NY State Senate Bill 2017-S3096

Senate Bill S3096

2017-2018 Legislative Session

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

download bill text pdf

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 03, 2018	referred to local government
Jan 19, 2017	referred to local government

co-Sponsors

2017-S3096 (ACTIVE) - Details

See Assembly Version of this Bill:: A7411
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
2011-2012: S3393
2013-2014: S3118
2015-2016: S1585, A5921
2019-2020: S4373, A5162
2021-2022: S4671
2023-2024: S5279

2017-S3096 (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.

2017-S3096 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3096

 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.

*This act shall take effect on November 1st succeeding the date on
which it shall become law,

 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 :

2015-2016 : S.1585 - Referred to Local Gov't
2013-2014 : S.3118 - Referred to Local Gov't
2011-2012 : S.3393 - Referred to Local Gov't
2009-2010 : S.1918 - Died in Local Gov't
2007-2008 : S.4505 - Died in Local Gov't
2005-2006 : S.705/A.3234 - Died in Local Gov't / Died in Local Gov't
2003-2004 : S.1768/A.378 - Died in Local Gov't / Died in Local Gov't
2001-2002 : S.523/A.530 - Died in Local Gov't / Died in Local Local
Gov't
1999-2000 : S.7875/A.9849 - Died in Local Gov't / Died in Local Gov't

 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.

2017-S3096 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3096
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2017
                                ___________
 
 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:
   §  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.
                                                            LBD06584-01-7

 S. 3096                             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.
   § 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 S3096

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Sponsored By

Kevin S. Parker