from time to time to examine  the  books
  and  accounts  of the corporation including its receipts, disbursements,
  contracts, reserve funds, sinking  funds,  investments,  and  any  other
  matters relating to its financial standing. Such an examination shall be
  conducted  by  the  comptroller  at  least once in every five years; the
  comptroller is authorized, however, to accept from the  corporation,  in
  lieu  of  such  an examination, an external examination of its books and
  accounts made at the request of the corporation.
    (4) The corporation shall submit to  the  governor,  chairman  of  the
  senate  finance  committee,  chairman  of  the  assembly  ways and means
  committee and the comptroller, within thirty days of the receipt thereof
  by the corporation, a copy of the report of every  external  examination
  of  the  books  and accounts of the corporation other than copies of the
  reports of such examinations made by the comptroller.
    §  29.  Assistance  by  state  officers,   departments,   boards   and
  commissions. (1) The department of audit and control, department of law,
  and all other state agencies may render such services to the corporation
  within   their   respective   functions  as  may  be  requested  by  the
  corporation.
    (2) Upon request of  the  corporation,  any  state  agency  is  hereby
  authorized  and  empowered  to transfer to the corporation such officers
  and employees as it may deem necessary from time to time to  assist  the
  corporation  in  carrying  out  its functions and duties under this act.
  Officers and employees so transferred shall not lose their civil service
  status or rights.
    (3) In order most effectively to carry out its corporate purposes, the
  corporation shall assist and cooperate with the  corporation  for  urban
  development  and  research  of  New  York, created by the New York state
  urban development and research act.
    §  30.  Reports  and  evaluations.  (a)  Annual  fiscal  report.   The
  corporation  shall  submit  to  the governor, the chairman of the senate
  finance  committee,  the  chairman  of  the  assembly  ways  and   means
  committee,  the  comptroller  and  the  director  of the budget within 6
  months after the end of its fiscal year, a complete and detailed  report
  setting  forth: (1) its operations and accomplishments; (2) its receipts
  and  expenditures  during  such  fiscal  year  in  accordance  with  the
  categories  or  classifications  established  by the corporation for its
  operating and capital  outlay  purposes,  including  a  listing  of  all
  private consultants engaged by the corporation on a contract basis and a
  statement  of the total amount paid to each such private consultant; (3)

  its assets and liabilities at the end of its fiscal  year,  including  a
  schedule  of its leases and mortgages and the status of reserve, special
  or other funds; and (4) a schedule of its bonds and notes outstanding at
  the  end  of  its  fiscal year, together with a statement of the amounts
  redeemed and incurred during such fiscal year.
    (b) Annual program report. The corporation shall report on  an  annual
  basis  beginning  October  1, 2005, and on each October 1 thereafter, to
  the governor, the chairpersons of  the  senate  committees  on  finance,
  commerce,  economic  development  and  small business, and corporations,
  authorities and commissions, the chairpersons of the assembly committees
  on ways and means, economic  development,  job  creation,  commerce  and
  industry,  corporations, authorities and commissions, and small business
  on each of the financial assistance programs, and for each program, each
  category of assistance administered by the corporation, identifying each
  proposal for assistance through such program for which  the  corporation
  has received a formal application or otherwise has begun to undertake an
  analysis.
    (1)  For  those requests which are currently being evaluated but which
  have not yet been approved such description shall include,  but  not  be
  limited  to,  the  name  and  location  of  the applicant, the amount of
  assistance requested, the date of  receipt  of  such  request,  and  the
  status of such request.
    (2)   In  providing  such  report,  where  necessary  to  promote  the
  development of proposed projects, the corporation may delete  references
  to  the specific names of the participants, instead making references to
  them in some other form so as  to  make  it  possible  to  identify  the
  progress of specific proposals.
    (3)  Such  report  shall  provide a breakdown, for each of the regions
  established pursuant to section 230 of the economic development law,  of
  proposals  for assistance through each program. In addition, such report
  shall  summarize,  by  program,  the  data  reported  pursuant  to  this
  paragraph.
    (4)  For  those  requests  which  have been evaluated and for which no
  further action has  been  recommended,  the  corporation  shall  present
  summary data indicating why no further action was taken.
    (5)  The  corporation  shall make available to each of the legislative
  committees specified in  this  subdivision,  a  copy  of  the  materials
  provided to its board prior to each board meeting.
    (c)  Evaluations. (1) In addition to any other requirements imposed by
  the act or otherwise regarding evaluations of programs  administered  by
  the  corporation,  each  evaluation shall include an analysis of the job
  creation effect of such program, the number  of  small  businesses  that
  received  assistance,  the number of minority and women-owned firms that
  received assistance, the number of projects undertaken in distressed and
  highly  distressed  communities,  and,  if  applicable,  the   repayment
  experience of borrowers of funds from the corporation.
    (2)  (i)  In  the  case of any assistance programs administered by the
  corporation  for  which  independent  evaluations  are   not   otherwise
  required,  the  corporation  shall submit to the director of the budget,
  the chairperson of the senate finance committee and the  chairperson  of
  the  assembly  ways  and  means committee an evaluation of such programs
  prepared by an entity independent of the corporation.  Such  evaluations
  shall  be  submitted  by September 1, 2005 and by September 1 every four
  years thereafter.
    (ii) Between evaluation due dates, the corporation shall maintain  the
  necessary   records   and  data  required  to  satisfy  such  evaluation
  requirements and to  satisfy  information  requests  received  from  the
  director  of the budget, the chairperson of the senate finance committee

  and the chairperson of the assembly ways  and  means  committee  between
  such evaluation due dates.
    § 30-a. With respect to applications for assistance submitted pursuant
  to this act:
    (a)  The  corporation  shall,  upon receipt of an application or other
  formal request for funding for  any  project,  provide  notice  of  such
  application  or  request  within ten days of such receipt to the senator
  and member of assembly representing the district in which  such  project
  is to be located;
    (b)  The  corporation  shall  provide  copies  of  all  correspondence
  relating to each such application to such senator or member of  assembly
  on  a  timely basis; provided, however, that proprietary information may
  be withheld from such correspondence  if  such  senator  and  member  of
  assembly is given notice that such information has been withheld;
    (c)  Such senators and members of assembly shall be provided notice of
  all proceedings relating to such application and  shall  be  invited  to
  participate  in  such  proceedings.  A copy of such notice shall also be
  provided to the designees of the temporary president of the  senate  and
  the speaker of assembly;
    (d)  Such  senators  and  members  of  assembly shall be provided with
  notice of the final disposition of the application  by  the  corporation
  and the reasons for such disposition;
    (e)  In  order  to  ensure  that  the  funds appropriated for existing
  statutory programs are approved  in  a  equitable,  ratable  and  timely
  manner, the corporation shall:
    (1)  require  all  projects,  including  those  in  an amount of fifty
  thousand dollars or less, be approved by  the  governing  board  of  the
  corporation  and  included in the agenda and the minutes of the meetings
  of the board, accompanied by a summary of the proposed project  and  the
  source of funds used to finance the project; and
    (2)  require  projects to be financed out of the empire state economic
  development fund be approved generally in amounts which are proportional
  to amounts appropriated for the urban and community development program,
  and the  minority  and  women-owned  business  development  and  lending
  program;
    (f)  The  corporation  shall accept no funds through transfer from the
  department of economic development for personal or  nonpersonal  service
  expenses,  except  for  economic  development  program  funds where such
  transfer will  facilitate  the  prompt  and  effective  distribution  of
  program  funds  to  projects, provided that those funds are used for the
  statutory purposes for which they were appropriated to the department of
  economic development;
    (g) No later than twenty days  after  the  end  of  each  fiscal  year
  quarter, the chairman of the urban development corporation shall:
    (1)  report  to  the  senate  majority  leader  and the speaker of the
  assembly on the status of all economic development programs administered
  during the current fiscal year. Such report shall  include  but  not  be
  limited to:
    (A)  a  cumulative summary of commitments and disbursements by year of
  original appropriation;
    (B) the geographic distribution of approved projects;
    (C) the extent to which approved projects are expected  to  create  or
  retain jobs in New York state; and
    (D)  the  impact of approved projects, where quantified and available,
  on distressed urban  and  rural  communities,  small-  and  medium-sized
  businesses, and strategic industries.

    (2)  Copies  of such report shall also be provided to the designees of
  the temporary president of the senate and the speaker of the assembly in
  both paper and electronic format;
    (h)  If:  (1)  such  report is not submitted on or before the required
  date, or (2) the corporation has failed to undertake a good faith effort
  to comply with this act, upon a written determination of  non-compliance
  issued,  not  more  than quarterly, by either the temporary president of
  the senate or speaker of the assembly, the corporation  agrees  that  it
  shall  approve  no  further  project  commitments  from the empire state
  economic development fund and no state funds appropriated from the local
  assistance account shall  be  allocated  to  the  corporation  for  such
  commitments  until  such report is submitted or the corporation provides
  evidence of good faith  effort  to  be  in  compliance  with  provisions
  hereof; and
    (i)  Upon  the issuance of such a determination of non-compliance, the
  corporation shall undertake the  necessary  acts  to  comply  with  this
  agreement  and shall provide evidence of such compliance within ten days
  of receipt of such determination.
    § 31. Court proceedings; preferences; venue. Any action or  proceeding
  to  which  the corporation or the people of the state of New York may be
  parties, in which any question arises as to the validity  of  this  act,
  shall be preferred over all other civil causes except election causes in
  all courts of the state of New York and shall be heard and determined in
  preference  to  all other civil business pending therein except election
  causes, irrespective of position on the calendar.  The  same  preference
  shall  be  granted upon application of counsel to the corporation in any
  action or proceeding questioning the validity of this act  in  which  he
  may  be allowed to intervene. The venue of any such action or proceeding
  shall be laid in the  county  in  which  the  principal  office  of  the
  corporation is located.
    §  31-a. Actions against corporation. Except in an action for wrongful
  death, in any case founded upon tort a notice of claim shall be required
  as a condition precedent to the commencement of  an  action  or  special
  proceeding  against  the corporation, any of it subsidiary corporations,
  or any officer, appointee or employee thereof,  and  the  provisions  of
  section  fifty-e of the general municipal law shall govern the giving of
  such notice. No such action shall be commenced more than  one  year  and
  ninety  days  after  the cause of action therefor shall have accrued. An
  action for wrongful death shall be  commenced  in  accordance  with  the
  notice  of  claim  and  time  limitation  provisions  of title eleven of
  article nine of the public authorities law.
    § 32. Special provisions relating to directors of the corporation  and
  members   of  the  business  advisory  council  for  urban  development.
  Notwithstanding  the  provisions   of   any   other   law,   any   state
  instrumentality,  including  any  state  agency,  trust  fund  or public
  benefit corporation other than the corporation, may purchase from,  sell
  to,  borrow  from,  loan  to,  contract  with or otherwise deal with any
  corporation, trust, association, partnership or other  entity  in  which
  any  director  of the corporation or any member of the business advisory
  council for urban development, created by section four of this act,  has
  a financial interest, direct or indirect, and the corporation may engage
  in  any such transaction with any other state instrumentality with which
  any director of the corporation is affiliated  as  a  state  officer  or
  employee,  provided  that  prior  to  such  transaction such interest or
  affiliation is disclosed to such  other  state  instrumentality  and  is
  disclosed  in  the minutes of the corporation, and provided further that
  no director having such an affiliation (except such an affiliation  with
  a subsidiary corporation of the corporation organized in accordance with

  section  twelve  of  this  act  or  with  any  authority  or  commission
  heretofore  or  hereafter  continued  or  created   under   the   public
  authorities  law)  may  participate  in  any decision of the corporation
  affecting such transaction.
    § 33. Inconsistent provisions of other laws superseded. Insofar as the
  provisions of this act are inconsistent with the provisions of any other
  law,  general,  special  or  local,  the provisions of this act shall be
  controlling.
    § 34. Construction. This act, being necessary for the welfare  of  the
  state  and  its  inhabitants,  shall  be  liberally  construed  so as to
  effectuate its purposes.
    § 35. Separability. If any clause,  sentence,  paragraph,  section  or
  part   of  this  act  shall  be  adjudged  by  any  court  of  competent
  jurisdiction to be invalid, such judgment shall not  affect,  impair  or
  invalidate the remainder thereof, but shall be confined in its operation
  to  the  clause,  sentence,  paragraph, section or part thereof directly
  involved in the controversy in  which  such  judgment  shall  have  been
  rendered.
    § 36. Limitation on new projects
    The  corporation  shall  not expend any proceeds of the sale of assets
  to, or borrowings from, the New York state project  finance  agency  for
  the  construction  or  development  of any new project which on February
  twenty-fifth, nineteen hundred seventy-five, was not under  construction
  by  the  corporation,  or  the  subject of a contract or legally binding
  commitment for the construction or financing thereof by the corporation,
  except for expenditures related to the prompt and orderly termination of
  the corporation's activities in relation to a project that was not under
  construction or subject to such a contract or legally binding commitment
  on that date.
    § 37. Assistance;  application  and  evaluation,  generally.  (1)  The
  corporation  shall  develop  guidelines  for  application for assistance
  through each of  its  programs  which  are  consistent  with  the  rules
  published  pursuant to section 9-c of this act and pursuant to the state
  administrative procedure act. Guidelines shall provide clear guidance to
  potential applicants as to criteria for program eligibility,  and  shall
  specify criteria used by the corporation in evaluating applications.
    (2)  The  corporation  shall prepare forms, application procedures and
  evaluation processes which are consistent with the rules and  guidelines
  promulgated  by the corporation and which are developed with the goal of
  making them easily understandable to applicants.
    (3) The corporation shall  make  available,  with  the  department  of
  economic  development,  applications and guidance to applicants for each
  of its programs of assistance at the regional offices of the  department
  of economic development.
    (4)  The  corporation shall establish, by rule, procedures for (i) the
  notification to each applicant for assistance of  the  receipt  of  such
  application;  (ii) notification to each applicant for assistance of such
  additional materials as the corporation requires for evaluation of  such
  application;  and (iii) periodic notifications not exceeding thirty days
  apart to each applicant of the status of  such  application.  Such  rule
  shall  specify  uniform  time periods within which the corporation shall
  make the notifications required by this paragraph.
    (5) Whenever possible, the corporation shall render a determination on
  an application within thirty working days of the receipt of a  completed
  application  including  necessary  documentation.  In  the  event that a
  determination cannot be reached within the thirty  working  day  period,
  the corporation shall submit to the applicant a statement of the reasons

  for such delay upon or prior to the expiration of the thirty working day
  period.
    (6)  Upon  approval  of  an  application for financial assistance, the
  corporation shall inform the recipient of all steps which must be  taken
  in order to receive the promised assistance. The requirements imposed by
  the  corporation  shall be pursuant to statute or rules adopted pursuant
  to the state administrative procedure act.
    § 38. Small  business  and  minority-owned  and  women-owned  business
  enterprises   transportation  capital  assistance  and  guaranteed  loan
  program. 1. To  provide  financial  assistance  to  small  business  and
  minority-owned   and   women-owned   business   enterprises  engaged  in
  government sponsored, transportation related construction projects,  the
  corporation  shall  establish  a  small  business and minority-owned and
  women-owned  business  enterprise  transportation   capital   assistance
  revolving  loan  fund  which  shall  provide loans or loan guarantees to
  small business and minority-owned and women-owned business  enterprises.
  For purposes of this section: (a) the term small business shall have the
  same  meaning  as  defined  in  section  one  hundred  thirty-one of the
  economic development law and (b) the term project shall mean  a  project
  of  state  agency  or  authority  that  sponsors  transportation related
  construction  projects  and  participates  in  this  program   and   any
  definition of project contained elsewhere in this act shall not apply.
    2.  Such  loans,  or  loan  guarantees for loans made by federally and
  state  chartered  credit  institutions,  financial   institutions,   and
  federally   insured   banking   organizations   to  small  business  and
  minority-owned and women-owned business enterprises, shall  be  used  to
  (a)   enable  such  businesses,  through  the  acquisition,  leasing  or
  improvement of real property, machinery or  equipment,  or  through  the
  provision   of   working   capital   to  secure  service,  commodity  or
  construction contracts; (b) restore working capital to  such  businesses
  which  have  successfully  completed  work  under  a  contract but whose
  liquidity has been adversely affected by problems resulting from delayed
  payments; and (c) ensure the completion of the work  associated  with  a
  governmental  service,  commodity  or  construction contract in order to
  prevent default on such contract.
    3. (a) To be  eligible  for  such  loans  or  loan  guarantees  (i)  a
  minority-owned or women-owned business enterprise must be certified as a
  minority-owned  or  women-owned  business enterprise pursuant to article
  15-A of the executive law; and (ii) a small business or a minority-owned
  or women-owned business enterprise shall have a contract or sub-contract
  to  provide  goods  or  services  related  to  a  government  sponsored,
  transportation related construction project.
    (b)  Only  such  business enterprises referred to the corporation by a
  written application  of  a  state  agency  or  authority  that  sponsors
  transportation  related  construction  projects  shall  be  eligible for
  program assistance.  Such  assistance  shall  be  provided  to  such  an
  enterprise  only  in  connection with its performance as a contractor or
  sub-contractor on a  specific  transportation  related  project  of  the
  referring  agency or authority. In order for such an agency or authority
  to refer such enterprises to the corporation, such agency  or  authority
  shall  enter  into  a  master  agreement  with  the corporation covering
  procedures  and  requirements  for  providing  program  assistance.  The
  corporation  shall  determine whether or not to approve such an agency's
  or authority's written application for  program  assistance  to  such  a
  business  within  twenty  business  days of the corporation's receipt of
  such application. If it approves the application, the  corporation  will
  provide assistance pursuant to the applicable master agreement.

    4.  The  corporation  shall  give  preference  to  minority-owned  and
  women-owned  business  enterprises  in  making  such  loans   and   loan
  guarantees  and  shall  establish  such  other  criteria  as it may deem
  necessary for this program and for any required  amount  that  shall  be
  held in reserve for any guarantees made under this program.
    5. Notwithstanding any inconsistent provision of law, general, special
  or  local,  including pursuant to capital projects budget appropriations
  or  reappropriations,  where  applicable,  the  corporation  is   hereby
  authorized  to  enter  into  such agreements as may be necessary for the
  operation and administration of a small business and minority-owned  and
  women-owned  business  enterprises transportation capital assistance and
  guaranteed loan program.
    6. The corporation is authorized to establish a  revolving  loan  fund
  account  into  which  funds  may be received and from which funds may be
  expended for the aforementioned purposes.
    7. The provisions of  section  ten  and  subdivision  two  of  section
  sixteen  of  this  act shall not apply to assistance provided under this
  program.
    § 39.  Lease  and  operation  of  seventh  regiment  armory.  (a)  The
  corporation  is  hereby authorized to act on behalf of the state and the
  division of military  and  naval  affairs  to  enter  into  a  lease  or
  subsequent  leases  and  the management agreement on behalf of the state
  and the division  with  a  lessee,  subsequent  lessee  or  the  manager
  pursuant to the terms of the management agreement in order to accomplish
  the  purposes  of this section. The leasing of the armory to a lessee or
  subsequent lessee and the entrance into the management agreement and the
  repair, restoration  and  refurbishment  of  the  armory  and  operation
  thereof  by  a  lessee or subsequent lessee for cultural and other civic
  uses pursuant to the lease is hereby declared to be a  valid  use  under
  the city lease, and is undertaken for public purposes.
    (b)  The  lease  with a lessee or subsequent lessee authorized by this
  section shall require a lessee  or  subsequent  lessee  to  undertake  a
  program  of  repair,  restoration and refurbishment of the armory and to
  manage and use the same as a facility for cultural and other civic uses.
  The lease shall demise all portions  of  the  armory  other  than  those
  reserved  for  a  homeless shelter for women operated by the city of New
  York pursuant to agreement with the state  and  for  that  reserved  for
  military  use  by the division. The portion of the premises allocated to
  the shelter for homeless women shall be sufficient  and  suitable  space
  for  the  current and uninterrupted operation of the shelter by the city
  of New York. The division shall cause the 107th corps support  group  or
  its  lineal  descendent  to  maintain  military  use within the reserved
  portions of the  armory.  The  division,  and  the  city  of  New  York,
  respectively, shall be responsible to repair and maintain their reserved
  premises,  including  the costs of renovation and uninterrupted use, and
  to pay an annual common maintenance charge to  a  lessee  or  subsequent
  lessee  to cover allocated costs of repair, maintenance and operation of
  the common portions of the armory. The lessee or subsequent lessee shall
  be required to apply all revenues generated by operations at the  armory
  to  pay  or  provide  for  costs of repairs, restoration, refurbishment,
  operating, maintenance and  programming  of  the  armory  and  the  uses
  therein  and  the  activities  of  the  lessee or subsequent lessee with
  respect thereto.
    (c) The corporation, in carrying  out  its  authorization  under  this
  section  may  exercise  all  of the power granted it in law, as if fully
  enumerated herein. Without limiting the generality of the foregoing, the
  powers granted to the corporation under sections sixteen and  twenty-two
  of  this  act shall be utilized by the corporation in its administration

  of the lease,  and  shall  be  applicable  in  respect  to  the  repair,
  restoration,  refurbishment  and operation of the armory pursuant to the
  lease.
    (d)  In  no  event  shall  the lessee or subsequent lessee be deemed a
  state actor or an agent or an instrumentality of the state by reason  of
  the  lease  or  this  section  or any of the activities of the lessee or
  subsequent lessee with respect to the armory pursuant to  the  lease  or
  this section.
    (e)  Except  with  respect  to  military  use  or  periods of civil or
  military emergency, for any action involving the armory that may have  a
  significant effect on the environment, the corporation shall be the lead
  agency  having  principal  responsibility  for carrying out or approving
  such  action  for  purposes  of  article  eight  of  the   environmental
  conservation law.
    §  41. International computer chip research and development center. 1.
  Notwithstanding the provisions of any other law  to  the  contrary,  the
  urban  development  corporation  is  hereby authorized to issue bonds or
  notes in one or more series for the purpose of funding project costs  at
  the  College  of  Nanoscale Science and Engineering of the University at
  Albany - State  University  of  New  York  for  the  development  and/or
  expansion  of  an  international  computer chip research and development
  center, including but not limited to the  construction  and  renovation,
  purchase  and  installation of equipment or other state costs associated
  with the project at the College of Nanoscale Science and Engineering  of
  the  University  at Albany - State University of New York. The aggregate
  principal amount of bonds authorized  to  be  issued  pursuant  to  this
  section  shall not exceed three hundred million dollars, excluding bonds
  issued to fund one or more debt service reserve funds, to pay  costs  of
  issuance of such bonds, and bonds or notes issued to refund or otherwise
  repay such bonds or notes previously issued. Such bonds and notes of the
  corporation shall not be a debt of the state, and the state shall not be
  liable  thereon,  nor  shall they be payable out of any funds other than
  those appropriated by  the  state  to  the  corporation  for  principal,
  interest,  and  related expenses pursuant to a service contract and such
  bonds and notes shall contain on the face thereof a  statement  to  such
  effect. Except for purposes of complying with the internal revenue code,
  any  interest  income  earned on bond proceeds shall only be used to pay
  debt service on such bonds.
    2. Notwithstanding any other provision of  law  to  the  contrary,  in
  order  to  assist  the  corporation  in undertaking the financing of the
  development and/or expansion of an international computer chip  research
  and  development  center,  including but not limited to the construction
  and renovation, purchase and installation of equipment, or  other  state
  costs  associated with the project, the director of the budget is hereby
  authorized to  enter  into  one  or  more  service  contracts  with  the
  corporation,  none  of which shall exceed thirty years in duration, upon
  such terms and  conditions  as  the  director  of  the  budget  and  the
  corporation  agree, so as to annually provide to the corporation, in the
  aggregate, a sum not to exceed  the  principal,  interest,  and  related
  expenses required for such bonds and notes. Any service contract entered
  into  pursuant  to this section shall provide that the obligation of the
  state to pay the amount therein provided shall not constitute a debt  of
  the  state  within  the  meaning  of  any  constitutional  or  statutory
  provision and shall be deemed executory only to  the  extent  of  monies
  available  and  that  no liability shall be incurred by the state beyond
  the monies available for such purpose, subject to  annual  appropriation
  by the legislature. Any such contract or any payments made or to be made

  thereunder  may  be  assigned and pledged by the corporation as security
  for its bonds and notes, as authorized by this act.
    3.  The  corporation,  in  conjunction  with  the College of Nanoscale
  Science and Engineering of the University at Albany-State University  of
  New  York,  shall  develop a program and financing plan for the project.
  Upon certification by the corporation, copies  of  such  plan  shall  be
  filed  with  the director of the budget, the chair of the senate finance
  committee and the chair  of  the  assembly  ways  and  means  committee.
  Further,  the corporation shall provide an annual report to the director
  of the budget, chair of the senate finance committee and  the  chair  of
  the  assembly  ways  and  means  committee  detailing  the  use of state
  assistance for the project and the progress of the  project  in  meeting
  the  performance  criteria  set forth on the program and financing plan.
  Such report shall be submitted by March thirty-first, two thousand eight
  and March thirty-first thereafter for  a  period  not  to  exceed  seven
  years.
    §  42.  New  York state modernization projects. 1. Notwithstanding the
  provisions of any other law to the contrary, the dormitory authority and
  the corporation are hereby authorized to issue bonds or notes in one  or
  more  series  for the purpose of funding project costs for the Roosevelt
  Island operating corporation related to the modernization of the  aerial
  tramway,  critical  maintenance  and  improvement projects on Governor's
  Island,  redevelopment  initiatives  at  the   Harriman   research   and
  technology  park  and  USA Niagara and other state costs associated with
  such projects. The aggregate principal amount of bonds authorized to  be
  issued  pursuant  to  this  section  shall not exceed fifty million four
  hundred fifty thousand dollars, excluding bonds issued to  fund  one  or
  more debt service reserve funds, to pay costs of issuance of such bonds,
  and  bonds  or  notes  issued to refund or otherwise repay such bonds or
  notes previously issued. Such bonds and notes of the dormitory authority
  and the corporation shall not be a debt of  the  state,  and  the  state
  shall  not be liable thereon, nor shall they be payable out of any funds
  other than those appropriated by the state to  the  dormitory  authority
  and  the  corporation  for  principal,  interest,  and  related expenses
  pursuant to a service contract and such bonds and notes shall contain on
  the face thereof a statement to such  effect.  Except  for  purposes  of
  complying  with the internal revenue code, any interest income earned on
  bond proceeds shall only be used to pay debt service on such bonds.
    2. Notwithstanding any other provision of  law  to  the  contrary,  in
  order   to  assist  the  dormitory  authority  and  the  corporation  in
  undertaking the financing for the Roosevelt Island operating corporation
  related to the modernization of the aerial tramway, critical maintenance
  and improvement projects on Governor's Island, redevelopment initiatives
  at the Harriman research and technology park and USA Niagara  and  other
  state costs associated with such projects, the director of the budget is
  hereby  authorized  to enter into one or more service contracts with the
  dormitory authority and the corporation,  none  of  which  shall  exceed
  thirty years in duration, upon such terms and conditions as the director
  of  the budget and the dormitory authority and the corporation agree, so
  as to annually provide to the dormitory authority and  the  corporation,
  in  the  aggregate,  a  sum  not  to exceed the principal, interest, and
  related expenses required for such bonds and notes. Any service contract
  entered into pursuant to this section shall provide that the  obligation
  of  the  state to pay the amount therein provided shall not constitute a
  debt of the state within the meaning of any constitutional or  statutory
  provision  and  shall  be  deemed executory only to the extent of monies
  available and that no liability shall be incurred by  the  state  beyond
  the  monies  available for such purpose, subject to annual appropriation

  by the legislature. Any such contract or any payments made or to be made
  thereunder may be assigned and pledged by the  dormitory  authority  and
  the  corporation  as  security for its bonds and notes, as authorized by
  this section.
    §   43.   2008   and   2009   Economic   development  initiatives.  1.
  Notwithstanding the provisions of any other law  to  the  contrary,  the
  dormitory  authority  and the corporation are hereby authorized to issue
  bonds or notes in one or more series for the purpose of funding  project
  costs  for  various  economic  development and regional initiatives, the
  upstate regional blueprint fund, the downstate revitalization fund,  the
  upstate   agricultural   economic  fund,  the  New  York  state  capital
  assistance program, the New York state economic  development  assistance
  program  and  other  state  costs  associated  with  such  projects. The
  aggregate principal amount of bonds authorized to be issued pursuant  to
  this section shall not exceed one billion two hundred sixty-nine million
  four  hundred fifty thousand dollars, excluding bonds issued to fund one
  or more debt service reserve funds, to pay costs  of  issuance  of  such
  bonds, and bonds or notes issued to refund or otherwise repay such bonds
  or  notes  previously  issued.  Such  bonds  and  notes of the dormitory
  authority and the corporation shall not be a debt of the state, and  the
  state  shall not be liable thereon, nor shall they be payable out of any
  funds other than those  appropriated  by  the  state  to  the  dormitory
  authority  and  the  corporation  for  principal,  interest, and related
  expenses pursuant to a service contract and such bonds and  notes  shall
  contain  on  the  face  thereof  a  statement to such effect. Except for
  purposes of complying with  the  internal  revenue  code,  any  interest
  income earned on bond proceeds shall only be used to pay debt service on
  such bonds.
    2.  Notwithstanding  any  other  provision  of law to the contrary, in
  order  to  assist  the  dormitory  authority  and  the  corporation   in
  undertaking  the financing for various economic development and regional
  initiatives,  the  upstate  regional  blueprint  fund,   the   downstate
  revitalization  fund,  the  upstate  agricultural economic fund, the New
  York state capital assistance  program,  the  New  York  state  economic
  development  assistance  program  and  other state costs associated with
  such projects, the director of the budget is hereby authorized to  enter
  into  one or more service contracts with the dormitory authority and the
  corporation, none of which shall exceed thirty years in  duration,  upon
  such  terms  and  conditions  as  the  director  of  the  budget and the
  dormitory authority and the corporation agree, so as to annually provide
  to the dormitory authority and the corporation, in the aggregate, a  sum
  not to exceed the principal, interest, and related expenses required for
  such bonds and notes. Any service contract entered into pursuant to this
  section shall provide that the obligation of the state to pay the amount
  therein  provided  shall  not  constitute a debt of the state within the
  meaning of any constitutional or statutory provision and shall be deemed
  executory only to the extent of monies available and that  no  liability
  shall  be  incurred  by  the  state beyond the monies available for such
  purpose, subject to annual appropriation by the  legislature.  Any  such
  contract  or  any payments made or to be made thereunder may be assigned
  and pledged by the dormitory authority and the corporation  as  security
  for its bonds and notes, as authorized by this section.
    §  44.  Issuance  of  certain  bonds  or notes. 1. Notwithstanding the
  provisions of any other law to the contrary, the dormitory authority and
  the corporation are hereby authorized to issue bonds or notes in one  or
  more  series  for  the purpose of funding project costs for the regional
  economic development council  initiative,  the  economic  transformation
  program,  state university of New York college for nanoscale and science

  engineering,  projects  within  the  city  of  Buffalo  or   surrounding
  environs, the New York works economic development fund, projects for the
  retention of professional football in western New York, the empire state
  economic  development  fund,  the  clarkson-trudeau partnership, the New
  York  genome  center,  the  cornell  university  college  of  veterinary
  medicine,  the  olympic regional development authority, projects at nano
  Utica, onondaga county revitalization  projects,  Binghamton  university
  school of pharmacy, New York power electronics manufacturing consortium,
  regional infrastructure projects, high technology manufacturing projects
  in  Chautauqua  and  Erie  county,  an  industrial  scale  research  and
  development  facility  in   Clinton   county,   upstate   revitalization
  initiative  projects,  market New York projects, fairground buildings or
  facilities used to house and promote agriculture, 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  four
  billion  six  hundred  seventy-one  million  seven  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, projects  at  nano
  Utica,  onondaga  county  revitalization projects, Binghamton university
  school of pharmacy, New York power electronics manufacturing consortium,
  regional infrastructure projects, high technology manufacturing projects
  in  Chautauqua  and  Erie  county,  an  industrial  scale  research  and
  development   facility   in   Clinton   county,  upstate  revitalization
  initiative projects, market New York projects, fairground  buildings  or
  facilities  used to house and promote agriculture, 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 $550,000,000, 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 three hundred
  sixty-four million eight 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 five hundred forty 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 one 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 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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