What's happening
This bill provides grants and flexible financing to help small dry cleaning and nail salons upgrade equipment to meet health and safety regulations.
Why it matters
Targets Health & Environmental Risks. By supporting dry cleaners in switching from perchloroethylene (a hazardous solvent) to safer machines, and helping nail salons upgrade ventilation, the bill directly aims to reduce exposure to toxic chemicals for workers and customers, addressing long-standing public health concerns.
Eases Compliance Burdens for Small Businesses. The bill's grants and flexible loan options help small, often minority- and immigrant-owned businesses afford costly upgrades required by complex and evolving codes, potentially preventing closures or layoffs caused by inability to meet regulations.
Leverages Broader Financial Support. By including mechanisms like loan guarantees and revolving loan funds, the bill seeks to attract additional private or traditional financing, potentially multiplying the impact of state funds and increasing the number of businesses that can benefit.
Promotes Inter-Agency Coordination. The law mandates cooperation between economic development, environmental, and health agencies, signaling a more comprehensive approach to regulating and supporting high-risk industries, which could result in more effective oversight and assistance.
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Who cares
Headline styles
Help for Small Salons, Cleaners
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Help for Small Businesses
In Assembly Committee · Ways And Means · Sponsor Ron Kim
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
9071
IN SENATE
October 28, 2020
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the New York state urban development corporation act, in relation to assistance for certain small businesses
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 16-m of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new paragraph (o) to read as follows:
(o) Assistance to small businesses engaged in dry cleaning or appearance enhancement businesses which practice nail specialty to make capital improvements through grants and 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. Such financial assistance shall be used to assist: (i) dry cleaning businesses for the purchase and installation of non-perchlorethylene machines and sprinkler systems to comply with state and local codes, rules and regulations; and (ii) appearance enhancement businesses which practice nail specialty to make capital improvements and upgrades to mechanical ventilation systems that are necessary to comply with federal, state and local indoor air quality codes, rules and regulations. The corporation, in consultation with the environmental facilities corporation, the department of environmental conservation and the department of health, shall promulgate all necessary rules and regulations to facilitate and administer such assistance program. For the purposes of this paragraph, "small businesses" shall have the same meaning as defined in section one hundred thirty-one of the economic development law.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law; provided, however, the amendments to subdivision one of section 16-m of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, made by section one of this act, shall not affect the expiration of such section
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03964-01-9
S. 9071 2
and shall be deemed to expire therewith; provided, further, however, that effective immediately, the addition, amendment, and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the New York state urban development corporation act, in relation to assistance for certain small businesses
Purpose or general idea of bill
This bill would expand the eligibility of the urban development corpo- ration act to allow dry cleaning businesses and appearance enhancement businesses which practice nail specialty to make capital improvements through grants and flexible financing programs.
Summary of specific provisions
Section one of the bill amends the urban development corporation act by adding a new paragraph (o) to section 16-m, to provide capital improve- ments through grants and flexible financing programs in order to assist:
Read the full memo (634 words)
1. Dry cleaning businesses for the purchase and installation of nonper- chlorethylene machines and sprinkler systems to comply with state and local codes, rules and regulations
2. Appearance enhancement businesses which practice nail specialty to make capital improvements and upgrades to mechanical ventilation systems that are necessary to comply with federal, state and local indoor air quality codes, rules and regulations. The corporation shall consult with the EFC and DEC to promulgate all necessary rules and regulations to facilitate and administer such assistance program.
Section two of the bill sets forth the effective date.
Justification
In recent years, New York has continued to take the initiative in advancing air quality and environmental safety practices. In particular, Governor Cuomo has taken several actions to promote environmental protection in the workplace, including: creating the Task Force to Combat Worker Exploitation; directing the Department of Environmental Protection (DEP) to establish a statewide ban on dry cleaners' use of perchlorethylene (PERC); and requiring all nail salons to install mechanical ventilation systems.
However, this has led to significant financial challenges for our state's small businesses. For dry cleaners, non-PERC alternatives cost on average $70,000-$120,000 per machine, representing one-third of a typical neighborhood shop's annual sales revenue. In addition, the flammability of non-PERC solvents would require those in New York City to spend another $70,000-$100,000 installing up-to-date sprinkler systems, in order to comply with municipal fire codes. Similarly, any nail salons established in New York after October of 2016 must install mechanical ventilation systems and pre- existing nail salons must do so within five years. This latest requirement will cost nearly $24,000 for a nail salon to comply with.
These strenuous financial obligations will likely force many mom-and-pop businesses to shut down or leave New York. Many more would be brought to the brink of bankruptcy. The overall economic damage would be incalcula- ble and devastating to both small businesses and the workers they employ. Our state government previously established an implementation fund for the restoration and preservation of New York's environmental and natural resources, through the "Clean Water / Clean Air Bond Act of 1996." In accordance with this act, the NYS Environmental Facilities Corporation created the Financial Assistance to Business (FAB) program, which offered financial assistance to small business owners to comply by transitioning to upgraded equipment. Unfortunately, FAB's subsidy program expired in March 2004.
In the face of new regulations and mandates for environmental protection and safety, we must restore and expand this program, creating a new fund to assist dry cleaners, nail salons, and other small businesses through the Urban Development Corporation Act. By providing the necessary finan- cial assistance to survive these new regulations and mandates, New York will become one of the leading examples throughout our nation for comprehensive workplace safety, environmental protection and commercial innovation.
Prior legislative history
01/19/2018 referred to small business 05/01/2018 reported referred to ways and means 01/17/2018 REFERRED TO CORPORATIONS, AUTHORITIES, AND COMMISSIONS 03/27/2018 PASSED SENATE 06/19/2018 PASSED ASSEMBLY 06/190/2018 DELIVERED TO GOVERNOR 12/28/2018 VETOED MEMO .358
Fiscal implications
To be determined.
Effective date
This act shall take effect on the ninetieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.