S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   750

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 15, 2009
                               ___________

Introduced  by  Sens. KRUEGER, DUANE, PARKER, SCHNEIDERMAN -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Corporations, Authorities and Commissions

AN ACT to amend the business corporation law and the public  authorities
  law,  in  relation  to  enacting the "corporate accountability for tax
  expenditures act"

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Short title.  This act shall be known and may be cited as
the "corporate accountability for tax expenditures act".
  S 2. The business corporation law is amended by adding a  new  article
14 to read as follows:
                                ARTICLE 14
              CORPORATE ACCOUNTABILITY FOR TAX EXPENDITURES
SECTION 1401. DEFINITIONS.
        1402. UNIFIED ECONOMIC DEVELOPMENT BUDGET.
        1403. STANDARDIZED  APPLICATIONS  FOR  STATE DEVELOPMENT ASSIST-
                ANCE.
        1404. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.
        1405. RECAPTURE.
S 1401. DEFINITIONS.
  AS USED IN THIS ARTICLE:
  (A) "BASE YEARS" MEANS THE FIRST TWO COMPLETE CALENDAR YEARS FOLLOWING
THE EFFECTIVE DATE OF A RECIPIENT RECEIVING DEVELOPMENT ASSISTANCE.
  (B) "DATE OF ASSISTANCE" MEANS THE COMMENCEMENT DATE OF THE ASSISTANCE
AGREEMENT, WHICH DATE TRIGGERS THE PERIOD DURING WHICH THE RECIPIENT  IS
OBLIGATED  TO  CREATE  OR  RETAIN  JOBS  AND  CONTINUE OPERATIONS AT THE
SPECIFIC PROJECT SITE.
  (C) "DEFAULT"  MEANS  THAT  A  RECIPIENT  HAS  NOT  ACHIEVED  ITS  JOB
CREATION, JOB RETENTION, OR WAGE OR BENEFIT GOALS, AS APPLICABLE, DURING
THE PRESCRIBED PERIOD THEREFOR.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00488-01-9
              

S. 750                              2

  (D)  "DEPARTMENT"  MEANS,  UNLESS  OTHERWISE  NOTED, THE DEPARTMENT OF
TAXATION AND FINANCE OR ANY SUCCESSOR AGENCY.
  (E)  "DEVELOPMENT ASSISTANCE" MEANS (1) TAX CREDITS AND TAX EXEMPTIONS
(OTHER THAN GIVEN UNDER TAX INCREMENT FINANCING) GIVEN AS  AN  INCENTIVE
TO  A  RECIPIENT  BUSINESS  ORGANIZATION  PURSUANT TO AN INITIAL CERTIF-
ICATION OR AN INITIAL DESIGNATION MADE BY THE DEPARTMENT UNDER  ARTICLES
EIGHTEEN-A OR EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW;
  (2)  ALL SUCCESSOR AND SUBSEQUENT PROGRAMS AND TAX CREDITS DESIGNED TO
PROMOTE LARGE BUSINESS RELOCATIONS AND EXPANSIONS. "DEVELOPMENT  ASSIST-
ANCE"  DOES  NOT  INCLUDE  TAX  INCREMENT FINANCING, ASSISTANCE PROVIDED
UNDER ARTICLE EIGHTEEN-A OR EIGHTEEN-B  OF  THE  GENERAL  MUNICIPAL  LAW
PURSUANT  TO  LOCAL  ORDINANCE, PARTICIPATION LOANS, OR FINANCIAL TRANS-
ACTIONS  THROUGH  STATUTORILY  AUTHORIZED  FINANCIAL  INTERMEDIARIES  IN
SUPPORT  OF  SMALL BUSINESS LOANS AND INVESTMENTS OR GIVEN IN CONNECTION
WITH THE DEVELOPMENT OF AFFORDABLE HOUSING.
  (F) "DEVELOPMENT ASSISTANCE AGREEMENT" MEANS ANY AGREEMENT EXECUTED BY
THE STATE GRANTING BODY AND THE RECIPIENT SETTING FORTH  THE  TERMS  AND
CONDITIONS  OF  DEVELOPMENT  ASSISTANCE  TO BE PROVIDED TO THE RECIPIENT
CONSISTENT  WITH  THE  FINAL  APPLICATION  FOR  DEVELOPMENT  ASSISTANCE,
INCLUDING  BUT  NOT  LIMITED TO THE DATE OF ASSISTANCE, SUBMITTED TO AND
APPROVED BY THE STATE GRANTING BODY.
  (G) "FULL-TIME, PERMANENT JOB" MEANS A JOB IN WHICH THE  NEW  EMPLOYEE
WORKS  FOR  THE  RECIPIENT  AT  A RATE OF AT LEAST THIRTY-FIVE HOURS PER
WEEK.
  (H) "NEW EMPLOYEE" MEANS A FULL-TIME, PERMANENT EMPLOYEE  WHO  REPRES-
ENTS  A  NET  INCREASE IN THE NUMBER OF THE RECIPIENT'S EMPLOYEES STATE-
WIDE. "NEW EMPLOYEE" INCLUDES AN EMPLOYEE WHO PREVIOUSLY  FILLED  A  NEW
EMPLOYEE POSITION WITH THE RECIPIENT WHO WAS REHIRED OR CALLED BACK FROM
A LAYOFF THAT OCCURS DURING OR FOLLOWING THE BASE YEARS.
  THE TERM "NEW EMPLOYEE" DOES NOT INCLUDE ANY OF THE FOLLOWING:
  (1) AN EMPLOYEE OF THE RECIPIENT WHO PERFORMS A JOB THAT WAS PREVIOUS-
LY  PERFORMED  BY ANOTHER EMPLOYEE IN THIS STATE, IF THAT JOB EXISTED IN
THIS STATE FOR AT LEAST SIX MONTHS BEFORE HIRING THE EMPLOYEE.
  (2) A CHILD, GRANDCHILD, PARENT, OR SPOUSE, OTHER THAN A SPOUSE WHO IS
LEGALLY SEPARATED FROM THE INDIVIDUAL,  OF  ANY  INDIVIDUAL  WHO  HAS  A
DIRECT  OR  INDIRECT  OWNERSHIP INTEREST OF AT LEAST FIVE PERCENT IN THE
PROFITS, CAPITAL, OR VALUE OF ANY MEMBER OF THE RECIPIENT.
  (I) "PART-TIME JOB" MEANS A JOB IN WHICH THE NEW  EMPLOYEE  WORKS  FOR
THE RECIPIENT AT A RATE OF LESS THAN THIRTY-FIVE HOURS PER WEEK.
  (J)  "RECIPIENT" MEANS ANY BUSINESS THAT RECEIVES ECONOMIC DEVELOPMENT
ASSISTANCE. A BUSINESS IS ANY CORPORATION,  LIMITED  LIABILITY  COMPANY,
PARTNERSHIP,  JOINT  VENTURE, ASSOCIATION, SOLE PROPRIETORSHIP, OR OTHER
LEGALLY RECOGNIZED ENTITY.
  (K) "RETAINED  EMPLOYEE"  MEANS  ANY  EMPLOYEE  DEFINED  AS  HAVING  A
FULL-TIME  OR  FULL-TIME EQUIVALENT JOB PRESERVED AT A SPECIFIC FACILITY
OR SITE, THE CONTINUANCE OF WHICH IS THREATENED BY A SPECIFIC AND DEMON-
STRABLE THREAT, WHICH SHALL BE SPECIFIED IN THE APPLICATION FOR DEVELOP-
MENT ASSISTANCE.
  (L) "SPECIFIC PROJECT SITE" MEANS THAT DISTINCT  OPERATIONAL  UNIT  TO
WHICH ANY DEVELOPMENT ASSISTANCE IS APPLIED.
  (M)  "STATE  GRANTING  BODY"  MEANS  THE  DEPARTMENT,  ANY OTHER STATE
DEPARTMENT OR STATE AGENCY THAT PROVIDES DEVELOPMENT ASSISTANCE THAT HAS
REPORTING REQUIREMENTS UNDER THIS ARTICLE, AND ANY SUCCESSOR AGENCIES TO
ANY OF THE PRECEDING.
  (N) "TEMPORARY JOB" MEANS A JOB IN WHICH THE NEW EMPLOYEE IS HIRED FOR
A SPECIFIC DURATION OF TIME OR SEASON.

S. 750                              3

  (O) "VALUE OF ASSISTANCE" MEANS THE FACE VALUE OF ANY FORM OF DEVELOP-
MENT ASSISTANCE.
S 1402. UNIFIED ECONOMIC DEVELOPMENT BUDGET.
  (A)  FOR EACH STATE FISCAL YEAR ENDING ON OR AFTER JUNE THIRTIETH, TWO
THOUSAND TEN, THE DEPARTMENT SHALL SUBMIT  AN  ANNUAL  UNIFIED  ECONOMIC
DEVELOPMENT  BUDGET  TO  THE  GOVERNOR, SENATE AND ASSEMBLY. THE UNIFIED
ECONOMIC DEVELOPMENT BUDGET SHALL BE DUE WITHIN THREE MONTHS  AFTER  THE
END  OF  THE  FISCAL  YEAR,  AND  SHALL PRESENT ALL TYPES OF DEVELOPMENT
ASSISTANCE GRANTED DURING THE PRIOR FISCAL YEAR, INCLUDING:
  (1) THE AGGREGATE AMOUNT OF UNCOLLECTED OR DIVERTED STATE TAX REVENUES
RESULTING FROM EACH TYPE OF DEVELOPMENT ASSISTANCE PROVIDED PURSUANT  TO
LAW,  AS  REPORTED  TO  THE  DEPARTMENT  ON TAX RETURNS FILED DURING THE
FISCAL YEAR.
  (2) ALL STATE DEVELOPMENT ASSISTANCE.
  (B) ALL DATA CONTAINED IN  THE  UNIFIED  ECONOMIC  DEVELOPMENT  BUDGET
PRESENTED TO THE GOVERNOR, SENATE AND ASSEMBLY SHALL BE FULLY SUBJECT TO
THE FREEDOM OF INFORMATION ACT.
  (C)  THE  DEPARTMENT  SHALL SUBMIT A REPORT OF THE AMOUNTS IN SUBPARA-
GRAPH ONE OF PARAGRAPH (A) OF THIS SECTION TO THE DEPARTMENT, WHICH  MAY
APPEND  SUCH  REPORT  TO  THE UNIFIED ECONOMIC DEVELOPMENT BUDGET RATHER
THAN SEPARATELY REPORTING SUCH AMOUNTS.
S 1403. STANDARDIZED APPLICATIONS FOR STATE DEVELOPMENT ASSISTANCE.
  (A) ALL FINAL APPLICATIONS SUBMITTED TO THE DEPARTMENT  OR  ANY  OTHER
STATE  GRANTING BODY REQUESTING DEVELOPMENT ASSISTANCE SHALL CONTAIN, AT
A MINIMUM:
  (1) AN APPLICATION TRACKING NUMBER THAT IS SPECIFIC TO BOTH THE  STATE
GRANTING AGENCY AND TO EACH APPLICATION.
  (2)  THE  OFFICE  MAILING  ADDRESS, OFFICE TELEPHONE NUMBER, AND CHIEF
OFFICER OF THE GRANTING BODY.
  (3) THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF  THE
CHIEF  OFFICER  OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR THE SPECIFIC
PROJECT SITE FOR WHICH DEVELOPMENT ASSISTANCE IS REQUESTED.
  (4) THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC  PROJECT
SITE ON THE DATE THAT THE APPLICATION IS SUBMITTED TO THE STATE GRANTING
BODY,  INCLUDING  THE NUMBER OF FULL-TIME, PERMANENT JOBS, THE NUMBER OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.
  (5) THE TYPE OF DEVELOPMENT ASSISTANCE AND VALUE OF  ASSISTANCE  BEING
REQUESTED.
  (6)  THE NUMBER OF JOBS TO BE CREATED AND RETAINED OR BOTH CREATED AND
RETAINED BY THE APPLICANT AS A RESULT  OF  THE  DEVELOPMENT  ASSISTANCE,
INCLUDING  THE  NUMBER  OF  FULL-TIME,  PERMANENT  JOBS,  THE  NUMBER OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.
  (7) A DETAILED LIST OF  THE  OCCUPATION  OR  JOB  CLASSIFICATIONS  AND
NUMBER  OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN FULL-TIME,
PERMANENT JOBS, A SCHEDULE OF ANTICIPATED  STARTING  DATES  OF  THE  NEW
HIRES  AND THE ANTICIPATED AVERAGE WAGE BY OCCUPATION OR JOB CLASSIFICA-
TION AND TOTAL PAYROLL TO BE CREATED AS  A  RESULT  OF  THE  DEVELOPMENT
ASSISTANCE.
  (8)  A  LIST  OF  ALL  OTHER  FORMS OF DEVELOPMENT ASSISTANCE THAT THE
APPLICANT IS REQUESTING FOR THE SPECIFIC PROJECT SITE AND  THE  NAME  OF
EACH STATE GRANTING BODY FROM WHICH THAT DEVELOPMENT ASSISTANCE IS BEING
REQUESTED.
  (9)  A NARRATIVE, IF NECESSARY, DESCRIBING WHY THE DEVELOPMENT ASSIST-
ANCE IS NEEDED AND HOW THE APPLICANT'S USE OF THE DEVELOPMENT ASSISTANCE
MAY REDUCE EMPLOYMENT AT ANY SITE IN NEW YORK.

S. 750                              4

  (10) A CERTIFICATION BY THE CHIEF OFFICER OF THE APPLICANT OR  HIS  OR
HER  AUTHORIZED  DESIGNEE THAT THE INFORMATION CONTAINED IN THE APPLICA-
TION SUBMITTED TO THE GRANTING BODY  CONTAINS  NO  KNOWING  MISREPRESEN-
TATION  OF MATERIAL FACTS UPON WHICH ELIGIBILITY FOR DEVELOPMENT ASSIST-
ANCE IS BASED.
  (B)  EVERY STATE GRANTING BODY EITHER SHALL COMPLETE, OR SHALL REQUIRE
THE APPLICANT TO COMPLETE, AN APPLICATION FORM THAT  MEETS  THE  MINIMUM
REQUIREMENTS  AS  PRESCRIBED  IN  THIS  SECTION  EACH  TIME AN APPLICANT
APPLIES FOR DEVELOPMENT ASSISTANCE COVERED BY THIS ARTICLE.
  (C) THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY  ANY  STANDARD-
IZED  APPLICATION  FOR STATE DEVELOPMENT ASSISTANCE REQUIRED UNDER PARA-
GRAPH (A) OF THIS SECTION FOR ANY GRANTS THAT ARE NOT GIVEN AS AN INCEN-
TIVE TO A RECIPIENT BUSINESS ORGANIZATION.
S 1404. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.
  (A) BEGINNING FEBRUARY FIRST, TWO THOUSAND ELEVEN AND EACH YEAR THERE-
AFTER, EVERY STATE GRANTING BODY SHALL SUBMIT TO THE  DEPARTMENT  COPIES
OF  ALL  DEVELOPMENT ASSISTANCE AGREEMENTS THAT IT APPROVED IN THE PRIOR
CALENDAR YEAR.
  (B) FOR EACH DEVELOPMENT ASSISTANCE AGREEMENT FOR WHICH  THE  DATE  OF
ASSISTANCE HAS OCCURRED IN THE PRIOR CALENDAR YEAR, EACH RECIPIENT SHALL
SUBMIT  TO  THE DEPARTMENT A PROGRESS REPORT THAT SHALL INCLUDE, BUT NOT
BE LIMITED TO, THE FOLLOWING:
  (1) THE APPLICATION TRACKING NUMBER.
  (2) THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF  THE
CHIEF OFFICER OF THE GRANTING BODY.
  (3)  THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF THE
CHIEF OFFICER OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR  THE  SPECIFIC
PROJECT  SITE  FOR  WHICH THE DEVELOPMENT ASSISTANCE WAS APPROVED BY THE
STATE GRANTING BODY.
  (4) THE TYPE OF DEVELOPMENT ASSISTANCE PROGRAM AND VALUE OF ASSISTANCE
THAT WAS APPROVED BY THE STATE GRANTING BODY.
  (5) THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC  PROJECT
SITE  ON THE DATE THAT THE APPLICATION WAS SUBMITTED TO THE STATE GRANT-
ING BODY AND THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT  THE  SPECIFIC
PROJECT  SITE  ON  THE  DATE  OF  THE  REPORT,  INCLUDING  THE NUMBER OF
FULL-TIME, PERMANENT JOBS, THE NUMBER OF PART-TIME JOBS, AND THE  NUMBER
OF TEMPORARY JOBS, AND A COMPUTATION OF THE GAIN OR LOSS OF JOBS IN EACH
CATEGORY.
  (6)  THE  NUMBER OF NEW EMPLOYEES AND RETAINED EMPLOYEES THE APPLICANT
STATED IN ITS DEVELOPMENT ASSISTANCE AGREEMENT, IF ANY, IF NOT, THEN  IN
ITS  APPLICATION,  WOULD BE CREATED BY THE DEVELOPMENT ASSISTANCE BROKEN
DOWN BY FULL-TIME, PERMANENT, PART-TIME, AND TEMPORARY.
  (7) A SWORN DECLARATION OF WHETHER THE RECIPIENT IS IN COMPLIANCE WITH
THE DEVELOPMENT ASSISTANCE AGREEMENT.
  (8) A DETAILED LIST OF  THE  OCCUPATION  OR  JOB  CLASSIFICATIONS  AND
NUMBER  OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN FULL-TIME,
PERMANENT JOBS, A SCHEDULE OF ANTICIPATED  STARTING  DATES  OF  THE  NEW
HIRES  AND  THE  ACTUAL AVERAGE WAGE BY OCCUPATION OR JOB CLASSIFICATION
AND TOTAL PAYROLL TO BE CREATED AS A RESULT OF THE  DEVELOPMENT  ASSIST-
ANCE.
  (9)  A  NARRATIVE, IF NECESSARY, DESCRIBING HOW THE RECIPIENT'S USE OF
THE DEVELOPMENT ASSISTANCE DURING THE REPORTING YEAR HAS REDUCED EMPLOY-
MENT AT ANY SITE IN NEW YORK.
  (10) A CERTIFICATION BY THE CHIEF OFFICER OF THE APPLICANT OR  HIS  OR
HER  AUTHORIZED  DESIGNEE  THAT  THE  INFORMATION IN THE PROGRESS REPORT

S. 750                              5

CONTAINS NO KNOWING  MISREPRESENTATION  OF  MATERIAL  FACTS  UPON  WHICH
ELIGIBILITY FOR DEVELOPMENT ASSISTANCE IS BASED.
  (C)  THE  STATE  GRANTING BODY, OR A SUCCESSOR AGENCY, SHALL HAVE FULL
AUTHORITY TO VERIFY INFORMATION CONTAINED IN  THE  RECIPIENT'S  PROGRESS
REPORT, INCLUDING THE AUTHORITY TO INSPECT THE SPECIFIC PROJECT SITE AND
INSPECT THE RECORDS OF THE RECIPIENT THAT ARE SUBJECT TO THE DEVELOPMENT
ASSISTANCE AGREEMENT.
  (D)  BY JUNE FIRST, TWO THOUSAND ELEVEN AND BY JUNE FIRST OF EACH YEAR
THEREAFTER, THE DEPARTMENT SHALL COMPILE AND PUBLISH ALL DATA IN ALL  OF
THE PROGRESS REPORTS IN BOTH WRITTEN AND ELECTRONIC FORM.
  (E)  IF  A  RECIPIENT  OF  DEVELOPMENT ASSISTANCE FAILS TO COMPLY WITH
PARAGRAPH (B) OF THIS SECTION, THE DEPARTMENT SHALL, WITHIN TWENTY WORK-
ING DAYS AFTER THE REPORTING SUBMITTAL DEADLINES SET FORTH IN SUCH PARA-
GRAPH (B), SUSPEND WITHIN THIRTY-THREE WORKING DAYS ANY CURRENT DEVELOP-
MENT ASSISTANCE TO SUCH  RECIPIENT  UNDER  ITS  CONTROL,  AND  SHALL  BE
PROHIBITED  FROM COMPLETING ANY CURRENT OR PROVIDING ANY FUTURE DEVELOP-
MENT ASSISTANCE UNTIL IT RECEIVES PROOF THAT  SUCH  RECIPIENT  HAS  COME
INTO COMPLIANCE WITH THE REQUIREMENTS OF PARAGRAPH (B) OF THIS SECTION.
  (F) THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY THE INFORMATION
REQUIRED  IN  THE  PROGRESS  REPORT REQUIRED UNDER PARAGRAPH (B) OF THIS
SECTION CONSISTENT WITH THE DISCLOSURE PURPOSE OF THIS SECTION  FOR  ANY
GRANTS THAT ARE NOT GIVEN AS AN INCENTIVE TO A RECIPIENT BUSINESS ORGAN-
IZATION.
S 1405. RECAPTURE.
  (A) ALL DEVELOPMENT ASSISTANCE AGREEMENTS SHALL CONTAIN, AT A MINIMUM,
THE FOLLOWING RECAPTURE PROVISIONS:
  (1) THE RECIPIENT MUST (I) MAKE THE LEVEL OF CAPITAL INVESTMENT IN THE
ECONOMIC  DEVELOPMENT  PROJECT  SPECIFIED  IN THE DEVELOPMENT ASSISTANCE
AGREEMENT; (II) CREATE OR RETAIN, OR BOTH, THE REQUISITE NUMBER OF JOBS,
PAYING NOT LESS THAN SPECIFIED WAGES FOR THE CREATED AND RETAINED  JOBS,
WITHIN AND FOR THE DURATION OF THE TIME PERIOD SPECIFIED IN THE DEVELOP-
MENT ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT.
  (2) IF THE RECIPIENT FAILS TO CREATE OR RETAIN THE REQUISITE NUMBER OF
JOBS  WITHIN  AND  FOR  THE  TIME  PERIOD  SPECIFIED, IN THE DEVELOPMENT
ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIP-
IENT SHALL BE DEEMED TO NO LONGER QUALIFY FOR THE STATE ECONOMIC ASSIST-
ANCE AND THE APPLICABLE RECAPTURE PROVISIONS SHALL TAKE EFFECT.
  (3) IF THE RECIPIENT RECEIVES STATE ECONOMIC ASSISTANCE IN THE FORM OF
AN EMPIRE ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW OR AN INDUSTRIAL DEVELOPMENT ZONE DESIGNATION PURSUANT  TO
ARTICLE  EIGHTEEN-A OF THE GENERAL MUNICIPAL LAW AND THE RECIPIENT FAILS
TO CREATE OR RETAIN THE REQUISITE NUMBER OF JOBS, AS DETERMINED  BY  THE
DEVELOPMENT  ASSISTANCE  AGREEMENT  WITHIN THE REQUISITE PERIOD OF TIME,
THE RECIPIENT SHALL BE REQUIRED TO PAY TO THE STATE THE FULL  AMOUNT  OF
THE  STATE  TAX  EXEMPTION  THAT  IT RECEIVED AS A RESULT OF SUCH DESIG-
NATION.
  (4) IF THE RECIPIENT RECEIVES A GRANT OR LOAN PURSUANT  TO  AN  EMPIRE
ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL
LAW  OR  AN  INDUSTRIAL DEVELOPMENT ZONE DESIGNATION PURSUANT TO ARTICLE
EIGHTEEN-A OF THE GENERAL MUNICIPAL  LAW  AND  THE  RECIPIENT  FAILS  TO
CREATE  OR  RETAIN  THE  REQUISITE NUMBER OF JOBS FOR THE REQUISITE TIME
PERIOD, AS PROVIDED IN THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIPI-
ENT SHALL BE REQUIRED TO REPAY TO THE STATE A PRO  RATA  AMOUNT  OF  THE
GRANT;  THAT  AMOUNT  SHALL  REFLECT  THE  PERCENTAGE  OF THE DEFICIENCY
BETWEEN THE REQUISITE NUMBER OF JOBS TO BE CREATED OR  RETAINED  BY  THE
RECIPIENT AND THE ACTUAL NUMBER OF SUCH JOBS IN EXISTENCE AS OF THE DATE

S. 750                              6

THE DEPARTMENT DETERMINES THE RECIPIENT IS IN BREACH OF THE JOB CREATION
OR  RETENTION  COVENANTS  CONTAINED IN THE DEVELOPMENT ASSISTANCE AGREE-
MENT. IF THE RECIPIENT OF DEVELOPMENT ASSISTANCE UNDER SUCH DESIGNATIONS
CEASES OPERATIONS AT THE SPECIFIC PROJECT SITE DURING A FIVE YEAR PERIOD
COMMENCING ON THE DATE OF ASSISTANCE, THE RECIPIENT SHALL BE REQUIRED TO
REPAY  THE  ENTIRE AMOUNT OF THE GRANT OR TO ACCELERATE REPAYMENT OF THE
LOAN BACK TO THE STATE.
  (5) IF THE RECIPIENT RECEIVES A TAX CREDIT UNDER ARTICLE EIGHTEEN-A OR
EIGHTEEN-B OF THE GENERAL  MUNICIPAL  LAW,  THE  DEVELOPMENT  ASSISTANCE
AGREEMENT  SHALL  PROVIDE  THAT  (I)  IF  THE  NUMBER OF NEW OR RETAINED
EMPLOYEES FALLS BELOW THE REQUISITE NUMBER SET FORTH IN THE  DEVELOPMENT
ASSISTANCE AGREEMENT, THE ALLOWANCE OF THE CREDIT SHALL BE AUTOMATICALLY
SUSPENDED  UNTIL  THE  NUMBER  OF  NEW  AND RETAINED EMPLOYEES EQUALS OR
EXCEEDS THE REQUISITE NUMBER IN THE  DEVELOPMENT  ASSISTANCE  AGREEMENT;
(II)  IF  THE  RECIPIENT DISCONTINUES OPERATIONS AT THE SPECIFIC PROJECT
SITE DURING THE FIRST FIVE YEARS OF THE TERM OF THE DEVELOPMENT  ASSIST-
ANCE  AGREEMENT,  THE  RECIPIENT  SHALL FORFEIT ALL CREDITS TAKEN BY THE
RECIPIENT DURING SUCH FIVE YEAR PERIOD; AND (III)  IN  THE  EVENT  OF  A
REVOCATION  OR  SUSPENSION  OF THE CREDIT, THE DEPARTMENT SHALL INITIATE
PROCEEDINGS AGAINST THE RECIPIENT TO RECOVER WRONGFULLY  EXEMPTED  STATE
INCOME  TAXES  AND  THE RECIPIENT SHALL PROMPTLY REPAY TO THE DEPARTMENT
ANY WRONGFULLY EXEMPTED STATE INCOME  TAXES.  THE  FORFEITED  AMOUNT  OF
CREDITS  SHALL  BE  DEEMED ASSESSED ON THE DATE THE DEPARTMENT INITIATES
PROCEEDINGS AGAINST SUCH RECIPIENT  AND  THE  RECIPIENT  SHALL  PROMPTLY
REPAY TO THE DEPARTMENT ANY WRONGFULLY EXEMPTED STATE INCOME TAXES.
  (B)  THE  COMMISSIONER  OF  TAXATION  AND  FINANCE  MAY ELECT TO WAIVE
ENFORCEMENT OF ANY CONTRACTUAL PROVISION ARISING OUT OF THE  DEVELOPMENT
ASSISTANCE  AGREEMENT  REQUIRED  BY THIS ARTICLE BASED ON A FINDING THAT
THE WAIVER IS NECESSARY TO AVERT AN IMMINENT AND  DEMONSTRABLE  HARDSHIP
TO  THE  RECIPIENT  THAT  MAY  RESULT  IN SUCH RECIPIENT'S INSOLVENCY OR
DISCHARGE OF WORKERS. IF A WAIVER IS GRANTED, THE RECIPIENT SHALL  AGREE
TO  A  CONTRACTUAL  MODIFICATION, INCLUDING RECAPTURE PROVISIONS, TO THE
DEVELOPMENT ASSISTANCE AGREEMENT. THE EXISTENCE OF  ANY  WAIVER  GRANTED
PURSUANT  TO  PARAGRAPH (C) OF THIS SECTION, THE DATE OF THE GRANTING OF
SUCH WAIVER, AND A BRIEF SUMMARY OF THE REASONS SUPPORTING THE  GRANTING
OF SUCH WAIVER SHALL BE DISCLOSED CONSISTENT WITH THE PROVISIONS OF THIS
SECTION.
  (C) BEGINNING JUNE FIRST, TWO THOUSAND TEN, THE DEPARTMENT SHALL ANNU-
ALLY  COMPILE  A  REPORT  ON THE OUTCOMES AND EFFECTIVENESS OF RECAPTURE
PROVISIONS BY PROGRAM, INCLUDING BUT  NOT  LIMITED  TO:  (I)  THE  TOTAL
NUMBER  OF  COMPANIES  THAT RECEIVE DEVELOPMENT ASSISTANCE AS DEFINED IN
THIS ARTICLE; (II) THE TOTAL NUMBER OF RECIPIENTS IN VIOLATION OF DEVEL-
OPMENT AGREEMENTS  WITH  THE  DEPARTMENT;  (III)  THE  TOTAL  NUMBER  OF
COMPLETED  RECAPTURE EFFORTS; (IV) THE TOTAL NUMBER OF RECAPTURE EFFORTS
INITIATED; AND (V) THE NUMBER OF WAIVERS GRANTED. SUCH REPORT  SHALL  BE
DISCLOSED  CONSISTENT  WITH  THE  PROVISIONS OF SECTION FOURTEEN HUNDRED
FOUR OF THIS ARTICLE.
  S 3. The public authorities law is amended by  adding  a  new  article
10-E to read as follows:
                               ARTICLE 10-E
              CORPORATE ACCOUNTABILITY FOR TAX EXPENDITURES
SECTION 3980. DEFINITIONS.
        3981. UNIFIED ECONOMIC DEVELOPMENT BUDGET.
        3982. STANDARDIZED  APPLICATIONS  FOR  STATE DEVELOPMENT ASSIST-
                ANCE.
        3983. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.

S. 750                              7

        3984. RECAPTURE.
  S 3980. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "BASE YEARS" MEANS THE FIRST TWO COMPLETE CALENDAR YEARS FOLLOWING
THE EFFECTIVE DATE OF A RECIPIENT RECEIVING DEVELOPMENT ASSISTANCE.
  2. "DATE OF ASSISTANCE" MEANS THE COMMENCEMENT DATE OF THE  ASSISTANCE
AGREEMENT,  WHICH DATE TRIGGERS THE PERIOD DURING WHICH THE RECIPIENT IS
OBLIGATED TO CREATE OR  RETAIN  JOBS  AND  CONTINUE  OPERATIONS  AT  THE
SPECIFIC PROJECT SITE.
  3. "DEFAULT" MEANS THAT A RECIPIENT HAS NOT ACHIEVED ITS JOB CREATION,
JOB  RETENTION,  OR  WAGE  OR  BENEFIT  GOALS, AS APPLICABLE, DURING THE
PRESCRIBED PERIOD THEREFOR.
  4. "DEPARTMENT" MEANS, UNLESS OTHERWISE NOTED, THE DEPARTMENT OF TAXA-
TION AND FINANCE OR ANY SUCCESSOR AGENCY.
  5. "DEVELOPMENT ASSISTANCE" MEANS (A) TAX CREDITS AND  TAX  EXEMPTIONS
(OTHER  THAN  GIVEN UNDER TAX INCREMENT FINANCING) GIVEN AS AN INCENTIVE
TO A RECIPIENT PUBLIC AUTHORITY PURSUANT TO AN INITIAL CERTIFICATION  OR
AN  INITIAL DESIGNATION MADE BY THE DEPARTMENT UNDER ARTICLES EIGHTEEN-A
OR EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW;
  (B) ALL SUCCESSOR AND SUBSEQUENT PROGRAMS AND TAX CREDITS DESIGNED  TO
PROMOTE  LARGE BUSINESS RELOCATIONS AND EXPANSIONS. "DEVELOPMENT ASSIST-
ANCE" DOES NOT INCLUDE  TAX  INCREMENT  FINANCING,  ASSISTANCE  PROVIDED
UNDER  ARTICLE  EIGHTEEN-A  OR  EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW
PURSUANT TO LOCAL ORDINANCE, PARTICIPATION LOANS,  OR  FINANCIAL  TRANS-
ACTIONS  THROUGH  STATUTORILY  AUTHORIZED  FINANCIAL  INTERMEDIARIES  IN
SUPPORT OF SMALL BUSINESS LOANS AND INVESTMENTS OR GIVEN  IN  CONNECTION
WITH THE DEVELOPMENT OF AFFORDABLE HOUSING.
  6.  "DEVELOPMENT ASSISTANCE AGREEMENT" MEANS ANY AGREEMENT EXECUTED BY
THE STATE GRANTING BODY AND THE RECIPIENT SETTING FORTH  THE  TERMS  AND
CONDITIONS  OF  DEVELOPMENT  ASSISTANCE  TO BE PROVIDED TO THE RECIPIENT
CONSISTENT  WITH  THE  FINAL  APPLICATION  FOR  DEVELOPMENT  ASSISTANCE,
INCLUDING  BUT  NOT  LIMITED TO THE DATE OF ASSISTANCE, SUBMITTED TO AND
APPROVED BY THE STATE GRANTING BODY.
  7. "FULL-TIME, PERMANENT JOB" MEANS A JOB IN WHICH  THE  NEW  EMPLOYEE
WORKS  FOR  THE  RECIPIENT  AT  A RATE OF AT LEAST THIRTY-FIVE HOURS PER
WEEK.
  8.  "NEW EMPLOYEE" MEANS A FULL-TIME, PERMANENT EMPLOYEE  WHO  REPRES-
ENTS  A  NET  INCREASE IN THE NUMBER OF THE RECIPIENT'S EMPLOYEES STATE-
WIDE. "NEW EMPLOYEE" INCLUDES AN EMPLOYEE WHO PREVIOUSLY  FILLED  A  NEW
EMPLOYEE POSITION WITH THE RECIPIENT WHO WAS REHIRED OR CALLED BACK FROM
A LAYOFF THAT OCCURS DURING OR FOLLOWING THE BASE YEARS.
  THE TERM "NEW EMPLOYEE" DOES NOT INCLUDE ANY OF THE FOLLOWING:
  (A) AN EMPLOYEE OF THE RECIPIENT WHO PERFORMS A JOB THAT WAS PREVIOUS-
LY  PERFORMED  BY ANOTHER EMPLOYEE IN THIS STATE, IF THAT JOB EXISTED IN
THIS STATE FOR AT LEAST SIX MONTHS BEFORE HIRING THE EMPLOYEE.
  (B) A CHILD, GRANDCHILD, PARENT, OR SPOUSE, OTHER THAN A SPOUSE WHO IS
LEGALLY SEPARATED FROM THE INDIVIDUAL,  OF  ANY  INDIVIDUAL  WHO  HAS  A
DIRECT  OR  INDIRECT  OWNERSHIP INTEREST OF AT LEAST FIVE PERCENT IN THE
PROFITS, CAPITAL, OR VALUE OF ANY MEMBER OF THE RECIPIENT.
  9. "PART-TIME JOB" MEANS A JOB IN WHICH THE NEW EMPLOYEE WORKS FOR THE
RECIPIENT AT A RATE OF LESS THAN THIRTY-FIVE HOURS PER WEEK.
  10. "RECIPIENT" MEANS ANY PUBLIC AUTHORITY CREATED  PURSUANT  TO  THIS
CHAPTER  THAT  RECEIVES ECONOMIC DEVELOPMENT ASSISTANCE OR OTHER LEGALLY
RECOGNIZED ENTITY OF SUCH A PUBLIC AUTHORITY.
  11. "RETAINED  EMPLOYEE"  MEANS  ANY  EMPLOYEE  DEFINED  AS  HAVING  A
FULL-TIME  OR  FULL-TIME EQUIVALENT JOB PRESERVED AT A SPECIFIC FACILITY
OR SITE, THE CONTINUANCE OF WHICH IS THREATENED BY A SPECIFIC AND DEMON-

S. 750                              8

STRABLE THREAT, WHICH SHALL BE SPECIFIED IN THE APPLICATION FOR DEVELOP-
MENT ASSISTANCE.
  12.  "SPECIFIC  PROJECT  SITE" MEANS THAT DISTINCT OPERATIONAL UNIT TO
WHICH ANY DEVELOPMENT ASSISTANCE IS APPLIED.
  13. "STATE GRANTING  BODY"  MEANS  THE  DEPARTMENT,  ANY  OTHER  STATE
DEPARTMENT OR STATE AGENCY THAT PROVIDES DEVELOPMENT ASSISTANCE THAT HAS
REPORTING REQUIREMENTS UNDER THIS ARTICLE, AND ANY SUCCESSOR AGENCIES TO
ANY OF THE PRECEDING.
  14. "TEMPORARY JOB" MEANS A JOB IN WHICH THE NEW EMPLOYEE IS HIRED FOR
A SPECIFIC DURATION OF TIME OR SEASON.
  15. "VALUE OF ASSISTANCE" MEANS THE FACE VALUE OF ANY FORM OF DEVELOP-
MENT ASSISTANCE.
  S 3981. UNIFIED ECONOMIC DEVELOPMENT BUDGET.  1. FOR EACH STATE FISCAL
YEAR ENDING ON OR AFTER JUNE THIRTIETH, TWO THOUSAND TEN, THE DEPARTMENT
SHALL SUBMIT AN ANNUAL UNIFIED ECONOMIC DEVELOPMENT BUDGET TO THE GOVER-
NOR,  SENATE AND ASSEMBLY. THE UNIFIED ECONOMIC DEVELOPMENT BUDGET SHALL
BE DUE WITHIN THREE MONTHS AFTER THE END OF THE FISCAL YEAR,  AND  SHALL
PRESENT  ALL  TYPES  OF  DEVELOPMENT ASSISTANCE GRANTED DURING THE PRIOR
FISCAL YEAR, INCLUDING:
  (A) THE AGGREGATE AMOUNT OF UNCOLLECTED OR DIVERTED STATE TAX REVENUES
RESULTING FROM EACH TYPE OF DEVELOPMENT ASSISTANCE PROVIDED PURSUANT  TO
LAW,  AS  REPORTED  TO  THE  DEPARTMENT  ON TAX RETURNS FILED DURING THE
FISCAL YEAR.
  (B) ALL STATE DEVELOPMENT ASSISTANCE.
  2. ALL DATA CONTAINED  IN  THE  UNIFIED  ECONOMIC  DEVELOPMENT  BUDGET
PRESENTED TO THE GOVERNOR, SENATE AND ASSEMBLY SHALL BE FULLY SUBJECT TO
THE FREEDOM OF INFORMATION ACT.
  3.  THE  DEPARTMENT  SHALL SUBMIT A REPORT OF THE AMOUNTS IN PARAGRAPH
(A) OF SUBDIVISION ONE OF THIS SECTION  TO  THE  DEPARTMENT,  WHICH  MAY
APPEND  SUCH  REPORT  TO  THE UNIFIED ECONOMIC DEVELOPMENT BUDGET RATHER
THAN SEPARATELY REPORTING SUCH AMOUNTS.
  S 3982. STANDARDIZED APPLICATIONS FOR  STATE  DEVELOPMENT  ASSISTANCE.
1. ALL FINAL APPLICATIONS SUBMITTED TO THE DEPARTMENT OR ANY OTHER STATE
GRANTING  BODY  REQUESTING  DEVELOPMENT  ASSISTANCE  SHALL CONTAIN, AT A
MINIMUM:
  (A) AN APPLICATION TRACKING NUMBER THAT IS SPECIFIC TO BOTH THE  STATE
GRANTING AGENCY AND TO EACH APPLICATION.
  (B)  THE  OFFICE  MAILING  ADDRESS, OFFICE TELEPHONE NUMBER, AND CHIEF
OFFICER OF THE GRANTING BODY.
  (C) THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF  THE
CHIEF  OFFICER  OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR THE SPECIFIC
PROJECT SITE FOR WHICH DEVELOPMENT ASSISTANCE IS REQUESTED.
  (D) THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC  PROJECT
SITE ON THE DATE THAT THE APPLICATION IS SUBMITTED TO THE STATE GRANTING
BODY,  INCLUDING  THE NUMBER OF FULL-TIME, PERMANENT JOBS, THE NUMBER OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.
  (E) THE TYPE OF DEVELOPMENT ASSISTANCE AND VALUE OF  ASSISTANCE  BEING
REQUESTED.
  (F)  THE NUMBER OF JOBS TO BE CREATED AND RETAINED OR BOTH CREATED AND
RETAINED BY THE APPLICANT AS A RESULT  OF  THE  DEVELOPMENT  ASSISTANCE,
INCLUDING  THE  NUMBER  OF  FULL-TIME,  PERMANENT  JOBS,  THE  NUMBER OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.
  (G) A DETAILED LIST OF  THE  OCCUPATION  OR  JOB  CLASSIFICATIONS  AND
NUMBER  OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN FULL-TIME,
PERMANENT JOBS, A SCHEDULE OF ANTICIPATED  STARTING  DATES  OF  THE  NEW
HIRES  AND THE ANTICIPATED AVERAGE WAGE BY OCCUPATION OR JOB CLASSIFICA-

S. 750                              9

TION AND TOTAL PAYROLL TO BE CREATED AS  A  RESULT  OF  THE  DEVELOPMENT
ASSISTANCE.
  (H)  A  LIST  OF  ALL  OTHER  FORMS OF DEVELOPMENT ASSISTANCE THAT THE
APPLICANT IS REQUESTING FOR THE SPECIFIC PROJECT SITE AND  THE  NAME  OF
EACH STATE GRANTING BODY FROM WHICH THAT DEVELOPMENT ASSISTANCE IS BEING
REQUESTED.
  (I)  A NARRATIVE, IF NECESSARY, DESCRIBING WHY THE DEVELOPMENT ASSIST-
ANCE IS NEEDED AND HOW THE APPLICANT'S USE OF THE DEVELOPMENT ASSISTANCE
MAY REDUCE EMPLOYMENT AT ANY SITE IN NEW YORK.
  (J) A CERTIFICATION BY THE CHIEF OFFICER OF THE APPLICANT  OR  HIS  OR
HER  AUTHORIZED  DESIGNEE THAT THE INFORMATION CONTAINED IN THE APPLICA-
TION SUBMITTED TO THE GRANTING BODY  CONTAINS  NO  KNOWING  MISREPRESEN-
TATION  OF MATERIAL FACTS UPON WHICH ELIGIBILITY FOR DEVELOPMENT ASSIST-
ANCE IS BASED.
  2. EVERY STATE GRANTING BODY EITHER SHALL COMPLETE, OR  SHALL  REQUIRE
THE  APPLICANT  TO  COMPLETE, AN APPLICATION FORM THAT MEETS THE MINIMUM
REQUIREMENTS AS PRESCRIBED  IN  THIS  SECTION  EACH  TIME  AN  APPLICANT
APPLIES FOR DEVELOPMENT ASSISTANCE COVERED BY THIS ARTICLE.
  3. THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY ANY STANDARDIZED
APPLICATION  FOR STATE DEVELOPMENT ASSISTANCE REQUIRED UNDER SUBDIVISION
ONE OF THIS SECTION FOR ANY GRANTS THAT ARE NOT GIVEN AS AN INCENTIVE TO
A RECIPIENT PUBLIC AUTHORITY.
  S 3983. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.  1. BEGINNING  FEBRU-
ARY  FIRST,  TWO  THOUSAND  ELEVEN AND EACH YEAR THEREAFTER, EVERY STATE
GRANTING BODY SHALL SUBMIT TO THE DEPARTMENT COPIES OF  ALL  DEVELOPMENT
ASSISTANCE AGREEMENTS THAT IT APPROVED IN THE PRIOR CALENDAR YEAR.
  2.  FOR  EACH  DEVELOPMENT  ASSISTANCE AGREEMENT FOR WHICH THE DATE OF
ASSISTANCE HAS OCCURRED IN THE PRIOR CALENDAR YEAR, EACH RECIPIENT SHALL
SUBMIT TO THE DEPARTMENT A PROGRESS REPORT THAT SHALL INCLUDE,  BUT  NOT
BE LIMITED TO, THE FOLLOWING:
  (A) THE APPLICATION TRACKING NUMBER.
  (B)  THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF THE
CHIEF OFFICER OF THE GRANTING BODY.
  (C) THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF  THE
CHIEF  OFFICER  OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR THE SPECIFIC
PROJECT SITE FOR WHICH THE DEVELOPMENT ASSISTANCE WAS  APPROVED  BY  THE
STATE GRANTING BODY.
  (D) THE TYPE OF DEVELOPMENT ASSISTANCE PROGRAM AND VALUE OF ASSISTANCE
THAT WAS APPROVED BY THE STATE GRANTING BODY.
  (E)  THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC PROJECT
SITE ON THE DATE THAT THE APPLICATION WAS SUBMITTED TO THE STATE  GRANT-
ING  BODY  AND THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC
PROJECT SITE ON  THE  DATE  OF  THE  REPORT,  INCLUDING  THE  NUMBER  OF
FULL-TIME,  PERMANENT JOBS, THE NUMBER OF PART-TIME JOBS, AND THE NUMBER
OF TEMPORARY JOBS, AND A COMPUTATION OF THE GAIN OR LOSS OF JOBS IN EACH
CATEGORY.
  (F) THE NUMBER OF NEW EMPLOYEES AND RETAINED EMPLOYEES  THE  APPLICANT
STATED  IN ITS DEVELOPMENT ASSISTANCE AGREEMENT, IF ANY, IF NOT, THEN IN
ITS APPLICATION, WOULD BE CREATED BY THE DEVELOPMENT  ASSISTANCE  BROKEN
DOWN BY FULL-TIME, PERMANENT, PART-TIME, AND TEMPORARY.
  (G) A SWORN DECLARATION OF WHETHER THE RECIPIENT IS IN COMPLIANCE WITH
THE DEVELOPMENT ASSISTANCE AGREEMENT.
  (H)  A  DETAILED  LIST  OF  THE  OCCUPATION OR JOB CLASSIFICATIONS AND
NUMBER OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN  FULL-TIME,
PERMANENT  JOBS,  A  SCHEDULE  OF  ANTICIPATED STARTING DATES OF THE NEW
HIRES AND THE ACTUAL AVERAGE WAGE BY OCCUPATION  OR  JOB  CLASSIFICATION

S. 750                             10

AND  TOTAL  PAYROLL TO BE CREATED AS A RESULT OF THE DEVELOPMENT ASSIST-
ANCE.
  (I)  A  NARRATIVE, IF NECESSARY, DESCRIBING HOW THE RECIPIENT'S USE OF
THE DEVELOPMENT ASSISTANCE DURING THE REPORTING YEAR HAS REDUCED EMPLOY-
MENT AT ANY SITE IN NEW YORK.
  (J) A CERTIFICATION BY THE CHIEF OFFICER OF THE APPLICANT  OR  HIS  OR
HER  AUTHORIZED  DESIGNEE  THAT  THE  INFORMATION IN THE PROGRESS REPORT
CONTAINS NO KNOWING  MISREPRESENTATION  OF  MATERIAL  FACTS  UPON  WHICH
ELIGIBILITY FOR DEVELOPMENT ASSISTANCE IS BASED.
  3.  THE  STATE  GRANTING  BODY, OR A SUCCESSOR AGENCY, SHALL HAVE FULL
AUTHORITY TO VERIFY INFORMATION CONTAINED IN  THE  RECIPIENT'S  PROGRESS
REPORT, INCLUDING THE AUTHORITY TO INSPECT THE SPECIFIC PROJECT SITE AND
INSPECT THE RECORDS OF THE RECIPIENT THAT ARE SUBJECT TO THE DEVELOPMENT
ASSISTANCE AGREEMENT.
  4.  BY  JUNE FIRST, TWO THOUSAND ELEVEN AND BY JUNE FIRST OF EACH YEAR
THEREAFTER, THE DEPARTMENT SHALL COMPILE AND PUBLISH ALL DATA IN ALL  OF
THE PROGRESS REPORTS IN BOTH WRITTEN AND ELECTRONIC FORM.
  5.  IF  A  RECIPIENT  OF  DEVELOPMENT  ASSISTANCE FAILS TO COMPLY WITH
SUBDIVISION TWO OF THIS SECTION, THE  DEPARTMENT  SHALL,  WITHIN  TWENTY
WORKING  DAYS  AFTER THE REPORTING SUBMITTAL DEADLINES SET FORTH IN SUCH
SUBDIVISION TWO, SUSPEND WITHIN THIRTY-THREE WORKING  DAYS  ANY  CURRENT
DEVELOPMENT ASSISTANCE TO SUCH RECIPIENT UNDER ITS CONTROL, AND SHALL BE
PROHIBITED  FROM COMPLETING ANY CURRENT OR PROVIDING ANY FUTURE DEVELOP-
MENT ASSISTANCE UNTIL IT RECEIVES PROOF THAT  SUCH  RECIPIENT  HAS  COME
INTO  COMPLIANCE  WITH  THE  REQUIREMENTS  OF  SUBDIVISION  TWO  OF THIS
SECTION.
  6. THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY THE  INFORMATION
REQUIRED  IN  THE PROGRESS REPORT REQUIRED UNDER SUBDIVISION TWO OF THIS
SECTION CONSISTENT WITH THE DISCLOSURE PURPOSE OF THIS SECTION  FOR  ANY
GRANTS THAT ARE NOT GIVEN AS AN INCENTIVE TO A RECIPIENT PUBLIC AUTHORI-
TY.
  S  3984.  RECAPTURE.    1. ALL DEVELOPMENT ASSISTANCE AGREEMENTS SHALL
CONTAIN, AT A MINIMUM, THE FOLLOWING RECAPTURE PROVISIONS:
  (A) THE RECIPIENT MUST (I) MAKE THE LEVEL OF CAPITAL INVESTMENT IN THE
ECONOMIC DEVELOPMENT PROJECT SPECIFIED  IN  THE  DEVELOPMENT  ASSISTANCE
AGREEMENT; (II) CREATE OR RETAIN, OR BOTH, THE REQUISITE NUMBER OF JOBS,
PAYING  NOT LESS THAN SPECIFIED WAGES FOR THE CREATED AND RETAINED JOBS,
WITHIN AND FOR THE DURATION OF THE TIME PERIOD SPECIFIED IN THE DEVELOP-
MENT ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT.
  (B) IF THE RECIPIENT FAILS TO CREATE OR RETAIN THE REQUISITE NUMBER OF
JOBS WITHIN AND FOR  THE  TIME  PERIOD  SPECIFIED,  IN  THE  DEVELOPMENT
ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIP-
IENT SHALL BE DEEMED TO NO LONGER QUALIFY FOR THE STATE ECONOMIC ASSIST-
ANCE AND THE APPLICABLE RECAPTURE PROVISIONS SHALL TAKE EFFECT.
  (C) IF THE RECIPIENT RECEIVES STATE ECONOMIC ASSISTANCE IN THE FORM OF
AN EMPIRE ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL  LAW OR AN INDUSTRIAL DEVELOPMENT ZONE DESIGNATION PURSUANT TO
ARTICLE EIGHTEEN-A OF THE GENERAL MUNICIPAL LAW AND THE RECIPIENT  FAILS
TO  CREATE  OR RETAIN THE REQUISITE NUMBER OF JOBS, AS DETERMINED BY THE
DEVELOPMENT ASSISTANCE AGREEMENT WITHIN THE REQUISITE  PERIOD  OF  TIME,
THE  RECIPIENT  SHALL BE REQUIRED TO PAY TO THE STATE THE FULL AMOUNT OF
THE STATE TAX EXEMPTION THAT IT RECEIVED AS  A  RESULT  OF  SUCH  DESIG-
NATION.
  (D)  IF  THE  RECIPIENT RECEIVES A GRANT OR LOAN PURSUANT TO AN EMPIRE
ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL
LAW OR AN INDUSTRIAL DEVELOPMENT ZONE DESIGNATION  PURSUANT  TO  ARTICLE

S. 750                             11

EIGHTEEN-A  OF  THE  GENERAL  MUNICIPAL  LAW  AND THE RECIPIENT FAILS TO
CREATE OR RETAIN THE REQUISITE NUMBER OF JOBS  FOR  THE  REQUISITE  TIME
PERIOD, AS PROVIDED IN THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIPI-
ENT  SHALL  BE  REQUIRED  TO REPAY TO THE STATE A PRO RATA AMOUNT OF THE
GRANT; THAT AMOUNT  SHALL  REFLECT  THE  PERCENTAGE  OF  THE  DEFICIENCY
BETWEEN  THE  REQUISITE  NUMBER OF JOBS TO BE CREATED OR RETAINED BY THE
RECIPIENT AND THE ACTUAL NUMBER OF SUCH JOBS IN EXISTENCE AS OF THE DATE
THE DEPARTMENT DETERMINES THE RECIPIENT IS IN BREACH OF THE JOB CREATION
OR RETENTION COVENANTS CONTAINED IN THE  DEVELOPMENT  ASSISTANCE  AGREE-
MENT. IF THE RECIPIENT OF DEVELOPMENT ASSISTANCE UNDER SUCH DESIGNATIONS
CEASES OPERATIONS AT THE SPECIFIC PROJECT SITE DURING A FIVE YEAR PERIOD
COMMENCING ON THE DATE OF ASSISTANCE, THE RECIPIENT SHALL BE REQUIRED TO
REPAY  THE  ENTIRE AMOUNT OF THE GRANT OR TO ACCELERATE REPAYMENT OF THE
LOAN BACK TO THE STATE.
  (E) IF THE RECIPIENT RECEIVES A TAX CREDIT UNDER ARTICLE EIGHTEEN-A OR
EIGHTEEN-B OF THE GENERAL  MUNICIPAL  LAW,  THE  DEVELOPMENT  ASSISTANCE
AGREEMENT  SHALL  PROVIDE  THAT  (I)  IF  THE  NUMBER OF NEW OR RETAINED
EMPLOYEES FALLS BELOW THE REQUISITE NUMBER SET FORTH IN THE  DEVELOPMENT
ASSISTANCE AGREEMENT, THE ALLOWANCE OF THE CREDIT SHALL BE AUTOMATICALLY
SUSPENDED  UNTIL  THE  NUMBER  OF  NEW  AND RETAINED EMPLOYEES EQUALS OR
EXCEEDS THE REQUISITE NUMBER IN THE  DEVELOPMENT  ASSISTANCE  AGREEMENT;
(II)  IF  THE  RECIPIENT DISCONTINUES OPERATIONS AT THE SPECIFIC PROJECT
SITE DURING THE FIRST FIVE YEARS OF THE TERM OF THE DEVELOPMENT  ASSIST-
ANCE  AGREEMENT,  THE  RECIPIENT  SHALL FORFEIT ALL CREDITS TAKEN BY THE
RECIPIENT DURING SUCH FIVE YEAR PERIOD; AND (III)  IN  THE  EVENT  OF  A
REVOCATION  OR  SUSPENSION  OF THE CREDIT, THE DEPARTMENT SHALL INITIATE
PROCEEDINGS AGAINST THE RECIPIENT TO RECOVER WRONGFULLY  EXEMPTED  STATE
INCOME  TAXES  AND  THE RECIPIENT SHALL PROMPTLY REPAY TO THE DEPARTMENT
ANY WRONGFULLY EXEMPTED STATE INCOME  TAXES.  THE  FORFEITED  AMOUNT  OF
CREDITS  SHALL  BE  DEEMED ASSESSED ON THE DATE THE DEPARTMENT INITIATES
PROCEEDINGS AGAINST SUCH RECIPIENT  AND  THE  RECIPIENT  SHALL  PROMPTLY
REPAY TO THE DEPARTMENT ANY WRONGFULLY EXEMPTED STATE INCOME TAXES.
  2.  THE  COMMISSIONER  OF  TAXATION  AND  FINANCE  MAY  ELECT TO WAIVE
ENFORCEMENT OF ANY CONTRACTUAL PROVISION ARISING OUT OF THE  DEVELOPMENT
ASSISTANCE  AGREEMENT  REQUIRED  BY THIS ARTICLE BASED ON A FINDING THAT
THE WAIVER IS NECESSARY TO AVERT AN IMMINENT AND  DEMONSTRABLE  HARDSHIP
TO  THE  RECIPIENT  THAT  MAY  RESULT  IN SUCH RECIPIENT'S INSOLVENCY OR
DISCHARGE OF WORKERS. IF A WAIVER IS GRANTED, THE RECIPIENT SHALL  AGREE
TO  A  CONTRACTUAL  MODIFICATION, INCLUDING RECAPTURE PROVISIONS, TO THE
DEVELOPMENT ASSISTANCE AGREEMENT. THE EXISTENCE OF  ANY  WAIVER  GRANTED
PURSUANT  TO SUBDIVISION THREE OF THIS SECTION, THE DATE OF THE GRANTING
OF SUCH WAIVER, AND A BRIEF SUMMARY OF THE REASONS SUPPORTING THE GRANT-
ING OF SUCH WAIVER SHALL BE DISCLOSED CONSISTENT WITH THE PROVISIONS  OF
THIS SECTION.
  3.  BEGINNING JUNE FIRST, TWO THOUSAND TEN, THE DEPARTMENT SHALL ANNU-
ALLY COMPILE A REPORT ON THE OUTCOMES  AND  EFFECTIVENESS  OF  RECAPTURE
PROVISIONS  BY  PROGRAM,  INCLUDING  BUT  NOT  LIMITED TO: (A) THE TOTAL
NUMBER OF AUTHORITIES THAT RECEIVE DEVELOPMENT ASSISTANCE AS DEFINED  IN
THIS  ARTICLE; (B) THE TOTAL NUMBER OF RECIPIENTS IN VIOLATION OF DEVEL-
OPMENT AGREEMENTS WITH THE DEPARTMENT; (C) THE TOTAL NUMBER OF COMPLETED
RECAPTURE EFFORTS; (D) THE TOTAL NUMBER OF RECAPTURE EFFORTS  INITIATED;
AND  (E)  THE  NUMBER OF WAIVERS GRANTED. SUCH REPORT SHALL BE DISCLOSED
CONSISTENT  WITH  THE  PROVISIONS   OF   SECTION   THIRTY-NINE   HUNDRED
EIGHTY-THREE OF THIS ARTICLE.
  S 4. This act shall take effect on the one hundred twentieth day after
it  shall  have become a law and shall apply to contracts and agreements

S. 750                             12

entered into on or after such effective  date;  provided  however,  that
effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive  date  is  authorized  and  directed to be made and completed on or
before such effective date.