NY State Senate Bill 2011-S3393

Senate Bill S3393

2011-2012 Legislative Session

Establishes additional procedures to be followed by industrial development agencies prior to making development loans

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Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to local government
Feb 18, 2011	referred to local government

co-Sponsors

2011-S3393 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Add §859-c, Gen Muni L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S1918
2013-2014: S3118
2015-2016: S1585
2017-2018: S3096
2019-2020: S4373
2021-2022: S4671
2023-2024: S5279

2011-S3393 (ACTIVE) - Summary

Establishes additional procedures to be followed by industrial development agencies prior to making loans; includes goals to be achieved by project such as job creation, continuance of business or industry, and public purpose to be attained.

2011-S3393 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3393

TITLE OF BILL:
An act
to amend the general municipal law, in relation to industrial
development agencies

PURPOSE:
This bill establishes additional procedures to be followed by
industrial development agencies prior to making industrial
development loans.

SUMMARY OF PROVISIONS:
The general municipal law is amended by adding a new section 859-c to
provide additional procedures to be followed by an agency making
industrial development loans which would include:

* Public purpose;

* Amount and type of assistance;

* Specific goals for job creation;

* Wage goals for jobs created;

* The financial obligation of the applicant if the goals in the

agreement are not met;

* A commitment by the applicant to continue operations on any site
where the assistance is used for at least five years;

* The name and address of the parent corporation, if any, of the
applicant, and;

* A list of all prior development assistance provided to the applicant
by other granting bodies in the preceding five years.

Additionally, the bill contains provisions related to which fiscal
bodies shall approve a development agreement.

JUSTIFICATION:
In certain instances, resources of the state which are distributed for
economic development initiatives are implemented in a manner neither
planned nor expected by the development agency issuing assistance.
This legislation would put in place a safeguard to ensure that the
intended purpose of the agreement, as consented to by both the
applicant and the industrial development agency would remain intact.

PRIOR LEGISLATIVE HISTORY:
2009-2010:  S.1918 - Died in Local Government
2007-2008   S.4505 - Died in Local Government
2005-2006   S.705  - Died in Local Government
2005-2006:  A.3234 - Died in Local Government
2003-2004:  S.1768 - Died in Local Government
2003-2004:  A.378  - Died in Local Government
2001-2002:  S.523  - Died in Local Government
2001-2001:  A.530  - Died in Local Government


1999-2000:  S.7875 - Died in Local Government
1999-2000:  A.9849 - Died in Local Government

FISCAL IMPLICATIONS:
Minimal.

EFFECTIVE DATE:
This act shall take effect on the first of November next
succeeding the date on which it shall have become law.

2011-S3393 (ACTIVE) - Bill Text download pdf

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

                                  3393

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 18, 2011
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT to amend the general municipal law,  in  relation  to  industrial
  development agencies

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

  Section 1. The general municipal  law  is  amended  by  adding  a  new
section 859-c to read as follows:
  S  859-C. ADDITIONAL PROCEDURES FOR FINANCIAL ASSISTANCE. 1.  PRIOR TO
PROVIDING FINANCIAL ASSISTANCE, THE AGENCY SHALL FOLLOW  CERTAIN  PROCE-
DURES WHICH MUST INCLUDE AT LEAST ALL OF THE FOLLOWING:
  (A)  A DESCRIPTION OF THE DEVELOPMENT ASSISTANCE, INCLUDING THE AMOUNT
AND TYPE. THE DESCRIPTION MUST INCLUDE THE  FAIR  MARKET  VALUE  OF  THE
DEVELOPMENT  ASSISTANCE TO THE RECIPIENT, INCLUDING THE VALUE OF CONVEY-
ING ANY PROPERTY AT LESS THAN A FAIR  MARKET  PRICE  AND  INCLUDING  ANY
OTHER  IN-KIND  BENEFITS TO THE PERSON RECEIVING THE DEVELOPMENT ASSIST-
ANCE.
  (B) A STATEMENT SPECIFYING THE  PUBLIC  PURPOSE  FOR  THE  DEVELOPMENT
ASSISTANCE.  THE  PUBLIC PURPOSE SPECIFIED IN THE DEVELOPMENT ASSISTANCE
AGREEMENT MAY NOT BE INCREASING THE TAX BASE. JOB RETENTION MAY BE SPEC-
IFIED IN THE DEVELOPMENT ASSISTANCE AGREEMENT AS A PUBLIC  PURPOSE  ONLY
IF  JOB LOSS BY THE PERSON RECEIVING THE DEVELOPMENT ASSISTANCE IS IMMI-
NENT AND DEMONSTRABLE.
  (C) THE GENERAL GOALS FOR THE DEVELOPMENT ASSISTANCE.
  (D) GOALS FOR THE NUMBER OF JOBS TO BE CREATED BY THE PERSON RECEIVING
THE DEVELOPMENT ASSISTANCE DURING THE TWO YEARS FOLLOWING THE  DATE  THE
DEVELOPMENT  ASSISTANCE IS GRANTED. THE GOALS MAY INCLUDE SEPARATE GOALS
FOR THE NUMBER OF PART-TIME JOBS AND FULL-TIME JOBS, AND IN CASES  WHERE
JOB  LOSS IS IMMINENT AND DEMONSTRABLE, SEPARATE GOALS FOR THE NUMBER OF
JOBS RETAINED.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09442-01-1

S. 3393                             2

  (E) WAGE GOALS FOR THE JOBS TO BE CREATED OR RETAINED  BY  THE  PERSON
RECEIVING  THE DEVELOPMENT ASSISTANCE DURING THE TWO YEARS FOLLOWING THE
DATE THE DEVELOPMENT ASSISTANCE IS GRANTED.
  (F)  A DESCRIPTION OF THE FINANCIAL OBLIGATION OF THE PERSON RECEIVING
THE DEVELOPMENT ASSISTANCE IF THE GOALS  SPECIFIED  IN  THE  DEVELOPMENT
ASSISTANCE AGREEMENT ARE NOT MET.
  (G) A STATEMENT EXPLAINING WHY THE DEVELOPMENT ASSISTANCE IS NEEDED TO
ACHIEVE  THE  PUBLIC  PURPOSE  SPECIFIED  IN  THE DEVELOPMENT ASSISTANCE
AGREEMENT.
  (H) A COMMITMENT BY THE PERSON RECEIVING THE DEVELOPMENT ASSISTANCE TO
CONTINUE OPERATIONS AT ANY SITE WHERE THE DEVELOPMENT ASSISTANCE IS USED
FOR AT LEAST FIVE YEARS AFTER THE DATE  THE  DEVELOPMENT  ASSISTANCE  IS
PROVIDED.
  (I)  THE  NAME  AND  ADDRESS OF THE PARENT CORPORATION OR OTHER PARENT
ENTITY, IF ANY, OF THE PERSON RECEIVING THE DEVELOPMENT ASSISTANCE.
  (J) A LIST OF  ALL  DEVELOPMENT  ASSISTANCE  PROVIDED  TO  THE  PERSON
RECEIVING  DEVELOPMENT  ASSISTANCE DURING THE IMMEDIATELY PRECEDING FIVE
YEARS BY OTHER GRANTING BODIES.
  2. A DEVELOPMENT AGREEMENT ENTERED INTO UNDER  THIS  ARTICLE  MUST  BE
APPROVED BY THE FOLLOWING:
  (A)  THE  FISCAL  BODY  OF THE COUNTY WHERE THE DEVELOPMENT ASSISTANCE
WILL BE USED, IF THE DEVELOPMENT ASSISTANCE  WILL  NOT  BE  USED  SOLELY
WITHIN A MUNICIPALITY.
  (B)  THE  MUNICIPAL FISCAL BODY, IF THE DEVELOPMENT ASSISTANCE WILL BE
USED ONLY WITHIN A MUNICIPALITY.
  3. IF DEVELOPMENT ASSISTANCE PROVIDED  BY  A  GRANTING  BODY  DIRECTLY
BENEFITS  MORE  THAN ONE PERSON, THE GRANTING BODY MUST ASSIGN A PROPOR-
TION OF THE DEVELOPMENT ASSISTANCE TO EACH PERSON RECEIVING  DEVELOPMENT
ASSISTANCE.  THE PROPORTION ASSIGNED BY THE GRANTING BODY TO EACH PERSON
MUST REFLECT A REASONABLE ESTIMATE OF THE PERSON'S SHARE  OF  THE  TOTAL
BENEFITS OF THE DEVELOPMENT ASSISTANCE.
  4.  (A)  THE  DEVELOPMENT ASSISTANCE AGREEMENT MUST INCLUDE PROVISIONS
THAT SPECIFY THE OBLIGATION OF  THE  PERSON  RECEIVING  THE  DEVELOPMENT
ASSISTANCE  TO  REPAY  THE DEVELOPMENT ASSISTANCE IF THE PERSON DOES NOT
MEET THE GOALS SPECIFIED BY THE DEVELOPMENT  ASSISTANCE  AGREEMENT.  THE
DEVELOPMENT  ASSISTANCE  AGREEMENT  MUST  REQUIRE AT LEAST THAT A PERSON
FAILING TO MEET THE GOALS MUST PAY BACK THE DEVELOPMENT ASSISTANCE  PLUS
INTEREST  TO THE GRANTING BODY. A REPAYMENT REQUIRED BY THIS SECTION MAY
BE PRORATED TO REFLECT PARTIAL FULFILLMENT OF GOALS. THE  INTEREST  RATE
USED  TO  CALCULATE  THE REPAYMENT MUST EQUAL THE GROSS DOMESTIC PRODUCT
IMPLICIT PRICE DEFLATOR FOR THE APPLICABLE PERIOD.
  (B) AN AGENCY MAY, AFTER A PUBLIC HEARING, EXTEND FOR  NOT  MORE  THAN
ONE  YEAR  THE  PERIOD  FOR MEETING THE GOALS SPECIFIED BY A DEVELOPMENT
ASSISTANCE AGREEMENT.
  5. A PERSON THAT FAILS TO MEET THE TERMS OF A  DEVELOPMENT  ASSISTANCE
AGREEMENT  MAY  NOT  RECEIVE  ADDITIONAL  DEVELOPMENT  ASSISTANCE FROM A
GRANTING BODY UNTIL THE EARLIER OF THE DATE:
  (A) FIVE YEARS AFTER THE PERSON'S FAILURE  TO  MEET  THE  TERMS  OF  A
DEVELOPMENT ASSISTANCE AGREEMENT; OR
  (B)  THE  PERSON  SATISFIES ITS REPAYMENT OBLIGATION UNDER SUBDIVISION
FOUR OF THIS SECTION.
  S 2. This act shall take effect on the first of November next succeed-
ing the date on which it shall have become a law.

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Senate Bill S3393

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Sponsored By

Kevin S. Parker