N.Y. Economic Development Law § 139: Advisory panel on employee-owned enterprises

* § 139. Advisory panel on employee-owned enterprises. 1. Definition.

As used in this section, the term "employee-owned enterprise" shall mean

a business in which the employees control the majority of the voting

stock, or if the business is held in a trust which controls the majority

of the voting stock, the trustees are elected by the employees. The term

"employee-owned enterprise" shall also refer to a worker cooperative as

defined in section eighty-one of the cooperative corporations law.

2. Establishment of advisory panel. An advisory panel is hereby

created within the department for the purpose of reviewing state laws

and programs in order to report and make recommendations on how best to

support existing employee-owned enterprises, promoting the formation of

new employee-owned enterprises, and promoting the continued growth of

such businesses in the state.

3. Composition of advisory panel. (a) The advisory panel shall consist

of thirteen members, including:

(i) the commissioner, or his or her designee, who shall be designated

as chair of the advisory panel;

(ii) the commissioner of labor, or his or her designee;

(iii) the commissioner of tax and finance, or his or her designee; and

(iv) ten members to be appointed as follows: four shall be appointed

by the governor, two shall be appointed by the speaker of the assembly,

two shall be appointed by the temporary president of the senate, one

shall be appointed by the minority leader of the assembly, and one shall

be appointed by the minority leader of the senate. Such appointed

members shall represent entities and organizations with expertise

related to employee-owned enterprises or business development,

particularly those with an emphasis on small businesses, minority and

women-owned businesses, and veteran-owned businesses, including, but not

limited to:

(1) employee-owned enterprises;

(2) employee-owned enterprise advocacy, service, support, or

development organizations;

(3) business development organizations;

(4) New York state college and university programs with expertise in

business development;

(5) commercial lending organizations focusing on access to capital and

community development; and

(6) labor organizations.

(b) Each member of the panel shall serve at the pleasure of the

appointing authority, and any vacancy on the panel shall be filled in

the same manner as the original appointment. Such panel members shall

serve without compensation except that such members shall be entitled to

reimbursement for actual and necessary expenses incurred in such

service.

4. Powers and duties of the advisory panel. The advisory panel shall:

(a) identify and recommend strategies to promote the creation and

development of new employee-owned enterprises in order to create new

jobs and retain existing jobs within the state;

(b) identify and recommend strategies to facilitate the creation of

employee-owned enterprises that promote the continuation of existing

businesses either as part of a pre-existing business succession of

ownership plan or as an alternative option if a business is being

offered for sale or transfer by the current owner or the heirs or estate

of a deceased owner;

(c) evaluate the effectiveness of current state and local training and

assistance programs designed to provide support to employee-owned

enterprises, and make recommendations as to how to more effectively

utilize these programs and resources to support such enterprises;

(d) examine and identify state and local laws and regulations relating

to the governance and administration of employee-owned enterprises and

their effect on the creation, retention, and growth of such enterprises;

(e) examine and identify other successful federal, state and local

programs designed to provide support to employee-owned enterprises,

including any programs currently underutilized by individuals seeking to

establish an employee-owned enterprise in the state;

(f) evaluate the ability of new and existing employee-owned

enterprises to acquire the capital necessary to form, expand, and

develop their operations;

(g) evaluate the role of immigrants and new Americans, minorities,

women, and veterans in the formation of employee-owned enterprises;

(h) evaluate the potential for employee-owned enterprises to assist in

the revitalization and redevelopment of economically disadvantaged

communities; and

(i) recommend a set of best practices and policies as a guide for

individuals to use when forming an employee-owned enterprise, and make

such guide publicly available on the department's website.

5. Reporting. The advisory panel shall issue a report no later than

June thirtieth, two thousand twenty-seven outlining the findings and

recommendations of the panel. The report shall be delivered to the

governor, the speaker of the assembly, the temporary president of the

senate, the minority leader of the assembly, the minority leader of the

senate, the chair of the assembly committee on ways and means, the chair

of the senate committee on finance, the chair of the assembly committee

on economic development, the chair of the assembly committee on small

business, the chair of the senate committee on commerce, economic

development, and small business, the chair of the assembly committee on

labor, and the chair of the senate committee on labor.

* NB Repealed October 1, 2027