Relates to the development and creation of distributed ledger technology, which is a mathematically secured, chronological, and decentralized consensus ledger or database, whether maintained via internet interaction, peer-to-peer network, or otherwise used to authenticate, record, share and synchronize transactions in their respective electronic ledgers or databases, and business entities that develop distributed ledger technology.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1052
SPONSOR: Vanel TITLE OF BILL:
An act to amend the economic development law, in relation to the devel-
opment and creation of distributed ledger technology and business enti-
ties that develop such technology
PURPOSE OR GENERAL IDEA OF BILL:
This bill, would incorporate digital ledger technology into the defi-
nition and eligibility of businesses engaged in "financial services data
centers or financial services customer back office operations" and
"software development" in the Excelsior Jobs Program.
SUMMARY OF PROVISIONS:
This bill would amend the Economic Development Law to add "digital
ledger technology" into the definitions of businesses engaged in "finan-
cial services data centers or financial services customer back office
operations" and "software development" with in the Excelsior Jobs
Program. For the purposes of this section "distributed ledger technolo-
gy" means a mathematically secured, chronological, and decentralized
consensus ledger or database, whether maintained via Internet inter-
action, peer-to-peer network, or otherwise use to authenticate, record,
share and synchronize transactions in their respective electronic
ledgers or databases. Further, this bill would amend the eligibility
criteria of the Excelsior Jobs Program to allow software companies
developing digital ledger technology and which have been in business for
more than one year and less than five years, to have at least two full-
time job equivalents. Finally, this bill would require, during the
application and approval process that the commissioner of the Department
of Economic Development strive for broad regional geographic represen-
tation within the program. The Commissioner would also be directed to
promote diverse ownership and workforces of participating businesses
through
outreach to businesses owned by people with disabilities, minority- and
women-owned businesses and veteran-owned businesses.
JUSTIFICATION:
Blockchain and/or distributed ledger technology is a transformative
development that has the potential to affect how governments, businesses
and individuals conduct daily operations from financial and real estate
transactions to complex legal court filings. Distributed ledger tech-
nology is the back-bone to blockchain authentication. While it has come
to prominence because of its use in cryptocurrencies such as Bitcoin, it
has enormous potential in other sectors.It is important that as this
kind of technology continues to grow and expand, that New York's indus-
tries are at the forefront of protecting and securing information over
the Internet, the electronic storage of data, electronic record-keeping
and cyber security. The "Blockchain Business Incentive Act" would
support New York block- chain businesses by adding them to the Excelsior
Jobs Program where the businesses can qualify for: (1) The Excelsior
Jobs Tax Credit: A credit of 6.85 percent of wages per new job; (2) The
Excelsior Investment Tax Credit: Valued at two percent of qualified
investments; (3) The Excelsior Research and Development Tax Credit: A
credit of 50 percent of the Federal Research and Development credit up
to three percent of research expenditures in NYS; and (4) The Excelsior
Real Property Tax Credit: Available to firms locating in certain
distressed areas.
PRIOR LEGISLATIVE HISTORY:
1/28/21 referred to economic development, 4/20/21 referred to ways and
means, 1/05/22 referred to ways and means
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To Be Determined
EFFECTIVE DATE:
Effective Immediately
STATE OF NEW YORK
________________________________________________________________________
1052
2023-2024 Regular Sessions
IN ASSEMBLY
January 13, 2023
___________
Introduced by M. of A. VANEL -- read once and referred to the Committee
on Economic Development
AN ACT to amend the economic development law, in relation to the devel-
opment and creation of distributed ledger technology and business
entities that develop such technology
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions 8 and 23 of section 352 of the economic devel-
2 opment law, as amended by section 1 of part K of chapter 59 of the laws
3 of 2017, are amended to read as follows:
4 8. "Financial services data centers or financial services customer
5 back office operations" means operations that manage the data or
6 accounts of existing customers or provide product or service information
7 and support to customers of financial services companies, including
8 banks, other lenders, securities and commodities brokers and dealers,
9 investment banks, portfolio managers, trust offices, [and] insurance
10 companies, and financial technology companies that develop distributed
11 ledger technology. For purposes of this subdivision "distributed ledger
12 technology" means a mathematically secured, chronological, and decen-
13 tralized consensus ledger or database, whether maintained via internet
14 interaction, peer-to-peer network, or otherwise used to authenticate,
15 record, share and synchronize transactions in their respective electron-
16 ic ledgers or databases.
17 23. "Software development" means the creation of distributed ledger
18 technology, coded computer instructions or production or post-production
19 of video games, as defined in subdivision one-a of section six hundred
20 eleven of the general business law, other than those embedded and used
21 exclusively in advertising, promotional websites or microsites, and also
22 includes new media as defined by the commissioner in regulations. For
23 purposes of this subdivision "distributed ledger technology" means a
24 mathematically secured, chronological, and decentralized consensus
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03767-01-3
A. 1052 2
1 ledger or database, whether maintained via internet interaction, peer-
2 to-peer network, or otherwise used to authenticate, record, share and
3 synchronize transactions in their respective electronic ledgers or data-
4 bases.
5 § 2. Section 354 of the economic development law is amended by adding
6 a new subdivision 6 to read as follows:
7 6. The commissioner shall strive to ensure that there is participation
8 on a broad regional geographic basis within the program and outreach to
9 all eligible industries defined in section three hundred fifty-two of
10 this article. The commissioner shall also promote diverse ownership and
11 workforces of participating businesses through outreach to businesses
12 owned by people with disabilities as defined under subdivision twenty-
13 one of section two hundred ninety-two of the executive law or subdivi-
14 sions three and twenty-two of section 1.03 of the the mental hygiene
15 law, minority- and women-owned businesses and veteran-owned businesses
16 in those industries where their participation is not currently preva-
17 lent.
18 § 3. This act shall take effect immediately.
