S T A T E   O F   N E W   Y O R K
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                                  7915

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              May 29, 2015
                               ___________

Introduced  by  M.  of  A.  MAGNARELLI -- (at request of the State Comp-
  troller) -- read once and referred to the Committee on  Local  Govern-
  ments

AN  ACT  to amend the general municipal law, in relation to the account-
  ability and efficiency of industrial development agencies and authori-
  ties

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

  Section  1.  Section  859-a of the general municipal law is amended by
adding three new subdivisions 4, 5 and 6 to read as follows:
  4. EACH AGENCY SHALL DEVELOP A STANDARD APPLICATION FORM, WHICH  SHALL
BE  USED  BY THE AGENCY TO ACCEPT REQUESTS FOR FINANCIAL ASSISTANCE FROM
ALL INDIVIDUALS, FIRMS,  COMPANIES,  DEVELOPERS  OR  OTHER  ENTITIES  OR
ORGANIZATIONS. THE STANDARD APPLICATION FORM SHALL BE SUBMITTED BY OR ON
BEHALF OF THE APPLICANT, AND SUBSCRIBED AND AFFIRMED UNDER THE PENALTIES
OF  PERJURY BY THE APPLICANT, OR ON BEHALF OF THE APPLICANT BY THE CHIEF
EXECUTIVE OFFICER OR SUCH OTHER INDIVIDUAL THAT IS  DULY  AUTHORIZED  TO
BIND THE APPLICANT, AS TRUE, ACCURATE AND COMPLETE TO THE BEST OF HIS OR
HER  KNOWLEDGE.  THE STANDARD APPLICATION FORM SHALL INCLUDE THE FOLLOW-
ING, AND MAY INCLUDE SUCH OTHER SUPPLEMENTAL INFORMATION  AS  DETERMINED
TO  BE  NECESSARY  AND  APPROPRIATE  BY THE AGENCY, INCLUDING SUPPORTING
DOCUMENTS AND INFORMATION PROVIDED BY OR ON BEHALF OF THE APPLICANT:
  (A) THE NAME AND ADDRESS OF THE PROJECT APPLICANT;
  (B) A DESCRIPTION OF THE PROPOSED PROJECT FOR WHICH FINANCIAL  ASSIST-
ANCE  IS REQUESTED, INCLUDING THE TYPE OF PROJECT, PROPOSED LOCATION AND
PURPOSE OF THE PROJECT;
  (C) THE AMOUNT AND  TYPE  OF  FINANCIAL  ASSISTANCE  BEING  REQUESTED,
INCLUDING THE ESTIMATED VALUE OF EACH TYPE OF TAX EXEMPTION SOUGHT TO BE
CLAIMED BY REASON OF AGENCY INVOLVEMENT IN THE PROJECT;
  (D)  A STATEMENT THAT THERE IS A LIKELIHOOD THAT THE PROJECT WOULD NOT
BE UNDERTAKEN BUT FOR THE FINANCIAL ASSISTANCE PROVIDED  BY  THE  AGENCY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11236-02-5
              

A. 7915                             2

OR,  IF  THE  PROJECT  COULD  BE UNDERTAKEN WITHOUT FINANCIAL ASSISTANCE
PROVIDED BY THE AGENCY, A STATEMENT INDICATING WHY THE PROJECT SHOULD BE
UNDERTAKEN BY THE AGENCY;
  (E)  AN  ESTIMATE OF CAPITAL COSTS OF THE PROJECT, INCLUDING ALL COSTS
OF REAL PROPERTY AND EQUIPMENT ACQUISITION AND BUILDING CONSTRUCTION  OR
RECONSTRUCTION, FINANCED FROM PRIVATE SECTOR SOURCES, AN ESTIMATE OF THE
PERCENTAGE  OF PROJECT COSTS FINANCED FROM PUBLIC SECTOR SOURCES, AND AN
ESTIMATE OF BOTH THE AMOUNT TO BE INVESTED  BY  THE  APPLICANT  AND  THE
AMOUNT TO BE BORROWED TO FINANCE THE PROJECT.
  (F)  THE  PROJECTED  NUMBER OF FULL TIME EQUIVALENT JOBS THAT WOULD BE
RETAINED AND THAT WOULD BE CREATED IF THE REQUEST FOR FINANCIAL  ASSIST-
ANCE  IS  GRANTED, THE PROJECTED TIMEFRAME FOR THE CREATION OF NEW JOBS,
THE ESTIMATED SALARY AND FRINGE BENEFIT AVERAGES OR RANGES  FOR  CATEGO-
RIES  OF  THE  JOBS THAT WOULD BE RETAINED OR CREATED IF THE REQUEST FOR
FINANCIAL ASSISTANCE IS GRANTED, AND AN ESTIMATE OF THE NUMBER OF  RESI-
DENTS  OF  THE  ECONOMIC  DEVELOPMENT  REGION AS ESTABLISHED PURSUANT TO
SECTION TWO HUNDRED THIRTY OF THE ECONOMIC DEVELOPMENT LAW OR THE  LABOR
MARKET  AREA  AS  DEFINED BY THE AGENCY, IN WHICH THE PROJECT IS LOCATED
THAT WOULD FILL SUCH JOBS.  THE LABOR MARKET AREA DEFINED BY THE  AGENCY
FOR THIS PURPOSE MAY INCLUDE NO MORE THAN SIX CONTIGUOUS COUNTIES IN THE
STATE, INCLUDING THE COUNTY IN WHICH THE PROJECT IS TO BE LOCATED;
  (G)  A  STATEMENT TO THE EFFECT THAT THE PROVISIONS OF SUBDIVISION ONE
OF SECTION EIGHT HUNDRED SIXTY-TWO OF THIS CHAPTER WILL NOT BE  VIOLATED
IF FINANCIAL ASSISTANCE IS PROVIDED FOR THE PROPOSED PROJECT;
  (H)  A STATEMENT THAT THE OWNER, OCCUPANT OR OPERATOR RECEIVING FINAN-
CIAL ASSISTANCE IS IN  SUBSTANTIAL  COMPLIANCE  WITH  APPLICABLE  LOCAL,
STATE  AND  FEDERAL TAX, WORKER PROTECTION AND ENVIRONMENTAL LAWS, RULES
AND REGULATIONS; AND
  (I) A STATEMENT ACKNOWLEDGING THAT THE  SUBMISSION  OF  ANY  KNOWINGLY
FALSE  OR  KNOWINGLY  MISLEADING  INFORMATION  MAY LEAD TO THE IMMEDIATE
TERMINATION OF ANY FINANCIAL ASSISTANCE  AND  THE  REIMBURSEMENT  OF  AN
AMOUNT  EQUAL  TO ALL OR PART OF ANY TAX EXEMPTIONS CLAIMED BY REASON OF
AGENCY INVOLVEMENT IN THE PROJECT.
  5. EACH AGENCY SHALL DEVELOP, AND ADOPT BY RESOLUTION, UNIFORM  CRITE-
RIA  FOR  THE EVALUATION AND SELECTION FOR EACH CATEGORY OF PROJECTS FOR
WHICH FINANCIAL ASSISTANCE WILL BE PROVIDED. AT A MINIMUM, THE  CRITERIA
SHALL  REQUIRE THAT, FOR EACH PROJECT, THE FOLLOWING MUST OCCUR PRIOR TO
THE APPROVAL OF THE PROVISION OF FINANCIAL ASSISTANCE:
  (A) AN ASSESSMENT BY THE AGENCY OF ALL MATERIAL  INFORMATION  INCLUDED
IN  CONNECTION  WITH THE APPLICATION FOR FINANCIAL ASSISTANCE, AS NECES-
SARY TO AFFORD A REASONABLE BASIS FOR THE  DECISION  BY  THE  AGENCY  TO
PROVIDE FINANCIAL ASSISTANCE FOR THE PROJECT;
  (B)  A WRITTEN COST-BENEFIT ANALYSIS BY THE AGENCY THAT IDENTIFIES THE
EXTENT TO WHICH A PROJECT  WILL  CREATE  OR  RETAIN  PERMANENT,  PRIVATE
SECTOR  JOBS;  THE ESTIMATED VALUE OF ANY TAX EXEMPTIONS TO BE PROVIDED;
THE AMOUNT OF PRIVATE SECTOR INVESTMENT GENERATED OR LIKELY TO BE GENER-
ATED BY THE  PROPOSED  PROJECT;  THE  LIKELIHOOD  OF  ACCOMPLISHING  THE
PROPOSED  PROJECT  IN  A  TIMELY  FASHION;  AND  THE EXTENT TO WHICH THE
PROPOSED PROJECT WILL PROVIDE ADDITIONAL SOURCES OF REVENUE FOR  MUNICI-
PALITIES  AND SCHOOL DISTRICTS; AND ANY OTHER PUBLIC BENEFITS THAT MIGHT
OCCUR AS A RESULT OF THE PROJECT;
  (C) A STATEMENT BY THE APPLICANT THAT THE PROJECT, AS OF THE  DATE  OF
THE  APPLICATION,  IS  IN  SUBSTANTIAL COMPLIANCE WITH ALL PROVISIONS OF
THIS ARTICLE INCLUDING, BUT NOT  LIMITED  TO,  THE  PROVISIONS  OF  THIS
SECTION  AND  SUBDIVISION ONE OF SECTION EIGHT HUNDRED SIXTY-TWO OF THIS
CHAPTER; AND

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  (D) IF THE PROJECT INVOLVES THE REMOVAL OR ABANDONMENT OF  A  FACILITY
OR PLANT WITHIN THE STATE, NOTIFICATION BY THE AGENCY TO THE CHIEF EXEC-
UTIVE OFFICER OR OFFICERS OF THE MUNICIPALITY OR MUNICIPALITIES IN WHICH
THE FACILITY OR PLANT WAS LOCATED.
  6.  EACH  AGENCY SHALL DEVELOP A UNIFORM AGENCY PROJECT AGREEMENT THAT
SETS FORTH TERMS AND CONDITIONS UNDER WHICH FINANCIAL  ASSISTANCE  SHALL
BE  PROVIDED.  THE UNIFORM AGENCY PROJECT AGREEMENT SHALL BE USED BY THE
AGENCY AND NO FINANCIAL ASSISTANCE SHALL BE PROVIDED IN THE  ABSENCE  OF
THE EXECUTION OF SUCH AN AGREEMENT. THE UNIFORM AGENCY PROJECT AGREEMENT
SHALL, AT A MINIMUM:
  (A)  DESCRIBE  THE PROJECT AND THE FINANCIAL ASSISTANCE, INCLUDING THE
AMOUNT AND TYPE, TO BE PROVIDED, AND THE AGENCY PURPOSE TO BE ACHIEVED;
  (B) REQUIRE EACH PROJECT OWNER, OCCUPANT OR OPERATOR RECEIVING  FINAN-
CIAL  BENEFITS  TO PROVIDE ANNUALLY A CERTIFIED STATEMENT AND DOCUMENTA-
TION: (I) ENUMERATING THE FULL TIME EQUIVALENT  JOBS  RETAINED  AND  THE
FULL  TIME  EQUIVALENT JOBS CREATED AS A RESULT OF THE FINANCIAL ASSIST-
ANCE, BY CATEGORY, INCLUDING FULL TIME EQUIVALENT  INDEPENDENT  CONTRAC-
TORS  OR  EMPLOYEES  OF INDEPENDENT CONTRACTORS THAT WORK AT THE PROJECT
LOCATION, AND (II) INDICATING THAT THE SALARY AND FRINGE  BENEFIT  AVER-
AGES OR RANGES FOR CATEGORIES OF JOBS RETAINED AND JOBS CREATED THAT WAS
PROVIDED  IN  THE  APPLICATION  IS STILL ACCURATE AND IF IT IS NOT STILL
ACCURATE, PROVIDING A REVISED LIST OF SALARY AND FRINGE BENEFIT AVERAGES
OR RANGES FOR CATEGORIES OF JOBS RETAINED AND JOBS CREATED.
  (C) INDICATE THE DATES WHEN PILOT PAYMENTS ARE TO BE MADE AND  PROVIDE
AN  ESTIMATE  OF  THE  AMOUNTS FOR EACH AFFECTED TAX JURISDICTION OF ANY
PAYMENTS IN LIEU OF TAXES THAT ARE INCLUDED AS PART OF THE  TRANSACTION,
OR FORMULA OR FORMULAS BY WHICH THOSE AMOUNTS MAY BE CALCULATED. IN LIEU
OF  PROVIDING SUCH INFORMATION, A COPY OF AN EXECUTED PAYMENT IN LIEU OF
TAX AGREEMENT THAT CONTAINS THE SAME INFORMATION MAY BE ATTACHED TO  THE
UNIFORM AGENCY PROJECT AGREEMENT;
  (E)  PROVIDE FOR THE SUSPENSION OR DISCONTINUANCE OF FINANCIAL ASSIST-
ANCE, OR FOR THE MODIFICATION OF ANY PAYMENT IN LIEU OF TAX AGREEMENT TO
REQUIRE INCREASED PAYMENTS, IN ACCORDANCE WITH POLICIES DEVELOPED BY THE
AGENCY PURSUANT TO SECTION EIGHT HUNDRED SEVENTY-FOUR OF THIS TITLE;
  (F) PROVIDE FOR THE RETURN OF ALL OR A PART OF THE  FINANCIAL  ASSIST-
ANCE  PROVIDED  FOR  THE PROJECT, INCLUDING ALL OR PART OF THE AMOUNT OF
ANY TAX EXEMPTIONS, WHICH SHALL  BE  REDISTRIBUTED  TO  THE  APPROPRIATE
AFFECTED  TAX JURISDICTION, AS PROVIDED FOR IN POLICIES DEVELOPED BY THE
AGENCY PURSUANT TO SECTION EIGHT HUNDRED  SEVENTY-FOUR  OF  THIS  TITLE,
UNLESS AGREED TO OTHERWISE BY ANY LOCAL TAXING JURISDICTION OR JURISDIC-
TIONS; AND
  (G)  PROVIDE  THAT THE OWNER, OCCUPANT OR OPERATOR RECEIVING FINANCIAL
ASSISTANCE SHALL CERTIFY, UNDER  PENALTY  OF  PERJURY,  THAT  IT  IS  IN
SUBSTANTIAL  COMPLIANCE  WITH  ALL  LOCAL, STATE AND FEDERAL TAX, WORKER
PROTECTION AND ENVIRONMENTAL LAWS, RULES AND REGULATIONS.
  S 2. Section 874 of the general municipal law  is  amended  by  adding
three new subdivisions 10, 11 and 12 to read as follows:
  (10)  EACH AGENCY SHALL DEVELOP POLICIES FOR THE SUSPENSION OR DISCON-
TINUANCE OF FINANCIAL ASSISTANCE, OR FOR THE MODIFICATION OF ANY PAYMENT
IN LIEU OF TAX AGREEMENT TO REQUIRE  INCREASED  PAYMENTS  UNDER  CIRCUM-
STANCES  AS  SPECIFIED IN THE POLICY, WHICH MAY INCLUDE BUT SHALL NOT BE
LIMITED TO EVENTS OF MATERIAL VIOLATION OF THE TERMS AND CONDITIONS OF A
PROJECT AGREEMENT.
  (11) EACH AGENCY SHALL DEVELOP POLICIES FOR THE RETURN  OF  ALL  OR  A
PART OF THE FINANCIAL ASSISTANCE PROVIDED FOR THE PROJECT, INCLUDING ALL
OR PART OF THE AMOUNT OF ANY TAX EXEMPTIONS, AS SPECIFIED IN THE POLICY,

A. 7915                             4

WHICH MAY INCLUDE BUT SHALL NOT BE LIMITED TO MATERIAL SHORTFALLS IN JOB
CREATION  AND  RETENTION PROJECTIONS OR MATERIAL VIOLATIONS OF THE TERMS
AND CONDITIONS OF PROJECT AGREEMENTS.  ALL SUCH RETURNED AMOUNTS OF  TAX
EXEMPTIONS SHALL BE REDISTRIBUTED TO THE APPROPRIATE AFFECTED TAX JURIS-
DICTION, UNLESS AGREED TO OTHERWISE BY ANY LOCAL TAXING JURISDICTION.
  (12)  EACH  AGENCY SHALL AT LEAST ANNUALLY ASSESS THE PROGRESS OF EACH
PROJECT FOR WHICH BONDS OR NOTES REMAIN  OUTSTANDING  OR  STRAIGHT-LEASE
TRANSACTIONS HAVE NOT TERMINATED, OR WHICH CONTINUE TO RECEIVE FINANCIAL
ASSISTANCE OR ARE OTHERWISE ACTIVE, TOWARD ACHIEVING THE INVESTMENT, JOB
RETENTION  OR  CREATION, OR OTHER OBJECTIVES OF THE PROJECT INDICATED IN
THE PROJECT APPLICATION. SUCH ASSESSMENTS SHALL  BE  PROVIDED  TO  BOARD
MEMBERS.
  S 3. This act shall take effect on the one hundred eightieth day after
it  shall  have  become  a law and shall apply to industrial development
agencies created pursuant to article 18-A of the general  municipal  law
and  shall  also  apply with full force and effect to the cities of Troy
and Auburn industrial development authorities  established  pursuant  to
the  public authorities law; provided, however, the provisions of subdi-
vision 12 of section 874 of  the  general  municipal  law  as  added  by
section  two  of  this  act  shall apply only to projects approved on or
after the effective date of this act.