NY State Senate Bill 2025-S4658A

Senate Bill S4658A

2025-2026 Legislative Session

Relates to prohibiting the use of funds, financial incentives or subsidies where facilities or property are used primarily for e-commerce storage and transfers, or the facilitation thereof

download bill text pdf

Current 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
Mar 31, 2025	print number 4658a
Mar 31, 2025	amend (t) and recommit to local government
Feb 10, 2025	referred to local government

Bill Amendments

Original

A (Active)

2025-S4658 - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §862, Gen Muni L; amd §§1953 & 2306, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8418
2023-2024: S127

2025-S4658 - Summary

Relates to prohibiting the use of funds, financial incentives or subsidies where facilities or property are used primarily for e-commerce storage and transfers, or the facilitation thereof.

2025-S4658 - Sponsor Memo

                                 
BILL NUMBER: S4658

SPONSOR: RYAN S
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to prohibiting
the use of funds, financial incentives or subsidies where facilities or
property are used primarily for e-commerce storage and transfers, or the
facilitation thereof

 
PURPOSE:

The purpose of this bill is to prevent industrial development agencies
from providing subsidies to large multi-national corporations to build
storage and warehouse facilities.

 
SUMMARY OF PROVISIONS:

Section 1: Amends section 862 of the general municipal law to include a
new subdivision, subdivision 3, which would prohibit industrial develop-
ment agencies from giving funds, financial incentives, and subsidies to
any project where facilities or property are used primarily for e-com-

merce storage and transfers.

Section 2: Effective date.

 
EXISTING LAW:

None.

 
JUSTIFICATION:

Industrial development agencies, or IDAs, exist primarily to incentivize
economic development by attracting businesses and creating jobs. The
incentives offered by IDAs often include the waiving state and local
taxes, which results in significant loss over the term of the incentive,
and in return often only provides a few minimum wage or low wage jobs.

Additionally, many incentives have recently been given to large multina-
tional corporations at the expense of New York Taxpayers. New York IDA
subsidies given to Amazon have diverted a quarter billion dollars in
just the past two years. This was not the legislative intent when IDAs
were established in 1969 to improve economic conditions and facilitate
economic development in localities.

This bill would prohibit IDAs from offering incentives for e-commerce
storage and transfer facilities often given to large, multi-billion-dol-
lar corporations with dubious economic growth projections at the expense
of local municipalities and their residents.

 
LEGISLATIVE HISTORY:

2022: S8418/A9636

2024: S127/A1048

 
FISCAL IMPLICATIONS:

None to the State.
 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S4658 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4658
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2025
                                ___________
 
 Introduced  by  Sen. S. RYAN -- 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  prohibiting
   the  use  of funds, financial incentives or subsidies where facilities
   or property are used primarily for e-commerce storage  and  transfers,
   or the facilitation thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 862 of the general  municipal  law  is  amended  by
 adding a new subdivision 3 to read as follows:
   (3) NO FUNDS, FINANCIAL INCENTIVES OR SUBSIDIES OF THE AGENCY SHALL BE
 USED  IN  RESPECT  OF  ANY PROJECT WHERE FACILITIES OR PROPERTY ARE USED
 PRIMARILY FOR ELECTRONIC COMMERCE (E-COMMERCE) STORAGE AND TRANSFERS, OR
 THE FACILITATION THEREOF.
   § 2. This act shall take effect immediately.
 
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00421-01-5

2025-S4658A (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §862, Gen Muni L; amd §§1953 & 2306, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8418
2023-2024: S127

2025-S4658A (ACTIVE) - Summary

Relates to prohibiting the use of funds, financial incentives or subsidies where facilities or property are used primarily for e-commerce storage and transfers, or the facilitation thereof.

2025-S4658A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4658A

SPONSOR: RYAN S
 
TITLE OF BILL:

An act to amend the general municipal law and the public authorities
law, in relation to prohibiting the use of funds, financial incentives
or subsidies where facilities or property are used primarily for e-com-
merce storage and transfers, or the facilitation thereof

 
PURPOSE:

The purpose of this bill is to prevent industrial development agencies
from providing subsidies to large multi-national corporations to build
storage and warehouse facilities.

 
SUMMARY OF PROVISIONS:

Section 1: Amends section 862 of the general municipal law to include a
new subdivision, subdivision 3, which would prohibit industrial develop-
ment agencies from giving funds, financial incentives, and subsidies to
any project where facilities or property are used primarily for e-com-

merce storage and transfers.

Section 2: Amends the second undesignated paragraph of section 1953 of
the public authorities law to be consistent with section 862 of the
general municipal law.

Section 3: Amends the second undesignated paragraph of section 2306 of
the public authorities law to be consistent with section 862 of the
general municipal law.

Section 4: Effective date.

 
EXISTING LAW:

None.

 
JUSTIFICATION:

Industrial development agencies, or IDAs, exist primarily to incentivize
economic development by attracting businesses and creating jobs. The
incentives offered by IDAs often include the waiving state and local
taxes, which results in significant loss over the term of the incentive,
and in return often only provides a few minimum wage or low wage jobs.

Additionally, many incentives have recently been given to large multina-
tional corporations at the expense of New York Taxpayers. New York IDA
subsidies given to Amazon have diverted a quarter billion dollars in
just the past two years. This was not the legislative intent when IDAs
were established in 1969 to improve economic conditions and facilitate
economic development in localities.

This bill would prohibit IDAs from offering incentives for e-commerce
storage and transfer facilities often given to large, multi-billion-dol-
lar corporations with dubious economic growth projections at the expense
of local municipalities and their residents.

 
LEGISLATIVE HISTORY:
2022: S8418/A9636 2024: S127/A1048

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S4658A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4658--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2025
                                ___________
 
 Introduced  by  Sen. S. RYAN -- read twice and ordered printed, and when
   printed to be committed  to  the  Committee  on  Local  Government  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the general municipal law  and  the  public  authorities
   law, in relation to prohibiting the use of funds, financial incentives
   or  subsidies  where  facilities  or  property  are used primarily for
   e-commerce storage and transfers, or the facilitation thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  862  of  the general municipal law is amended by
 adding a new subdivision 3 to read as follows:
   (3) NO FUNDS, FINANCIAL INCENTIVES OR SUBSIDIES OF THE AGENCY SHALL BE
 USED IN RESPECT OF ANY PROJECT WHERE FACILITIES  OR  PROPERTY  ARE  USED
 PRIMARILY FOR ELECTRONIC COMMERCE (E-COMMERCE) STORAGE AND TRANSFERS, OR
 THE FACILITATION THEREOF.
   §  2.  The second undesignated paragraph of section 1953 of the public
 authorities law, as amended by chapter 579  of  the  laws  of  2021,  is
 amended to read as follows:
   Notwithstanding  the  provisions of this section to the contrary, such
 financial assistance may, however, be provided to a project where facil-
 ities or property that are primarily used  in  making  retail  sales  of
 goods  or  services to customers who personally visit such facilities to
 obtain such goods or services constitute  more  than  one-third  of  the
 total  project  cost,  where: (i) the predominant purpose of the project
 would be to make available goods or services which would  not,  but  for
 the  project,  be  reasonably accessible to the residents of the city of
 Troy because of a lack of reasonably accessible retail trade  facilities
 offering  such  goods  or  services; or (ii) the project is located in a
 highly distressed area. With respect to projects authorized pursuant  to
 this  paragraph  no project shall be approved unless the authority shall
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00421-02-5

 S. 4658--A                          2
 
 find after the public hearing required by section  twenty-three  hundred
 seven of this chapter 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 authority makes such  a  finding,  prior  to  providing
 financial  assistance  to the project by the authority, the chief execu-
 tive officer of the city of Troy shall confirm the  proposed  action  of
 the  authority.  NO  FUNDS,  FINANCIAL  INCENTIVES  OR  SUBSIDIES OF THE
 AUTHORITY SHALL BE USED IN RESPECT OF ANY PROJECT  WHERE  FACILITIES  OR
 PROPERTY ARE USED PRIMARILY FOR ELECTRONIC COMMERCE (E-COMMERCE) STORAGE
 AND  TRANSFERS, OR THE FACILITATION THEREOF. To carry out said purposes,
 the authority shall have power:
   § 3. The second undesignated paragraph of section 2306 of  the  public
 authorities  law,  as  amended  by  chapter  304 of the laws of 2013, is
 amended to read as follows:
   Notwithstanding the provisions of this section to the  contrary,  such
 financial assistance may, however, be provided to a project where facil-
 ities  or  property  that  are  primarily used in making retail sales of
 goods or services to customers who personally visit such  facilities  to
 obtain  such  goods  or  services  constitute more than one-third of the
 total project cost, where: (i) the predominant purpose  of  the  project
 would  be  to  make available goods or services which would not, but for
 the project, be reasonably accessible to the residents of  the  city  of
 Auburn  because  of a lack of reasonably accessible retail trade facili-
 ties offering such goods or services; or (ii) the project is located  in
 a  highly  distressed area. With respect to projects authorized pursuant
 to this paragraph no project shall  be  approved  unless  the  authority
 shall  find  after  the  public hearing required by section twenty-three
 hundred seven 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 authority makes such a finding, prior to provid-
 ing  financial  assistance  to  the  project by the authority, the chief
 executive officer of the city  of  Auburn  shall  confirm  the  proposed
 action  of the authority. NO FUNDS, FINANCIAL INCENTIVES OR SUBSIDIES OF
 THE AUTHORITY SHALL BE USED IN RESPECT OF ANY PROJECT  WHERE  FACILITIES
 OR  PROPERTY  ARE  USED  PRIMARILY  FOR ELECTRONIC COMMERCE (E-COMMERCE)
 STORAGE AND TRANSFERS, OR THE FACILITATION THEREOF. To  carry  out  said
 purpose, the authority shall have power:
   § 4. This act shall take effect immediately.

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