2022 Annual Report — New York State Assembly Committee on Small Business
Summary
The 2022 Annual Report of the New York State Assembly Committee on Small Business, chaired by Albert A. Stirpe, Jr., with a transmittal letter to Speaker Carl E. Heastie dated December 15, 2022. The letter says the Committee worked on solutions for small businesses struggling because of the COVID-19 pandemic, supply chain disruptions and employee shortages. It lists enacted State Fiscal Year 2022-23 Budget items, including $200 million for the new small business seed grant program and a $250 million COVID Capital Costs Small Business Tax Credit, and credits the Committee with the Green CHIPS Act. The report states the Committee reported three bills favorably in the 2022 session, and the appendices cover a summary sheet, chapters of 2022 and a Small Business Week resolution.
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“2022 Annual Report — New York State Assembly Committee on Small Business.”
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N E W Y O R K S T A T E A S S E M B L Y
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Committee On Small Business
Carl E. Heastie • Speaker
Albert A. Stirpe, Jr. • Chair
A N N U A L R E P O R T
THE ASSEMBLY CHAIR
Small Business
STATE OF NEW YORK COMMITTEES
Agriculture
ALBANY Alcoholism & Drug Abuse
Economic Development, Job Creation,
Commerce and Industry
ALBERT A. STIRPE, JR. Higher Education
Assemblyman 127th District
December 15, 2022
Honorable Carl E. Heastie, Speaker
New York State Assembly
Legislative Office Building, Room 932
Albany, New York 12248
Dear Speaker Heastie:
I am pleased to submit the 2022 Annual Report of the Assembly Standing Committee on Small
Business. Throughout this Legislative Session, the Committee worked on policy and budget
solutions for small businesses struggling through tough economic times due to the COVID-19
pandemic, and subsequent imposed restrictions, supply chain disruptions, and employee
shortages.
The Enacted State Fiscal Year 2022-23 Budget invests in programs that support small business
and encourages innovation that will help rebuild New York’s economy. Included in the enacted
budget is: $200 million for market and shovel ready sites; $1 million for each of the Centers for
Advance Technology and the Centers of Excellence; $2 million for the Minority- and Women-
Owned Business Enterprise Development and Lending Program; $250 million for the Restore
New York Communities Initiative; $200 million for the new small business seed grant program;
and $250 million COVID Capital Costs Small Business Tax Credit.
The Committee was also instrumental in the enactment of the Green CHIPS Act, which will
incentivize semiconductor manufacturers to build new factories in New York State by making
them eligible for the Excelsior Jobs Tax Credit Program. This law will help ensure that a
domestic supply of semiconductor chips is made in New York State.
I join my colleagues in commending you for your continued commitment to supporting small
businesses. The Committee looks forward to a productive legislative session so we can continue
to rebuild and create a healthy environment for small businesses to thrive across New York State.
Sincerely,
Al Stirpe, Chair
Committee on Small Business
2022
ANNUAL REPORT
NEW YORK STATE ASSEMBLY
STANDING COMMITTEE ON SMALL BUSINESS
Al Stirpe
Chairman
Committee Members
Majority Minority
José Rivera David DiPietro
Carrie Woerner Kieran Michael Lalor
Inez Dickens Marjorie Byrnes
Billy Jones Brian Manktelow
Taylor Darling
Catalina Cruz
Emily Gallagher
Chantel Jackson
Sarah Clark
Jenifer Rajkumar
Manny De Los Santos
Monique Chandler-Waterman
Staff
Fletcher Whyland, Assistant Secretary for Program and Policy
Kathleen Fazio, Analyst
Michael DeBaise, Committee Clerk
Sally Block, Program and Counsel Secretary
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TABLE OF CONTENTS
I. INTRODUCTION, COMMITTEE JURISDICTION AND ACTIVITY .............................4
II. 2022-2023 SMALL BUSINESS BUDGET OUTCOME .......................................................5
III. ISSUES BROUGHT THROUGH COMMITTEE IN 2022
A. REGULATORY REFORM ............................................................................................12
B. BUSINESS ASSISTANCE ..............................................................................................12
IV. OUTLOOK FOR 2023 .........................................................................................................13
APPENDIX A: 2022 SUMMARY SHEET ................................................................................14
APPENDIX B: CHAPTERS OF 2022........................................................................................15
APPENDIX C: ADDITIONAL BILLS REPORTED IN 2022 ................................................16
APPENDIX D: SMALL BUSINESS WEEK RESOLUTION ................................................17
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I. INTRODUCTION, COMMITTEE JURISDICTION AND ACTIVITY
Small businesses are defined in State law as those businesses employing 100 or fewer people.
According to Empire State Development 2022 Annual Report on the State of Small Business, New
York State small businesses comprise 98 percent of the State’s established firms and an estimated
40 percent of the state workforce. Just about all industries in the state are represented by small
businesses, including trade, professional services, leisure activities, construction, financial services,
health care, manufacturing, transportation, information, and education.
New York’s small businesses are integral to the State’s economy, but the effects of pandemic,
supply chain disruptions, and the current rise in inflation are proving to be difficult for many
businesses across the State. According to the most recent national Small Business Credit Survey
(2022), 80 percent of NYS firms indicated that they are still negatively affected by the pandemic
and 93 percent indicate a financial challenge during the last 12 months.
In last year’s and again in this year’s enacted budget, the State Legislature has created funding
programs to help small businesses that did not qualify for federal funding, as well as various other
supportive funding programs and statutory changes. Additionally, the Committee continues to
promote budget programs and legislation that will improve access to credit, financial programs and
technical assistance services for small businesses of all kinds, including minority-, women-, and
veteran-owned businesses.
The Committee also works closely with several State agencies and entities to ensure they serve
the needs of the small business community. This includes the Department of Economic
Development and the Empire State Development Corporation, which are the State’s chief
economic development entities. The Committee also met with newly appointed director of the
Small Business Development Centers (SBDC) to gain insight to the role of SBDCs and how they
can assist small businesses in New York State.
During the 2022 Legislative Session, the Standing Committee on Small Business reported three
bills favorably. In addition, several bills that were important to small businesses, but were
referred to other committees, became law with the assistance and input of the Small Business
Committee.
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II. 2022-2023 SMALL BUSINESS BUDGET OUTCOME
In the most recently enacted state budget, the Committee on Small Business supported key
initiatives to boost New York’s economy, create jobs, and facilitate opportunities for small
businesses and entrepreneurs. The following are budget highlights that affect small businesses in
New York State:
Empire State Development and Department of Economic Development
The enacted State Budget provided an All Funds appropriation of $103.6 million, an increase of
$4.42 million over the Executive proposal, for the Department of Economic Development.
Further, the budget provided an All Funds appropriation of $5.2 billion, an increase of $1.22
billion over the Executive proposal, for the Urban Development Corporation. The following are
highlights of some of the programs that are funded to promote economic development and
businesses in New York via the State Fiscal Year 2022-2023 Budget:
• Pandemic Recovery Programs
o $200 million for the COVID-19 Small Business Seed Funding Grant Program, which will
provide grants to micro- and small businesses and for-profit independent arts and cultural
organizations and independent arts contractors that began operation shortly before or
during the COVID-19 pandemic and were not eligible for other State and Federal
assistance. The program builds upon the State’s $800 million Pandemic Small Business
Recovery Grant Program enacted in SFY 2021-2022 Budget. (Note: Application Portal
on the Empire State Development opened on September 14, 2022)
o $250 million for a refundable COVID-19 Capital Costs Small Business Tax Credit
program, which will provide small businesses $2.5 million or less in gross receipts to be
eligible for a 50 percent tax credit of up to $25,000 of qualifying costs to cover
unexpected COVID-related costs, (i.e., the purchase of cleaning supplies, outdoor
heaters, air purifiers, signage denoting vaccine/masking policies, and equipment to
accommodate contactless payments).
o Authorization for an additional Restaurant Return-to-Work Credit for restaurants that
received the existing Restaurant Return-to-Work Credit, but exceeded the $50,000 per
employer cap, which is equal to 10 Full-Time Equivalent (FTE) positions added from
April 1, 2021, to December 31, 2021. This credit is available for eligible businesses that
hired between 10 and 20 FTE positions over the same period, and the combined
Restaurant Return-to-Work Credits would remain capped at $35 million.
o Extension and enhancement of the NYC Musical and Theatrical Production Tax
Credit from $100 million to $200 million to further support this sector impacted by the
Omicron variant.
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• Workforce Development
o A $350 million investment for the new Office of Workforce and Economic Development
at Empire State Development to provide resources to the following:
▪ Leverage Empire State Development’s relationships with employers to help
identify employer needs
▪ Develop tailored regional training strategies
▪ Support programs to train New Yorkers in the skills necessary to succeed in in-
demand fields
▪ Make targeted investments in teachers, healthcare workers, apprenticeships and
internships, mental health professionals, and caregivers.
o The new office will work in conjunction with the Regional Economic Development
Councils, the Department of Labor, the State University of New York and the City
University of New York and other partners to ensure coordinated training and workforce
strategies.
▪ The following is a delineation of how the $350 million will be invested:
• $115 million for Workforce Development Grant Program
• $47 million for Financial Burden Relief for Healthcare Workers
• $39 million for Caregiver Flexibility for Direct Care Workers
• $35 million for Workforce Development Capital Grant Program
• $30 million for Teacher Residency Program
• $22.5 million for Training Capacity Expansion for Statewide institutions
• $20.8 million for Office Workforce Development and Economic Development
• $10 million for SUNY and CUNY internships
• $10 million for Expansion of Alternative Teacher Certifications
• $8 million for Upskilling School Paraprofessionals
• $5 million for SUNY and CUNY apprenticeships
• $2.8 million for Expansion of Psychiatric rehabilitation Service at Office of
Mental Health
• $2.7 million for Employment and Training at Office for People With
Developmental Disabilities
• $1.2 million for Diversity in Medicine Program
• $1 million for Expansion of a SUNY Pre-Medical Opportunities Program
o $2.5 million for a cannabis workforce development
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• University-Based Programs
o $15 million for the 15 existing Centers for Advanced Technology (CATs), which
collaborate with New York companies on the development of new technologies and
products and create new businesses and high-quality jobs throughout the State
o $14 million for the 14 existing Centers of Excellence (CoE), which collaborate with New
York companies in commercializing scientific discoveries in fields such as
nanoelectronics, bioinformatics, photonics, environmental systems, atmospheric sciences,
bioterrorism and disaster preparedness, and information technology
o $3 million for SUNY Polytechnic Institute College of Nanoscale Science and
Engineering and Rensselaer Polytechnic Institute focus Centers
o $2.7 million for Small Business Development Centers
o $20 million for the Syracuse University Carrier Dome
o $1 million for Stony Brook Medicine’s National Cancer Institute
• General Economic Development
o $800 million for New York State Regional Economic and Community Assistance
Program
o $320 million for the New York Works Economic Development Fund
o $200 million for FAST grants program for shovel ready site development
o $250 million for the Restore New York Communities Initiative
o $45 million for economic development initiatives of the State for promoting tourism and
expanding business investment and job creation and retention
o $26.18 million for the Empire State Economic Development Fund
o $15 million for the Market New York Program
o $2 million for the Empire State Entertainment and Diversity Job Training Program
• Business Assistance
o $75 million for the Innovation Venture Competition Program
o $15.5 million for the Manufacturing Extension Partnership Program
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o $5 million for the High Technology Matching Grants Program
o $5 million for the New York State Innovation Hot Spots/ New York State Incubators
o $1.76 million for the Entrepreneurial Assistance Program (EAP)
o $1.382 million for the Technology Development Organizations
o $1.495 million for the Community Development Financial Institutions (CDFI) Program
o $2 million for the Minority- and Women-Owned Business Development and Lending
Program and for Minority- and Women-Owned Business Development
o $921,000 for the Industrial Technology Extension Service Program
o $343,000 Science and Technology Law Center
o $3.44 million for the Urban and Community Development Program
• Commerce, Regional Economic Development, Trade and Tourism
o $350 million for a Long Island Investment Fund
o $10 million for a Mohawk Harbor Events Center
o $11 million for Universal Hip Hop Museum
o $5 million for the Pace University Performing Arts Center
o $600 million for Orchard Park football facilities (home of the Buffalo Bills), as well as $7
million to help retain professional football in Western New York
o $10 million for New York Hall of Science
o $3.45 million for local tourism promotion matching grants
o $7 million for marketing and advertising to promote regional attractions
o $1.5 million for Economic Development and Community Service Organizations
o $16 million in Federal grants for state and local workforce, tourism, recreation, marketing
o $1 million for the Manufacturers Intermediary Apprenticeship Program
o $150,000 for the Finger Lakes Tourism Alliance
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o $150,000 for Harlem Week, Inc.
o $100,000 for Kleinhans Music Hall Management
o $1 million for military base redevelopment and research
o $550,000 for the Bronx Overall Economic Development Corporation
o $700,000 for the Center State Corporation for Economic Opportunity (CEO) Program
o $500,000 for the Queens Chamber of Commerce
o $150,000 for the Brooklyn Chamber of Commerce
o $550,000 for the Brooklyn Alliance
o $225,000 for the North Country Chamber of Commerce
o $100,000 for Adirondack North Country Association
o $150,000 for the Association of Community Employment Programs
o $100,000 for the Brooklyn Neighborhood Association
o $310,000 for the Amsterdam Urban Renewal Agency
o $140,000 for the Kingsbridge Riverdale Van Cortlandt Development Corporation
o $100,000 for the Queens Economic Development Council
o $50,000 for the Staten Island Economic Development Council
o $150,000 for the Syracuse Jazzfest Productions
• Regional Economic Development Councils
The 10 Regional Economic Development Councils (REDCs) of New York State, which include
community, business, academic leaders, and members of the public in each region, use their
knowledge and understanding of local priorities and assets to help direct state investment in
support of job creation and economic growth. REDCs have developed and implemented
comprehensive strategic plans for their respective regions and regularly issue updated plans.
These play an important role in determining how millions of dollars in existing economic aid are
awarded through the State’s Consolidated Funding Application (CFA).
o $150 million for REDC grants program
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o $200 million for a sixth round of the Downtown Revitalization Initiative (DRI) to be used
to revitalize downtowns areas in each of the 10 economic regions of the State. Funds are
to be distributed as follows:
▪ $100 million for the traditional main street redevelopment
▪ $100 million for the NY Forward grant program to support redevelopment
in smaller and more rural areas
• Other notable investments in the NYS Budget related to committee work:
o $1.4 billion for Broadband Funding to ensure affordable access to highspeed internet
across the state, $1.1 billion of which is federal funding.
o $11 million for Minority- and Women-Owned Businesses Enterprises (MWBEs) to
ensure faster MWBE certifications and to address the backlog in pending certifications
and promote equal access to reduced-rate loans for MWBEs.
o $500 million for Green Jobs, investing in green technology and infrastructure necessary
for the development of offshore wind ports.
• Article VII
The 2022-23 State Fiscal Year Budget includes the following Article VII provisions related to
the Department of Economic Development and Empire State Development.
o The Legislature modified the Executive proposal to extend the general loan powers of the
New York State Urban Development Corporation by three years to a one-year extension
(July 1, 2022 to July 1, 2023).
o The Legislature modified the Executive proposal to authorize the New York State Urban
Development Corporation to administer the Empire State Economic Development Fund
by three years to a one-year extension (July 1, 2022 to July 1, 2023).
o The Legislature adopted a proposal to create a COVID-19 Small Business Seed Funding
Grant Program to provide funding to support early-stage small and micro businesses.
o The Legislature approved a proposal to expand the Excelsior Linked Deposit Program by
authorizing Community Development Financial Institutions to participate as borrowers
for projects in which loans will be available to small businesses.
o The Legislature modified the Executive proposal to establish a $250 million refundable
tax credit program to support small business capital expenses resulting from the COVID-
19 pandemic, to add reporting requirements and establish a minimum credit amount of
$1,000 per business. Under this program, small businesses with $2.5 million or less of
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gross receipts would be eligible for a credit of 50 percent of their qualifying costs up to
$25,000.
o The Legislature modified the Executive proposal to increase funding caps for demolition
and rehabilitation of property. Under the RESTORE-NY program residential apartment
units are included as eligible properties to receive rehabilitation funds and enhanced
incentives are provided to rehab properties for purpose of creating affordable housing
units, including the participation of minority and women-owned businesses enterprises.
o The Legislature adopted a proposal to codify a searchable database of all economic
development programs and to include part-time and full-time jobs created and retained by
entities receiving economic development benefits.
o The Legislature modified the Executive proposal to expand the Restaurant Return-to-
Work Credit program to include an additional credit available for businesses that hired
between 10 and 20 FTE positions over the same period.
o The Legislature modified the Executive proposal to increase the New York City Musical
and Theatrical Production Tax Credit from $100 million to $200 million.
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III. ISSUES BROUGHT THROUGH COMMITTEE IN 2022
A. REGULATORY REFORM
Extension Through 2024 of Cure Periods for Small Businesses or Small Business
Regulatory Relief
(A.8744, McDonald; Chapter 39 of the Laws of 2022)
This law changes the annual submission dates for a report by the Division for Small Business
regarding the use of opportunities for cure or ameliorative action afforded to small businesses for
first time violations of rules and regulations to October 1st of each year.
B. BUSINESS ASSISTANCE
Small Business Main Street Grant Program
(A.6488-A, Stirpe; Reported to Ways & Means)
This bill would require the Division of Small Business to advise/make recommendations on
matters affecting micro-enterprises; create a Main Street Center Grant Program; and require all
rule-making documents be submitted to the Secretary of State in electronic format and that
documents be made available electronically to the public and to interested parties through
various means determined by the Secretary of State.
New York State Innovative Energy and Environmental Technology Program
(A.9309-B Solages; Reported to Ways & Means)
This bill would create the New York State Innovative Energy and Environmental Technology
Program, providing grants of up to $100,000 for the purposes of spurring innovative energy and
environmental technology development and commercialization.
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V. OUTLOOK FOR 2023
Though the road to recovery is long, the Small Business Committee’s support for New
York’s small businesses is steadfast. The Committee will continue to address the needs of small
businesses, minority- and women-owned business enterprises (MWBEs), and veteran-owned
businesses, creating a supportive environment that encourages their growth, expansion, and
stability here in New York.
The priorities of the Committee include increasing access to capital and the expansion of
MWBEs while supporting the development and commercialization of innovative new
technology, adoption of alternative energy and energy conservation, workforce and economic
development, improving contracting opportunities with State and local governments, veterans’
business assistance, immigrant-owned business assistance and helping small businesses recover
from the effects of the pandemic to come back stronger.
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APPENDIX A
2022 SUMMARY SHEET
SUMMARY OF ACTION ON ALL BILLS
REFERRED TO THE COMMITTEE ON
__ Small Business______________
TOTAL NUMBER OF COMMITTEE MEETINGS HELD ___2__
ASSEMBLY SENATE TOTAL
BILLS BILLS BILLS
BILLS REPORTED FAVORABLE TO:
0 0 0
Codes
Judiciary 0 0 0
Ways and Means 2 0 2
Rules 1 0 1
Floor 0 0 0
TOTAL 3 0 3
COMMITTEE ACTION
Held For Consideration 0 0 0
Defeated 0 0 0
Enacting Clause Stricken 0 0 0
REMAINING IN COMMITTEE 14 0 14
BILLS REFERENCE CHANGED TO:
TOTAL 0 0 0
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APPENDIX B
Chapters of 2022
ASSEMBLY SENATE
CHAPTER BILL BILL DESCRIPTION
(SPONSOR) (SPONSOR)
This law changes the annual submission
dates for a report by the division for small
A.8744 S.7820 business regarding the use of opportunities
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(McDonald) (Kaplan) for cure or ameliorative action afforded to
small businesses for first time violations of
rules and regulations to October first.
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APPENDIX C
Additional Bills Reported in 2022
ASSEMBLY
BILL LAST ACTION DESCRIPTION
(SPONSOR)
This bill would create the New York State
Innovative Energy and Environmental
A.9309-B Referred to Ways & Technology Program that will award grants
(Solages) Means for the purpose of energy and environmental
technology development and
commercialization.
This bill would require the Division of Small
Business to advise/make recommendations on
matters affecting micro-enterprises; create a
Main Street Center Grant Program; and
A.6488-A Referred to Ways & require all rule-making documents be
(Stirpe) Means submitted to the Secretary of State in
electronic format and that documents be made
available electronically to the public and to
interested parties through various means
determined by the Secretary of State.
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APPENDIX D
NYS Assembly Resolution – Small Business Week
No. 801, Sponsored by Assembly Member Stirpe
MEMORIALIZING, Governor Kathy Hochul to proclaim May 1-7, 2022, as Small Business
Week in the State of New York.
WHEREAS, Small businesses of all kinds, from restaurants and local farms to hair salons and
bike shops to tech firms and landscapers, are crucial to the health of individual communities and
to the state's economy overall, but have been greatly tested during these past two
difficult years; and
WHEREAS, Prior to March 2020, when New York State declared a state of emergency because
of the COVID-19 pandemic, more than 623,000 small businesses called New York State home,
comprising 98 percent of all businesses; and
WHEREAS, Prior to the pandemic, New York State's small businesses had employed more than
four million people, or 50.2 percent of all the employees in the state, and generated 54 percent of
New York's total known export value; and
WHEREAS, Small businesses showed great ingenuity by adapting quickly to pandemic-related
restrictions and resulting economic hardships and they continued to serve their communities; and
WHEREAS, Nine out of 10 small businesses report having experienced major changes in their
business because of the pandemic; and
WHEREAS, While many small businesses benefited from Federal and New York State COVID-
19 relief programs, safety precautions and then supply chain disruptions forced many to lay off
workers and some to shut their doors; and
WHEREAS, In the last two state budgets, New York has attempted to directly help small
businesses with almost $2.5 billion in grants, tax relief and credits, as well as expanded access to
capital and job-creating investments; and
WHEREAS, New York State continues to actively support minority and women-owned
business enterprises with increased investments and greater access to procurement contracting;
and
WHEREAS, New York State is prioritizing and promoting service-disabled veteran-owned
businesses with grants and technical assistance programs and in the public procurement process;
and
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WHEREAS, The innovation, diversity, competitive strength, job creation, and quality of life
small businesses bring to our economy are vital elements for our State's long-term economic
health; and
WHEREAS, The entrepreneurial spirit of New York residents has led to the creation and growth
of emerging agricultural industries in New York, such as craft beverages, artisanal foods, and the
production of hemp, hops and adult-use cannabis; and
WHEREAS, Small business owners demonstrate extraordinary resilience in the face of larger
forces beyond their control, such as challenging economic times, supply chain disruptions, and
pandemics; and
WHEREAS, The future welfare of our State depends on the continued development of small
businesses; and
WHEREAS, The members of the New York State Assembly wish to proclaim their recognition
of small businesses as a crucial element in the economy of New York State and the need for all
residents to shop locally; now, therefore, be it
RESOLVED, That this Legislative Body pause in its deliberations to memorialize Governor
Kathy Hochul to declare May 1-7, 2022, as Small Business Week in the State of New York; and
be it further
RESOLVED, That a copy of this Resolution, suitably engrossed, be transmitted to The
Honorable Kathy Hochul, Governor of the State of New York.
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