S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    30
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI,  JACOBSON, STECK, OTIS, JACKSON,
   SIMON, McMAHON, HUNTER -- 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 AS DEFINED BY THE AGENCY'S  POLICY.
 IF  THE  AGENCY DEVIATES FROM ITS POLICY ON ANY PROJECT, THE AGENCY MUST
 DRAFT A RESOLUTION, NOTE THE DEVIATION IN  THE  PROJECT'S  PAGE  IN  THE
 PUBLIC  AUTHORITIES  REPORTING  INFORMATION  SYSTEM  (PARIS) REPORT, AND
 RETAIN RECORD OF SUCH DETERMINATION INCLUDING A DETAILED EXPLANATION  IN
 AGENCY FILES. THE AGENCY SHALL ALSO POST SUCH RESOLUTION AND EXPLANATION
 ON  THEIR  WEBSITE. All such returned amounts of tax exemptions shall be
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00326-01-5
 A. 30                               2
 
 redistributed to  the  appropriate  affected  tax  jurisdiction,  unless
 agreed to otherwise by any local taxing jurisdiction.
   (13)  EXCEPT  WHERE A SIGNIFICANT INCREASE IN PROJECT COSTS IS DISCOV-
 ERED DURING THE DEVELOPMENT OF THE PROJECT OR WHERE A  MUNICIPALITY  HAS
 REASSESSED  ALL  OR  PART OF THE PROJECT SITE RESULTING IN A SIGNIFICANT
 INCREASE IN PROPERTY TAXES, 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 22 to read as follows:
   (22)  "IN  DEVELOPMENT"  -  SHALL  MEAN  A  PROJECT  FOR  WHICH ACTIVE
 CONSTRUCTION, AND ERECTION OF  BUILDING  FOUNDATIONS  OR  STRUCTURE  HAS
 ALREADY COMMENCED AND ALL REQUIRED PERMITS HAVE BEEN ISSUED.
   §  3.  Section 862 of the general municipal law is amended by adding a
 new subdivision 3 to read as follows:
   (3) EXCEPT WHERE A SIGNIFICANT INCREASE IN PROJECT COSTS IS DISCOVERED
 DURING THE DEVELOPMENT OF THE PROJECT OR WHERE A MUNICIPALITY HAS  REAS-
 SESSED  ALL  OR  PART  OF  THE  PROJECT  SITE RESULTING IN A SIGNIFICANT
 INCREASE IN PROPERTY TAXES, 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,  FINAN-
 CIAL ASSISTANCE, INCENTIVES OR SUBSIDIES.
   § 4. This act shall take effect immediately.