S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6199
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 27, 2017
                                ___________
 
 Introduced  by  M.  of  A. OAKS, BARCLAY, GIGLIO, GRAF, NORRIS -- Multi-
   Sponsored by -- M.  of A. M. L. MILLER -- read once  and  referred  to
   the Committee on Governmental Operations
 
 AN  ACT  directing  the New York state comptroller, in coordination with
   the departments of economic development and taxation  and  finance  to
   conduct an audit of all state economic development programs
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature finds that the  state
 and local governments of New York play an important role in facilitating
 economic  development,  reducing  regulations  and the creation of jobs.
 State funding for economic development should  be  transparent,  stream-
 lined,  and  encourage job creation in all regions of the state.  Empire
 state  development  manages  statewide  economic  development   programs
 through  several  subsidiaries,  each  with  its own board and staff. In
 addition, there  are  approximately  twenty  state  agencies  performing
 economic  development  functions.  At  the  local  level,  there are one
 hundred fourteen industrial  development  agencies,  over  five  hundred
 local  development  corporations,  eighty-two  empire  zone  boards, one
 hundred  fourteen  business  improvement  districts,  forty-nine   urban
 renewal  and  community  development agencies, and ten regional economic
 development councils, all engaging in economic development activity.
   Most of the state's economic development  programs,  especially  those
 providing direct financial assistance, are operated by the department of
 economic  development  and the empire state development corporation. The
 majority of this business support is in the form of grants and loans  to
 businesses and to local units of government to fund economic development
 activities.  This  legislation  is  intended  to improve these important
 tools for economic development by streamlining applications and  report-
 ing,  strengthening  accountability  mechanisms, and encouraging quality
 job creation for all New Yorkers.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08425-01-7

 A. 6199                             2
 
   § 2. The New York state comptroller in coordination with  the  commis-
 sioners  of  the  departments  of  economic development and taxation and
 finance shall  conduct  an  audit  of  all  state  economic  development
 programs. Such audit shall include but not be limited to:
   (a) identifying all programs by type and funding source;
   (b)  identifying  the types of businesses that have received financial
 assistance;
   (c) reviewing information available on job creation or other  data  on
 economic expansion;
   (d)  analyzing  the  geographic  distribution  of financial assistance
 throughout the state;
   (e) reviewing a sample of loans and grants to determine  if  statutory
 requirements for the programs were followed; and
   (f)  reviewing  information available on economic development programs
 in other states.
   The New York state comptroller in coordination with the  commissioners
 of  the  departments  of  economic  development and taxation and finance
 shall develop all necessary rules and regulations to conduct an audit of
 New York  state  economic  development  programs  as  outlined  in  this
 section.    Following  the review and audit of such economic development
 programs the agencies shall recommend all necessary changes to make such
 economic development programs more transparent, streamlined, and  ensure
 that  such  programs  are meeting the goals of the laws that established
 them and providing for a return on investment to the state.  The results
 of this audit must be made available for public  review online by  Janu-
 ary 1, 2018.
   §  3.  After  the  conclusion  of  the  audit, the commissioner of the
 department of economic development in consultation with the commissioner
 of taxation and finance shall study  the  feasibility  of  reducing  the
 number  of  economic development programs currently offered by the state
 and its subsidiaries and replacing these programs with  one  centralized
 competitive program. A report of the study, outlining the impact of each
 of  the  above  steps,  shall  be filed with the governor, the temporary
 president of the senate, the minority leader of the senate, the  speaker
 of  the  assembly  and  the minority leader of the assembly on or before
 December 31, 2018.
   § 4. This act shall take effect immediately.