S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    473
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Local Governments
 
 AN ACT to amend the general municipal law, in relation to requiring  the
   return  of  all  or  a part of the financial assistance provided for a
   project  where  the  project  has  material  shortfalls  or   material
   violations  and  preventing  the  use  of funds, financial incentives,
   subsidies or tax exemptions for projects already in development
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 11 of section 874 of the general municipal law,
 as added by chapter 563 of the laws of 2015, is amended and a new subdi-
 vision 13 is added to read as follows:
   (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,
 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. THE AGENCY SHALL IMPLEMENT SUCH
 POLICIES CREATED IN ACCORDANCE WITH THIS SUBDIVISION TO  RETURN  ALL  OR
 PART  OF  THE  FINANCIAL  ASSISTANCE  PROVIDED FOR ANY PROJECT WHERE THE
 AGENCY'S ANNUAL ASSESSMENT OF A PROJECT SHOWS MATERIAL SHORTFALLS IN JOB
 CREATION AND RETENTION PROJECTIONS OR MATERIAL VIOLATIONS OF  THE  TERMS
 AND  CONDITIONS  OF PROJECT AGREEMENTS.  IF SUCH MATERIAL SHORTFALLS ARE
 THE DIRECT RESULT OF FACTORS BEYOND THE  AGENCY'S  CONTROL,  THE  AGENCY
 MUST  NOTIFY THE AUTHORITY'S BUDGET OFFICE IN WRITING OF THE WAIVER WITH
 A COMPREHENSIVE EXPLANATION. All such returned amounts of tax exemptions
 shall be redistributed to the  appropriate  affected  tax  jurisdiction,
 unless agreed to otherwise by any local taxing jurisdiction.
   (13)  EXCEPT WHERE ENVIRONMENTAL CONTAMINATION REQUIRING A SIGNIFICANT
 INCREASE IN PROJECT COSTS IS DISCOVERED DURING THE  DEVELOPMENT  OF  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD01832-01-1

 A. 473                              2
 
 PROJECT  OR  WHERE  A  MUNICIPALITY  HAS  REASSESSED  ALL OR PART OF THE
 PROJECT SITE RESULTING IN AN INCREASE IN PROPERTY  TAXES  OF  MORE  THAN
 FIFTY  PERCENT, NO TAX EXEMPTIONS SHALL BE GRANTED TO ANY PROJECT IF THE
 PROJECT  IS  ALREADY IN DEVELOPMENT AT THE TIME SUCH PROJECT APPLIES FOR
 THE ISSUANCE OF THE TAX EXEMPTION.
   § 2. Section 854 of the general municipal law is amended by  adding  a
 new subdivision 21 to read as follows:
   (21)  "IN  DEVELOPMENT"  -  SHALL  MEAN  A  PROJECT  FOR  WHICH ACTIVE
 CONSTRUCTION, INCLUDING BUT NOT LIMITED TO ERECTION OF BUILDING  FOUNDA-
 TIONS OR STRUCTURE, HAS ALREADY COMMENCED.
   §  3.  Section 862 of the general municipal law is amended by adding a
 new subdivision 3 to read as follows:
   (3) EXCEPT WHERE ENVIRONMENTAL CONTAMINATION REQUIRING  A  SIGNIFICANT
 INCREASE  IN  PROJECT  COSTS IS DISCOVERED DURING THE DEVELOPMENT OF THE
 PROJECT OR WHERE A MUNICIPALITY  HAS  REASSESSED  ALL  OR  PART  OF  THE
 PROJECT  SITE  RESULTING  IN  AN INCREASE IN PROPERTY TAXES OF MORE THAN
 FIFTY PERCENT, NO FUNDS, FINANCIAL INCENTIVES OR SUBSIDIES OF THE AGENCY
 SHALL BE USED IN RESPECT OF ANY PROJECT WHICH IS ALREADY IN  DEVELOPMENT
 AT  THE  TIME SUCH PROJECT APPLIES FOR SUCH FUNDS, FINANCIAL ASSISTANCE,
 INCENTIVES OR SUBSIDIES.
   § 4. Paragraphs (h) and (i) of subdivision 4 of section 859-a  of  the
 general  municipal law, as added by chapter 563 of the laws of 2015, are
 amended and a new paragraph (j) is added to read as follows:
   (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[.]; AND
   (J)  A STATEMENT REQUIRING THAT IF A PROJECT APPLICANT HAS RECEIVED AN
 OFFER OF FINANCIAL ASSISTANCE FROM AN ECONOMIC  DEVELOPMENT  CORPORATION
 OR CORPORATIONS LOCATED OUTSIDE OF THE STATE THAT SUCH PROJECT APPLICANT
 DISCLOSE AND PROVIDE SUCH OFFER.
   § 5. This act shall take effect immediately.