S T A T E O F N E W Y O R K
________________________________________________________________________
5249
2019-2020 Regular Sessions
I N A S S E M B L Y
February 8, 2019
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Introduced by M. of A. KIM, STECK, BURKE -- read once and referred to
the Committee on Economic Development
AN ACT to amend the state finance law, in relation to creating an inter-
state compact prohibiting company-specific subsidies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The state finance law is amended by adding a new article 17
to read as follows:
ARTICLE 17
INTERSTATE COMPACT PROHIBITING
COMPANY-SPECIFIC SUBSIDIES
SECTION 250. SHORT TITLE; PURPOSE.
251. DEFINITIONS.
252. COMPACT.
253. ESTABLISHMENT OF THE BOARD.
254. ENTRY INTO COMPACT, WITHDRAWAL AND TERMINATION.
255. AMENDMENTS TO THE COMPACT.
256. CONSTRUCTION AND SEVERABILITY.
257. ADMINISTRATION; EXPENSES.
§ 250. SHORT TITLE; PURPOSE. THIS ARTICLE SHALL BE KNOWN AND MAY BE
CITED AS THE "INTERSTATE COMPACT PROHIBITING COMPANY-SPECIFIC SUBSIDES".
THE PURPOSE OF THIS COMPACT IS, THROUGH MEANS OF JOINT AND COOPERATIVE
ACTION AMONG THE COMPACTING STATES, TO ELIMINATE COMPANY-SPECIFIC SUBSI-
DIES.
§ 251. DEFINITIONS. AS USED IN THIS COMPACT, UNLESS THE CONTEXT CLEAR-
LY INDICATES OTHERWISE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
1. "COMPANY-SPECIFIC SUBSIDY" SHALL MEAN COMPANY-SPECIFIC TAX INCEN-
TIVES INCLUDING ANY CHANGE IN THE GENERAL TAX RATE OR VALUATION OFFERED
OR PRESENTED BY THE STATE TO A SPECIFIC COMPANY THAT IS NOT AVAILABLE TO
OTHER SIMILARLY SITUATED COMPANIES AND COMPANY-SPECIFIC GRANTS INCLUDING
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08668-01-9
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ANY DISBURSEMENT OF FUNDS, PROPERTY, CASH OR DEFERRED TAX LIABILITY
OFFERED BY THE STATE TO A SPECIFIC COMPANY. THE TERM "COMPANY-SPECIFIC
SUBSIDY" SHALL NOT INCLUDE WORKFORCE DEVELOPMENT GRANTS THAT PROVIDE
FUNDS FOR THE PURPOSE OF TRAINING EMPLOYEES.
2. "BY-LAWS" MEAN THOSE BY-LAWS ESTABLISHED BY THE BOARD FOR ITS
GOVERNANCE OR FOR DIRECTING OR CONTROLLING THE BOARD'S ACTIONS OR
CONDUCT.
3. "COMPACTING STATE" MEANS ANY STATE WHICH HAS ENACTED THIS COMPACT
LEGISLATION AND WHICH HAS NOT WITHDRAWN OR BEEN TERMINATED PURSUANT TO
SECTION TWO HUNDRED FIFTY-FOUR OF THIS ARTICLE.
4. "BOARD" MEANS THE "INTERSTATE COMPACT PROHIBITING COMPANY-SPECIFIC
SUBSIDIES BOARD" ESTABLISHED BY THE COMPACT.
5. "STATE" MEANS ANY STATE, DISTRICT OR TERRITORY OF THE UNITED STATES
OF AMERICA.
6. "COMPANY" MEANS ANY PROPRIETORSHIP, PARTNERSHIP, CORPORATION, OR
LIMITED LIABILITY COMPANY.
§ 252. COMPACT. 1. THE COMPACTING STATES HEREBY CREATE AND ESTABLISH A
COMPACT TO PROHIBIT ALL COMPANY-SPECIFIC SUBSIDIES. SUCH COMPACTING
STATES SHALL NOT PROVIDE ANY COMPANY-SPECIFIC SUBSIDY TO ANY COMPANY
WHOSE HEADQUARTERS, MANUFACTURING FACILITIES, OFFICE SPACE OR OTHER REAL
ESTATE DEVELOPMENTS ARE LOCATED IN THEIR STATE OR TO INCENTIVIZE ANY
COMPANY TO LOCATE THEIR HEADQUARTERS, MANUFACTURING FACILITIES, OFFICE
SPACE OR OTHER REAL ESTATE DEVELOPMENTS IN THEIR STATE.
2. EXISTING COMPANY-SPECIFIC SUBSIDIES SHALL NOT BE PROHIBITED BY THIS
COMPACT, HOWEVER, ANY MODIFICATION TO THE TERMS OF ANY EXISTING COMPA-
NY-SPECIFIC SUBSIDY SHALL BE CONSIDERED A NEW COMPANY-SPECIFIC SUBSIDY
AND SHALL NOT BE PERMITTED UNDER THE TERMS OF THE COMPACT.
§ 253. ESTABLISHMENT OF THE BOARD. 1. FOR THE PURPOSE OF ADMINISTERING
THE PROVISIONS OF THIS COMPACT AND TO SERVE AS A GOVERNING BODY FOR THE
RESOLUTION OF ALL MATTERS RELATING TO THE OPERATION OF THIS COMPACT, A
BOARD OF COMPACT ADMINISTRATORS IS ESTABLISHED. THE BOARD SHALL BE
COMPOSED OF ONE REPRESENTATIVE FROM EACH OF THE COMPACTING STATES TO BE
KNOWN AS THE COMPACT ADMINISTRATOR. THE COMPACT ADMINISTRATOR SHALL BE
APPOINTED BY THE GOVERNOR OF EACH PARTICIPATING STATE AND SHALL SERVE
AND BE SUBJECT TO REMOVAL IN ACCORDANCE WITH THE LAWS OF THE STATE HE OR
SHE REPRESENTS. A COMPACT ADMINISTRATOR MAY PROVIDE FOR THE DISCHARGE OF
HIS OR HER DUTIES AND THE PERFORMANCE OF HIS OR HER FUNCTION AS A BOARD
MEMBER BY AN ALTERNATE. AN ALTERNATE SHALL NOT BE ENTITLED TO SERVE
UNLESS WRITTEN NOTIFICATION OF HIS OR HER IDENTITY HAS BEEN GIVEN TO THE
BOARD.
2. THE BOARD SHALL CONVENE AT LEAST ONCE ANNUALLY AND SHALL BE RESPON-
SIBLE FOR COLLECTING TESTIMONY FROM INTERESTED PARTIES INCLUDING, BUT
NOT LIMITED TO, COMPACTING STATES, ORGANIZATIONS AND ASSOCIATIONS
REPRESENTING STATE LEGISLATORS, TAXPAYERS AND SUBJECT MATTER EXPERTS ON
HOW THE COMPACT CAN BE IMPROVED AND STRENGTHENED.
3. EACH MEMBER OF THE BOARD OF COMPACT ADMINISTRATORS SHALL BE ENTI-
TLED TO ONE VOTE. NO ACTION OF THE BOARD SHALL BE BINDING UNLESS AT A
MEETING AT WHICH A MAJORITY OF THE TOTAL NUMBER OF THE BOARD'S VOTES ARE
CAST IN FAVOR THEREOF. ACTION BY THE BOARD SHALL BE ONLY AT A MEETING AT
WHICH A MAJORITY OF THE COMPACTING STATES ARE REPRESENTED.
4. THE BOARD SHALL ELECT ANNUALLY FROM ITS MEMBERSHIP A CHAIR AND
VICE-CHAIR.
5. THE BOARD SHALL ADOPT BY-LAWS NOT INCONSISTENT WITH THE PROVISIONS
OF THIS COMPACT OR THE LAWS OF A COMPACTING STATE FOR THE CONDUCT OF ITS
BUSINESS AND SHALL HAVE THE POWER TO AMEND AND RESCIND ITS BY-LAWS.
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6. THE BOARD MAY ACCEPT FOR ANY OF ITS PURPOSES AND FUNCTIONS UNDER
THIS COMPACT ANY AND ALL DONATIONS AND GRANTS OF MONIES, EQUIPMENT,
SUPPLIES, MATERIALS AND SERVICES CONDITIONAL OR OTHERWISE, FROM ANY
STATE, THE UNITED STATES OR ANY GOVERNMENTAL AGENCY, AND MAY RECEIVE,
UTILIZE AND DISPOSE OF SAME.
7. THE BOARD MAY CONTRACT WITH, OR ACCEPT SERVICES OR PERSONNEL FROM,
ANY GOVERNMENTAL OR INTERGOVERNMENTAL AGENCY, INDIVIDUAL, FIRM OR CORPO-
RATION, OR ANY PRIVATE NONPROFIT ORGANIZATION OR INSTITUTION.
8. THE BOARD SHALL FORMULATE ALL NECESSARY PROCEDURES AND DEVELOP
UNIFORM FORMS AND DOCUMENTS FOR ADMINISTERING THE PROVISIONS OF THIS
COMPACT. ALL PROCEDURES AND FORMS ADOPTED PURSUANT TO BOARD ACTION SHALL
BE CONTAINED IN A COMPACT MANUAL.
§ 254. ENTRY INTO COMPACT, WITHDRAWAL AND TERMINATION. 1. THIS COMPACT
SHALL BECOME EFFECTIVE AT SUCH TIMES AS IT IS ADOPTED IN A SUBSTANTIALLY
SIMILAR FORM BY TWO OR MORE STATES.
2. (A) ENTRY INTO THE COMPACT SHALL BE MADE BY RESOLUTION OF RATIFICA-
TION EXECUTED BY THE AUTHORIZED OFFICIALS OF THE APPLYING STATE AND
SUBMITTED TO THE CHAIR OF THE BOARD.
(B) THE RESOLUTION SHALL SUBSTANTIALLY BE IN THE FORM AND CONTENT AS
PROVIDED IN THE COMPACT MANUAL AND SHALL INCLUDE THE FOLLOWING:
(I) A CITATION OF THE AUTHORITY FROM WHICH THE STATE IS EMPOWERED TO
BECOME A PARTY TO THIS COMPACT; AND
(II) AN AGREEMENT OF COMPLIANCE WITH THE TERMS AND PROVISIONS OF THIS
COMPACT.
(C) THE EFFECTIVE DATE OF ENTRY SHALL BE SPECIFIED BY THE APPLYING
STATE BUT SHALL NOT BE LESS THAN SIXTY DAYS AFTER NOTICE HAS BEEN GIVEN
BY THE CHAIR OF THE BOARD OF THE COMPACT ADMINISTRATORS.
3. A COMPACTING STATE MAY WITHDRAW FROM PARTICIPATING IN THIS COMPACT
BY OFFICIAL WRITTEN NOTICE TO EACH PARTICIPATING STATE, BUT WITHDRAWAL
SHALL NOT BECOME EFFECTIVE UNTIL NINETY DAYS AFTER THE NOTICE OF WITH-
DRAWAL IS GIVEN. THE NOTICE SHALL BE DIRECTED TO THE COMPACT ADMINISTRA-
TOR OF EACH COMPACTING STATE. NO WITHDRAWAL OF ANY STATE SHALL AFFECT
THE VALIDITY OF THIS COMPACT AS TO THE REMAINING PARTICIPATING STATES.
4. IF THE BOARD DETERMINES THAT ANY COMPACTING STATE HAS AT ANY TIME
VIOLATED ANY OF THE TERMS OR BY-LAWS OF THE COMPACT, THEN, AFTER NOTICE
AND HEARING AS SET FORTH IN THE BY-LAWS, MAY TERMINATE SUCH STATE FROM
THE COMPACT IF A WILLFUL VIOLATION HAS BEEN FOUND.
§ 255. AMENDMENTS TO THE COMPACT. 1. THIS COMPACT MAY BE AMENDED FROM
TIME TO TIME. AMENDMENTS SHALL BE PRESENTED IN RESOLUTION FORM TO THE
CHAIR OF THE BOARD OF COMPACT ADMINISTRATORS AND SHALL BE INITIATED BY
ONE OR MORE PARTICIPATING STATES.
2. ADOPTION OF AN AMENDMENT SHALL REQUIRE ENDORSEMENT BY ALL PARTIC-
IPATING STATES AND SHALL BECOME EFFECTIVE THIRTY DAYS AFTER THE DATE OF
THE LAST ENDORSEMENT.
§ 256. CONSTRUCTION AND SEVERABILITY. THIS COMPACT SHALL BE LIBERALLY
CONSTRUED SO AS TO EFFECTUATE THE PURPOSES STATED HEREIN. THE PROVISIONS
OF THIS COMPACT SHALL BE SEVERABLE AND IF ANY PHRASE, CLAUSE, SENTENCE
OR PROVISION OF THIS COMPACT IS DECLARED TO BE CONTRARY TO THE CONSTITU-
TION OF ANY COMPACTING STATE OR OF THE UNITED STATES, OR THE APPLICABIL-
ITY THEREOF TO ANY GOVERNMENT, AGENCY, INDIVIDUAL OR CIRCUMSTANCE IS
HELD INVALID, THE VALIDITY OF THE REMAINDER OF THIS COMPACT SHALL NOT BE
AFFECTED THEREBY. IF THIS COMPACT SHALL BE HELD CONTRARY TO THE CONSTI-
TUTION OF ANY COMPACTING STATE, THE COMPACT SHALL REMAIN IN FULL FORCE
AND EFFECT AS TO THE REMAINING STATES AND IN FULL FORCE AND EFFECT AS TO
THE PARTICIPATING STATE AFFECTED AS TO ALL SEVERABLE MATTERS.
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§ 257. ADMINISTRATION; EXPENSES. 1. THE COMPTROLLER OF THE STATE OF
NEW YORK SHALL FURNISH TO THE APPROPRIATE AUTHORITIES OF THE COMPACTING
STATES ANY INFORMATION OR DOCUMENTS REASONABLY NECESSARY TO FACILITATE
THE ADMINISTRATION OF THIS COMPACT.
2. THE COMPACT ADMINISTRATOR FROM THIS STATE IS NOT ENTITLED TO ANY
ADDITIONAL COMPENSATION FOR HIS OR HER SERVICE AS SUCH BUT IS ELIGIBLE
FOR REIMBURSEMENT FOR EXPENSES INCURRED IN CONNECTION WITH HIS OR HER
RESPONSIBILITIES AS COMPACT ADMINISTRATOR IN THE SAME MANNER AS EXPENSES
INCURRED IN CONNECTION WITH OTHER RESPONSIBILITIES OF HIS OR HER OFFICE
OR EMPLOYMENT.
§ 2. This act shall take effect upon the adoption of the interstate
compact prohibiting company-specific subsidies by two or more states;
and provided further that the comptroller of the state of New York shall
notify the legislative bill drafting commission upon the occurrence of
such adoption of the interstate compact prohibiting company-specific
subsidies by two or more states in order that the commission may main-
tain an accurate and timely effective data base of the official text of
the laws of the state of New York in furtherance of effecting the
provisions of section 44 of the legislative law and section 70-b of the
public officers law.