S. 4545 2
fore issued by such agency or by the municipality for or in behalf of
the agency, then the corporate existence of such agency shall thereupon
terminate and it shall thereupon be deemed to be and shall be dissolved.
(c) On or before March first of each year, the secretary of state
shall prepare a list of agencies which failed to file a certificate in
accordance with provisions of paragraph (a) of this subdivision within
the preceding calendar year and transmit a copy of such list to the
state comptroller and the commissioner of the department of economic
development. On or before March first of each year the commissioner of
the department of economic development shall prepare a list of agencies
which have dissolved pursuant to paragraph (b) of this subdivision or
have ceased to exist pursuant to section eight hundred eighty-two of
this chapter and shall transmit a copy of such list to the state comp-
troller.] THERE IS HEREBY ESTABLISHED TEN REGIONAL INDUSTRIAL DEVELOP-
MENT AGENCIES, ONE FOR EACH OF THE FOLLOWING REGIONS OF THE STATE:
(I) LONG ISLAND (WHICH CONSISTS OF SUFFOLK AND NASSAU COUNTIES);
(II) THE CITY OF NEW YORK (WHICH CONSISTS OF BRONX, NEW YORK, QUEENS,
BROOKLYN, AND RICHMOND COUNTIES);
(III) THE MID-HUDSON REGION (WHICH CONSISTS OF SULLIVAN, ULSTER,
DUTCHESS, ORANGE, PUTNAM, WESTCHESTER, AND ROCKLAND COUNTIES);
(IV) THE SOUTHERN TIER (WHICH CONSISTS OF STEUBEN, SCHUYLER, TOMPKINS,
CHEMUNG, TIOGA, CHENANGO, BROOME, AND DELAWARE COUNTIES);
(V) THE CAPITAL REGION (WHICH CONSISTS OF WARREN, WASHINGTON, SARATO-
GA, SCHENECTADY, RENSSELAER, ALBANY, COLUMBIA, AND GREENE COUNTIES);
(VI) THE MOHAWK VALLEY (WHICH CONSISTS OF ONEIDA, HERKIMER, FULTON,
MONTGOMERY, OTSEGO, AND SCHOHARIE COUNTIES);
(VII) THE NORTH COUNTRY (WHICH CONSISTS OF CLINTON, FRANKLIN, ST.
LAWRENCE, JEFFERSON, LEWIS, HAMILTON, AND ESSEX COUNTIES);
(VIII) THE CENTRAL REGION (WHICH CONSISTS OF OSWEGO, CAYUGA, ONONDAGA,
MADISON, AND CORTLAND COUNTIES);
(IX) THE FINGER LAKES REGION (WHICH CONSISTS OF ORLEANS, MONROE,
WAYNE, GENESEE, WYOMING, LIVINGSTON, ONTARIO, SENECA, AND YATES COUN-
TIES); AND
(X) THE WESTERN REGION (WHICH CONSISTS OF NIAGARA, ERIE, CHAUTAUQUA,
CATTARAUGUS, AND ALLEGANY COUNTIES).
(B) ANY MUNICIPAL INDUSTRIAL DEVELOPMENT AGENCY ESTABLISHED UNDER THE
FORMER TITLE TWO OF THIS ARTICLE SHALL CONSOLIDATE INTO THE REGIONAL
ENTITY WHERE SUCH MUNICIPAL INDUSTRIAL DEVELOPMENT AGENCY WAS LOCATED.
2. An agency shall be a corporate governmental agency, constituting a
public benefit corporation. Except as otherwise provided by special act
of the legislature, an agency shall consist of not less than [three nor
more than seven] FIFTEEN members who shall be appointed by the governing
body of each [municipality and who] COUNTY WITHIN THE AGENCY IN PROPOR-
TION TO THE POPULATION WITHIN THAT REGIONAL JURISDICTION OF THAT AGENCY,
PROVIDED THAT EACH COUNTY SHOULD BE ENTITLED TO AT LEAST ONE MEMBER. A
MEMBER shall serve at the pleasure of the appointing authority. Such
members may include representatives of local government, school boards,
organized labor and business. A member shall continue to hold office
until his OR HER successor is appointed and has qualified. The [govern-
ing body of each municipality] APPOINTED MEMBERS shall designate the
first chairman and file with the secretary of state a certificate of
appointment or reappointment of any member. Such members shall receive
no compensation for their services but shall be entitled to the neces-
sary expenses, including traveling expenses, incurred in the discharge
of their duties.
3. A majority of the members of an agency shall constitute a quorum.
S. 4545 3
4. Any one or more of the members of an agency may be an official or
an employee of [the] A municipality IN A COUNTY UNDER THE JURISDICTION
OF THE AGENCY. In the event that an official or an employee of the muni-
cipality shall be appointed as a member of the agency, acceptance or
retention of such appointment shall not be deemed a forfeiture of his OR
HER municipal office or employment, or incompatible therewith or affect
his OR HER tenure or compensation in any way. [The term of office of a
member of an agency who is an official or an employee of the munici-
pality when appointed as a member thereof by special act of the legisla-
ture creating the industrial development agency shall terminate at the
expiration of the term of his municipal office.]
§ 2. Subdivisions 1, 4 and 11 of section 854 of the general municipal
law, subdivision 1 as added by chapter 1030 of the laws of 1969, subdi-
vision 4 as amended by section 5 of part X of chapter 59 of the laws of
2021 and subdivision 11 as added by chapter 803 of the laws of 1980, are
amended to read as follows:
(1) "Agency" OR "IDA"--shall mean [an Industrial Development Agency
created pursuant to this act] THE REGIONAL INDUSTRIAL DEVELOPMENT AGENCY
ESTABLISHED IN EACH REGION OF THE STATE, PURSUANT TO SUBDIVISION ONE OF
SECTION EIGHT HUNDRED FIFTY-SIX OF THIS TITLE.
(4) "Project" - shall mean any land, any building or other improve-
ment, and all real and personal properties located within the state of
New York and within or outside or partially within and partially outside
the [municipality] REGION for whose benefit the agency was created,
including, but not limited to, machinery, equipment and other facilities
deemed necessary or desirable in connection therewith, or incidental
thereto, whether or not now in existence or under construction, which
shall be suitable for manufacturing, warehousing, research, commercial,
renewable energy or industrial purposes or other economically sound
purposes identified and called for to implement a state designated urban
cultural park management plan as provided in title G of the parks,
recreation and historic preservation law and which may include or mean
an industrial pollution control facility, a recreation facility, educa-
tional or cultural facility, a horse racing facility, a railroad facili-
ty, a renewable energy project or an automobile racing facility,
provided, however, no agency shall use its funds or provide financial
assistance in respect of any project wholly or partially outside the
[municipality] REGION for whose benefit the agency was created without
the prior consent thereto by the governing body or bodies of all the
[other] municipalities in which a part or parts of the project is AND
THE CORRESPONDING AGENCY FOR SUCH REGION, or is to be, located, and such
portion of the project located outside such [municipality] REGION for
whose benefit the agency was created shall be contiguous with the
portion of the project inside such [municipality] REGION.
(11) "Railroad facility"--shall mean, but shall not be limited to,
railroad rights-of-way, beds, bridges, viaducts, tracks, switches and
rolling stock and any other attendant structure, equipment, facility or
property necessary or appropriate to railroading conducted in conjunc-
tion with industrial, [commerical] COMMERCIAL, manufacturing, recre-
ational or warehousing operations; provided, however, that (i) no agency
shall itself operate a railroad facility for freight or passenger
service, but may lease or otherwise make such facility available to an
operator, subject to an agreement for the maintenance and operation of
such facility for freight or passenger service, provided that passenger
service does not constitute the primary purpose of the railroad facili-
ty; (ii) prior to undertaking any project involving acquisition,
S. 4545 4
construction, reconstruction, improvement, maintenance, equipping or
furnishing of a railroad facility, an agency shall submit its plans for
the proposed project to the commissioner of transportation; the commis-
sioner shall, within sixty days of his OR HER receipt of the proposal,
submit an analysis of the financial and operational feasibility of the
proposed project, along with any recommendations for modification for
improving the project's viability, to the agency, the governor, the
commissioner of commerce, the temporary president of the senate, the
speaker of the assembly and the governing body of the municipality in
which the [agency] PROPOSED PROJECT is located; and (iii) no agency
shall enter into any contract for the acquisition, construction, recon-
struction, improvement, maintenance, equipping or furnishing of a rail-
road facility until fifteen days after the submission of the analysis
and recommendations of the commissioner of transportation, or seventy-
five days after submission of the agency's plan to the commissioner,
whichever is earlier.
§ 3. The opening paragraph and subdivisions 6, 7 and 8 of section 858
of the general municipal law, the opening paragraph as amended by
section 6 of part X of chapter 59 of the laws of 2021, subdivision 6 as
added by chapter 1030 of the laws of 1969, subdivision 7 as amended by
chapter 559 of the laws of 2021 and subdivision 8 as amended by chapter
356 of the laws of 1993, are amended to read as follows:
The purposes of the agency shall be to promote, develop, encourage and
assist in the acquiring, constructing, reconstructing, improving, main-
taining, equipping and furnishing industrial, manufacturing, warehous-
ing, commercial, research, renewable energy and recreation facilities
including industrial pollution control facilities, educational or
cultural facilities, railroad facilities, horse racing facilities, auto-
mobile racing facilities, renewable energy projects and continuing care
retirement communities, [provided, however, that, of agencies governed
by this article, only agencies created for the benefit of a county and
the agency created for the benefit of the city of New York shall be
authorized to provide financial assistance in any respect to a continu-
ing care retirement community,] and thereby advance the job opportu-
nities, health, general prosperity and economic welfare of the people of
the state of New York and to improve their recreation opportunities,
prosperity and standard of living; and to carry out the aforesaid
purposes, each agency shall have the following powers:
(6) With the consent of [the] A municipality UNDER THE JURISDICTION OF
THE AGENCY, to use agents, employees and facilities of the municipality,
paying the municipality its agreed proportion of the compensation or
costs;
(7) To appoint officers, agents and employees, to prescribe their
qualifications and to fix their compensation and to pay the same out of
funds of the agency, provided, however, that an elected officer of [the]
A municipality UNDER THE JURISDICTION OF THE AGENCY may not serve as a
compensated officer, agent or employee of the agency;
(8) (a) To appoint an attorney, who may be the counsel of [the] A
municipality UNDER THE JURISDICTION OF THE AGENCY, and to fix the attor-
ney's compensation for services which shall be payable to the attorney,
and to retain and employ private consultants for professional and tech-
nical assistance and advice;
(b) An attorney acting as bond counsel for a project must file with
the agency a written statement in which the attorney identifies each
party to the transaction which such attorney represents. If bond counsel
provides any legal services to parties other than the agency the written
S. 4545 5
statement must describe the nature of legal services provided by such
bond counsel to all parties to the transaction, including the nature of
the services provided to the agency.
§ 4. Paragraphs (b) and (e) of subdivision 1 and subdivisions 2 and 3
of section 859 of the general municipal law, paragraph (b), the opening
paragraph of paragraph (e) and subparagraph (v) of paragraph (e) of
subdivision 1 as amended by chapter 357 of the laws of 1993, paragraph
(e) of subdivision 1 and subdivision 3 as added and subdivision 2 as
amended by chapter 356 of the laws of 1993, are amended to read as
follows:
(b) Within ninety days following the close of its fiscal year, each
agency [or authority] shall prepare a financial statement for that
fiscal year in such form as may be prescribed by the state comptroller.
Such statement shall be audited within such [ninety day] NINETY-DAY
period by an independent certified public accountant in accordance with
government accounting standards established by the United States general
accounting office. The audited financial statement shall include supple-
mental schedules listing all straight-lease transactions and bonds and
notes issued, outstanding or retired during the applicable accounting
period whether or not such bonds, notes or transactions are considered
obligations of the agency. For each issue of bonds or notes such sched-
ules shall provide the name of each project financed with proceeds of
each issue, and whether the project occupant is a not-for-profit corpo-
ration, the name and address of each owner of each project, the esti-
mated amount of tax exemptions authorized for each project, the purpose
for which each bond or note was issued, date of issue, interest rate at
issuance and if variable the range of interest rates applicable, maturi-
ty date, federal tax status of each issue, and an estimate of the number
of jobs created and retained by each project. For each straight-lease
transaction, such schedules shall provide the name of each project, and
whether the project occupant is a not-for-profit corporation, the name
and address of each owner of each project, the estimated amount of tax
exemptions authorized for each project, the purpose for which each tran-
saction was made, the method of financial assistance utilized by the
project, other than the tax exemptions claimed by the project and an
estimate of the number of jobs created and retained by each project.
(e) If an agency [or authority] shall fail to file or substantially
complete, as determined by the state comptroller, the financial state-
ment required by this section, the state comptroller shall provide
notice to the agency [or authority]. The notice shall state the follow-
ing:
(i) that the failure to file a financial statement as required is a
violation of this section, or in the case of an insufficient financial
statement, the manner in which the financial statement submitted is
deficient;
(ii) that the agency [or authority] has thirty days to comply with
this section or provide an adequate written explanation to the comp-
troller of the agency's [or authority's] reasons for the inability to
comply; and
(iii) that the agency's [or authority's] failure to provide either the
required financial statement or an adequate explanation will result in
the notification [of the chief executive officer of the municipality for
whose benefit the agency or authority was created] of [the] SUCH agen-
cy's noncompliance with this section. Where such agency [or authority]
has failed to file the required statement, the comptroller shall addi-
tionally notify the agency [or authority] that continued failure to file
S. 4545 6
the required statement may result in loss of the agency's [or authori-
ty's] authority to provide exemptions from state taxes.
(iv) If an agency [or authority] after thirty days has failed to file
the required statement or the explanation in the manner required by
subparagraph (i) of this paragraph, or provides an insufficient explana-
tion, the comptroller shall notify the [chief executive officer of the
municipality for whose benefit the agency or authority was created and
the] agency of [the] SUCH agency's [or authority's] noncompliance with
this section. Such notice from the state comptroller shall further
delineate in what respect the agency [or authority] has failed to comply
with this section. If the agency [or authority] has failed to file the
required statement, the notice shall additionally state that continued
failure to file the required statement may result in loss of the agen-
cy's [or authority's] authority to provide exemptions from state taxes.
(v) If, thirty days after notification of the [chief executive officer
of the municipality for whose benefit the agency or authority was
created of the] agency's [or authority's] noncompliance, the agency [or
authority] fails to file the required statement, the comptroller shall
notify the [chief executive officer of the municipality for whose bene-
fit that agency or authority was created and the] agency [or authority]
that if such report is not provided within sixty days, that the agency
[or authority] will no longer be authorized to provide exemptions from
state taxes.
(vi) If, sixty days after the notification required by subparagraph
(v) of this paragraph, the comptroller has not received the required
statement, the agency [or authority] shall not offer financial assist-
ance which provides exemptions from state taxes until such financial
statement is filed and the comptroller shall so notify the agency [or
authority and the chief executive officer of the municipality for whose
benefit the agency was created]. Provided, however, that nothing
contained in this paragraph shall be deemed to modify the terms of any
existing agreements.
2. On or before September first of each year, the commissioner of the
department of economic development shall prepare and submit to the
governor, speaker of the assembly, majority leader of the senate, and
the state comptroller, a report setting forth a summary of the signif-
icant trends in operations and financing by THE agencies [and authori-
ties]; departures from acceptable practices by agencies [and authori-
ties]; a compilation by type of the bonds and notes outstanding; a
compilation of all outstanding straight-lease transactions; an estimate
of the total number of jobs created and retained by agency [or authori-
ty] projects; and any other information which in the opinion of the
commissioner bears upon the discharge of the statutory functions of
agencies [and authorities].
3. On or before April first, nineteen hundred ninety-six, the commis-
sioner shall submit to the director of the division of the budget, the
temporary president of the senate, the speaker of the assembly, the
chairman of the senate finance committee, the chairman of the assembly
ways and means committee, the chairman of the senate local government
committee, the chairman of the senate committee on commerce, economic
development and small business, the chairman of the assembly committee
on commerce, industry and economic development, the chairman of the
assembly local governments committee and the chairman of the assembly
real property taxation committee an evaluation of the activities of
industrial development agencies [and authorities] in the state prepared
by an entity independent of the department. Such evaluation shall iden-
S. 4545 7
tify the effect of agencies [and authorities] on: (a) job creation and
retention in the state, including the types of jobs created and
retained; (b) the value of tax exemptions provided by such agencies [and
authorities]; (c) the value of payments received in lieu of taxes
received by municipalities and school districts as a result of projects
sponsored by such entities; (d) a summary of the types of projects that
received financial assistance; (e) a summary of the types of financial
assistance provided by the agencies [and authorities]; (f) a summary of
criteria for evaluation of projects used by agencies [and authorities];
(g) a summary of tax exemption policies of agencies [and authorities];
and (h) such other factors as may be relevant to an assessment of the
performance of such agencies [and authorities] in creating and retaining
job opportunities for residents of the state. Such evaluation shall also
assess the process by which THE agencies [and authorities] grant
exemptions from state taxes and make recommendations for the most effi-
cient and effective procedures for the use of such exemptions. Such
evaluation shall further include any recommendations for changes in laws
governing the operations of industrial development agencies [and author-
ities] which would enhance the creation and retention of jobs in the
state.
§ 5. Paragraph (c) of subdivision 2 of section 862 of the general
municipal law, as added by section 1 of part J of chapter 59 of the laws
of 2013, is amended to read as follows:
(c) With respect to projects authorized pursuant to paragraph (b) of
this subdivision, no project shall be approved unless the agency shall
find after the public hearing required by section eight hundred fifty-
nine-a of this title that undertaking the project will serve the public
purposes of this article by preserving permanent, private sector jobs or
increasing the overall number of permanent, private sector jobs in the
state. [Where the agency makes such a finding, prior to providing finan-
cial assistance to the project by the agency, the chief executive offi-
cer of the municipality for whose benefit the agency was created shall
confirm the proposed action of the agency.]
§ 6. Section 868 of the general municipal law, as added by chapter
1030 of the laws of 1969, is amended to read as follows:
§ 868. Agreements of the municipality and state. The municipality
WHERE A PROPOSED PROJECT IS LOCATED is authorized to, and the state does
hereby, pledge to and agree with the holders of the bonds or notes that
neither the municipality nor the state, respectively, will limit or
alter the rights, hereby vested in the agency to acquire, construct,
reconstruct, improve, maintain, equip and furnish the project or
projects, to establish and collect rentals, fees and other charges and
to fulfill the terms of any agreements made with the holders of the
bonds or notes nor in any way impair the rights and remedies of the
bondholders or noteholders until the bonds or notes, together with
interest thereon, with interest on any unpaid installments of interest
and all costs and expenses in connection with any action or proceeding
by or on behalf of the bondholders or noteholders are fully met and
discharged.
§ 7. Section 870 of the general municipal law, as added by chapter
1030 of the laws of 1969, is amended to read as follows:
§ 870. State and municipality not liable on bonds or notes. The bonds
or notes and other obligations of the [authority] AGENCY shall not be a
debt of the state or of the municipality WHERE A PROPOSED PROJECT IS
LOCATED, and neither the state nor the municipality shall be liable
S. 4545 8
thereon, nor shall they be payable out of any funds other than those of
the agency.
§ 8. Subdivision 1 and paragraph (d) of subdivision 3 of section 875
of the general municipal law, as added by section 2 of part J of chapter
59 of the laws of 2013, are amended to read as follows:
1. For purposes of this section: "state sales and use taxes" means
sales and compensating use taxes and fees imposed by article twenty-
eight or twenty-eight-A of the tax law but excluding such taxes imposed
in a city by section eleven hundred seven or eleven hundred eight of
such article twenty-eight. "IDA" means [an] A REGIONAL industrial devel-
opment agency established IN EACH REGION OF THE STATE by SUBDIVISION ONE
OF SECTION EIGHT HUNDRED FIFTY-SIX OF this [article or an industrial
development authority created by the public authorities law] TITLE.
"Commissioner" means the commissioner of taxation and finance.
(d) An IDA shall prepare an annual compliance report detailing its
terms and conditions described in paragraph (a) of this subdivision and
its activities and efforts to recover, recapture, receive, or otherwise
obtain state sales and use exemptions benefits described in paragraph
(b) of this subdivision, together with such other information as the
commissioner and the commissioner of economic development may require.
The report required by this subdivision shall be filed with the commis-
sioner, the director of the division of the budget, the commissioner of
economic development, the state comptroller, [the governing body of the
municipality for whose benefit the agency was created,] and may be
included with the annual financial statement required by paragraph (b)
of subdivision one of section eight hundred fifty-nine of this title.
Such report required by this subdivision shall be filed regardless of
whether the IDA is required to file such financial statement described
by such paragraph (b) of subdivision one of section eight hundred
fifty-nine. The failure to file or substantially complete the report
required by this subdivision shall be deemed to be the failure to file
or substantially complete the statement required by such paragraph (b)
of subdivision one of such section eight hundred fifty-nine, and the
consequences shall be the same as provided in paragraph (e) of subdivi-
sion one of such section eight hundred fifty-nine.
§ 9. Section 861 of the general municipal law is REPEALED.
§ 10. Section 882 of the general municipal law is REPEALED.
§ 11. Title 2 of article 18-A of the general municipal law is
REPEALED.
§ 12. This act shall take effect on the one hundred eightieth day
after it shall have become a law. Effective immediately, the addition,
amendment and/or repeal of any rule or regulation necessary for the
implementation of this act on its effective date are authorized to be
made and completed on or before such effective date.
