S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4896
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 14, 2025
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 AN  ACT to amend the economic development law, in relation to establish-
   ing the incentive evaluation act

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  economic  development law is amended by adding a new
 article 28 to read as follows:
                                ARTICLE 28
                          INCENTIVE EVALUATION ACT
 SECTION 500. SHORT TITLE.
         501. DEFINITIONS.
         502. INCENTIVE EVALUATION COMMISSION.
         503. PERIODIC EVALUATIONS.
         504. EVALUATION PROCESS.
   § 500. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
 THE "INCENTIVE EVALUATION ACT".
   § 501. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1.  "BUSINESS ENTITY" SHALL MEAN ANY PERSON, CORPORATION, PARTNERSHIP,
 SOLE PROPRIETOR, LIMITED PARTNERSHIP, ASSOCIATION OR ANY OTHER  BUSINESS
 ENTITY.
   2.  "COMMISSION" SHALL MEAN THE INCENTIVE EVALUATION COMMISSION ESTAB-
 LISHED UNDER THIS ARTICLE.
   3. "INCENTIVE" SHALL MEAN A TAX CREDIT, TAX EXEMPTION, TAX  DEDUCTION,
 TAX  EXPENDITURE,  REBATE,  GRANT, OR LOAN THAT IS INTENDED TO ENCOURAGE
 BUSINESSES TO LOCATE, EXPAND, INVEST, OR REMAIN IN NEW YORK, OR TO  HIRE
 OR RETAIN EMPLOYEES IN NEW YORK.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09441-02-5
 S. 4896                             2
 
              

   4.  "SUBSTANTIAL INTEREST" SHALL MEAN THE OWNERSHIP, DIRECTLY OR INDI-
 RECTLY, OF MORE THAN FIFTY PERCENT OF THE EQUITY  INTEREST  WITH  VOTING
 RIGHTS OF A BUSINESS ENTITY.
   § 502. INCENTIVE EVALUATION COMMISSION. 1. THERE IS HEREBY ESTABLISHED
 THE INCENTIVE EVALUATION COMMISSION CONSISTING OF:
   (A) A CERTIFIED PUBLIC ACCOUNTANT APPOINTED BY THE STATE COMPTROLLER;
   (B)  A  CHARTERED  FINANCIAL  ANALYST  APPOINTED BY THE SPEAKER OF THE
 ASSEMBLY;
   (C) AN AUDITOR WHO IS EMPLOYED AS AN INTERNAL AUDITOR BY A COMPANY  OR
 WHO  IS EMPLOYED BY A PRIVATE AUDITING FIRM APPOINTED BY THE STATE COMP-
 TROLLER;
   (D) AN ECONOMIST FROM A NEW YORK COLLEGE OR  UNIVERSITY  APPOINTED  BY
 THE TEMPORARY PRESIDENT OF THE SENATE;
   (E)  A  LAY  PERSON  WHO  IS  NOT AN ELECTED OFFICIAL APPOINTED BY THE
 GOVERNOR;
   (F) THE COMMISSIONER OF THE DEPARTMENT  OF  TAXATION  AND  FINANCE  OR
 THEIR  DESIGNEE  WHO  IS ALSO A MEMBER OF THE DEPARTMENT OF TAXATION AND
 FINANCE, WHICH SHALL BE AN EX OFFICIO AND NONVOTING POSITION;
   (G) THE DIRECTOR OF THE AUTHORITIES BUDGET OFFICE  OR  THEIR  DESIGNEE
 WHO IS AN EMPLOYEE OF THE AUTHORITIES BUDGET OFFICE WHICH SHALL BE AN EX
 OFFICIO AND NONVOTING POSITION; AND
   (H)  THE  COMMISSIONER  OR THEIR DESIGNEE WHO IS AN EMPLOYEE OF EMPIRE
 STATE DEVELOPMENT WHICH SHALL BE AN EX OFFICIO AND NONVOTING POSITION.
   2. INITIAL APPOINTMENTS TO THE  COMMISSION  OF  VOTING  MEMBERS  SHALL
 OCCUR  WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE AND SUCH
 MEMBERS SHALL HAVE THEIR TERM EXPIRE ON  THE  THIRTY-FIRST  OF  DECEMBER
 NEXT SUCCEEDING THE NINETIETH DAY AFTER THE EFFECTIVE DATE OF THIS ARTI-
 CLE. THEREAFTER, SUCH MEMBERS SHALL BE APPOINTED FOR TERMS OF FOUR YEARS
 BEGINNING  ON JANUARY FIRST. ANY VACANCY SHALL BE FILLED BY THE APPOINT-
 ING AUTHORITY FOR THE REMAINDER OF THE UNEXPIRED TERM.
   3. NO PERSON SHALL SERVE ON THE COMMISSION  OR  BE  APPOINTED  TO  THE
 COMMISSION WHO IS EMPLOYED BY A BUSINESS ENTITY THAT RECEIVES ANY INCEN-
 TIVE  OR  WHO  HOLDS  A  SUBSTANTIAL INTEREST IN OWNERSHIP IN A BUSINESS
 ENTITY THAT RECEIVES ANY INCENTIVE.
   4. NO PERSON SHALL BE APPOINTED TO THE COMMISSION WHO AT THE  TIME  OF
 THEIR APPOINTMENT IS AN ELECTED OFFICIAL. ANY PERSON WHO IS APPOINTED TO
 THE COMMISSION WHO SUBSEQUENTLY BECOMES AN ELECTED OFFICIAL DURING THEIR
 TERM ON THE COMMISSION SHALL BE REQUIRED TO VACATE THEIR POSITION ON THE
 COMMISSION.
   5.  THE OFFICE OF GENERAL SERVICES SHALL PROVIDE STAFF AND ADMINISTRA-
 TIVE SUPPORT TO THE COMMISSION. THE DEPARTMENT  AND  THE  DEPARTMENT  OF
 TAXATION  AND  FINANCE  SHALL  ASSIST  THE OFFICE OF GENERAL SERVICES AS
 NEEDED IN PROVIDING STAFF AND ADMINISTRATIVE SUPPORT TO THE COMMISSION.
   § 503. PERIODIC EVALUATIONS. 1. (A) ON OR BEFORE THE  THIRTY-FIRST  OF
 DECEMBER  NEXT  SUCCEEDING THE NINETIETH DAY AFTER THE EFFECTIVE DATE OF
 THIS ARTICLE AND EVERY  FOUR  YEARS  THEREAFTER,  THE  COMMISSION  SHALL
 DEVELOP  A FOUR-YEAR SCHEDULE FOR EVALUATING INCENTIVES. THE DEVELOPMENT
 OF THE SCHEDULE FOR EVALUATING THE INCENTIVES SHALL TAKE INTO  CONSIDER-
 ATION FISCAL IMPACTS TO REVENUES OF THIS STATE, INCLUDING BUT NOT LIMIT-
 ED TO THE GENERAL FUND, THE OPPORTUNITY TO GROUP INCENTIVES WITH SIMILAR
 GOALS  AND  OBJECTIVES  FOR EVALUATION, AND THE ABILITY TO OBTAIN SUFFI-
 CIENT DATA RELATED TO THE INCENTIVES FOR EVALUATION. EACH SCHEDULE SHALL
 INCLUDE A LIST OF ALL INCENTIVES IN THE STATE, INCLUDING ANY IT  EXEMPTS
 FROM  EVALUATION.  IN DETERMINING WHETHER A PROGRAM IS AN INCENTIVE, THE
 COMMISSION MAY CONSIDER LEGISLATIVE INTENT AND MAY ALSO CONSIDER WHETHER
 THE PROGRAM IS PROMOTED AS AN INCENTIVE BY ANY STATE  AGENCY.  FOR  EACH
 S. 4896                             3
 
 INCENTIVE  LISTED IN THE SCHEDULE, THE COMMISSION SHALL ATTEMPT TO IDEN-
 TIFY THE GOAL OR GOALS OF THE INCENTIVE.
   (B)  UPON  APPROVAL  OF THE SCHEDULE, THE COMMISSION SHALL PROVIDE THE
 SCHEDULE TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, AND SPEAKER
 OF THE ASSEMBLY.
   2. FOR THE FOUR CALENDAR YEARS FOLLOWING THE APPROVAL  OF  A  SCHEDULE
 UNDER  SUBDIVISION ONE OF THIS SECTION, THE COMMISSION SHALL ENSURE THAT
 EACH INCENTIVE IN SUCH SCHEDULE IS EVALUATED WITHIN THE FOUR-YEAR EVALU-
 ATION PERIOD UNLESS THE COMMISSION  DETERMINES  THAT  THE  INCENTIVE  IS
 EXEMPT  FROM  EVALUATION.  THE COMMISSION MAY EXEMPT FROM EVALUATION ANY
 INCENTIVE THAT IT CONCLUDES HAS A MINIMAL FISCAL IMPACT. THE  COMMISSION
 SHALL DETERMINE A SPECIFIC THRESHOLD AMOUNT WHICH SHALL BE CONSIDERED AS
 A MINIMAL FISCAL IMPACT FOR THE CURRENT EVALUATION CYCLE. THE COMMISSION
 MAY ALSO CONDUCT AN EXPEDITED EVALUATION FOR ANY INCENTIVE THAT HAS BEEN
 EVALUATED AT LEAST TWICE WITHIN THE PREVIOUS EIGHT YEARS AND HAS NOT HAD
 A  MATERIAL  CHANGE TO THE PROGRAM SINCE ITS PRIOR EVALUATION. THE EXPE-
 DITED EVALUATION  WILL  UPDATE  THE  PRIOR  EVALUATION'S  FINANCIAL  AND
 ECONOMIC IMPACTS, FINDINGS, AND RECOMMENDATIONS.
   §  504.  EVALUATION  PROCESS.  1.  THE  COMMISSION MAY CONTRACT WITH A
 PRIVATE COMPANY, NONPROFIT, OR  ACADEMIC  INSTITUTION  FOR  PROFESSIONAL
 SERVICES  TO  ASSIST  WITH  EVALUATION OF EACH INCENTIVE. THE COMMISSION
 SHALL DEVELOP REQUIREMENTS FOR SUCH PROFESSIONAL SERVICES  NECESSARY  TO
 COMPLETE  INCENTIVE  EVALUATIONS PURSUANT TO THIS ARTICLE. SUCH REQUIRE-
 MENTS SHALL INCLUDE, BUT NOT BE LIMITED TO, THE  CONTRACTOR  PROVIDE  AT
 LEAST  ONE  DRAFT REPORT FOR EACH INCENTIVE PRIOR TO THE ISSUANCE OF THE
 FINAL REPORT; PROVIDED, THE CONTRACTOR  MAY  DETERMINE  THE  TIMING  AND
 FREQUENCY  OF DRAFT REPORTS BASED ON THE AVAILABILITY OF INFORMATION AND
 THE POTENTIAL FOR DRAFT REPORTS TO ASSIST THE  COMMISSION  IN  MAKING  A
 FINAL  RECOMMENDATION.    THE COST OF SUCH CONTRACT SHALL BE PAID BY THE
 DEPARTMENT. NO RECIPIENT OR  POTENTIAL  RECIPIENT  OF  AN  INCENTIVE  OR
 REPRESENTATIVE  OF  A RECIPIENT OR POTENTIAL RECIPIENT SHALL CONTACT THE
 ENTITY OR INDIVIDUAL WITH WHOM THE COMMISSION CONTRACTS PURSUANT TO THIS
 SUBDIVISION UNLESS THE ENTITY OR INDIVIDUAL SPECIFICALLY REQUESTS INFOR-
 MATION OR DOCUMENTATION FOR PURPOSES OF THE INCENTIVE  EVALUATION  PROC-
 ESS; PROVIDED, THIS SHALL NOT BE CONSTRUED TO PREVENT PARTICIPATION IN A
 PUBLIC HEARING CONDUCTED PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
   2.  FOR EACH YEAR IN WHICH INCENTIVES HAVE BEEN SCHEDULED TO BE EVALU-
 ATED UNDER THIS ARTICLE:
   (A) BY OCTOBER FIRST OF EACH SUCH YEAR, THE COMMISSION OR THE  COMMIS-
 SION'S  CHOSEN  CONTRACTOR SHALL HAVE EVALUATED EACH INCENTIVE SCHEDULED
 FOR REVIEW THAT YEAR. THE COMMISSION OR THE COMMISSION'S CHOSEN CONTRAC-
 TOR SHALL CONDUCT EACH INCENTIVE EVALUATION  IN  CONSULTATION  WITH  THE
 DEPARTMENT USING CRITERIA DEVELOPED PURSUANT TO SUBDIVISION FOUR OF THIS
 SECTION.
   (B)  BETWEEN  OCTOBER  FIRST AND NOVEMBER THIRTIETH OF EACH SUCH YEAR,
 THE COMMISSION SHALL HOLD AT LEAST ONE PUBLIC MEETING TO  REVIEW,  ALLOW
 FOR  PUBLIC  COMMENT,  AND  VOTE  TO APPROVE, DISAPPROVE, OR MODIFY EACH
 INCENTIVE EVALUATION CONDUCTED THAT YEAR.
   (C) BY DECEMBER FIFTEENTH OF EACH  SUCH  YEAR,  THE  COMMISSION  SHALL
 ISSUE  AN  ANNUAL WRITTEN REPORT WHICH SHALL PROVIDE: (I) THE RESULTS OF
 EACH INCENTIVE EVALUATION; (II) A REVIEW OF PRIOR  INCENTIVE  EVALUATION
 RECOMMENDATIONS  BY  THE  COMMISSION AND CHANGES TO STATUTE OR INCENTIVE
 ADMINISTRATION RELATED TO SUCH RECOMMENDATIONS; AND (III) IF THE COMMIS-
 SION VOTES TO MODIFY AN INCENTIVE EVALUATION AS PROVIDED IN THIS  SUBDI-
 VISION,  SUCH  MODIFICATION  AND  THE ORIGINAL EVALUATION SHALL BE DOCU-
 MENTED. THE REPORT SHALL BE MADE PUBLICLY AVAILABLE ON THE  DEPARTMENT'S
 S. 4896                             4
 
 WEBSITE  AND  THE  COMMISSION'S  WEBSITE  AND  SHALL BE SUBMITTED TO THE
 GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE,  AND  THE  SPEAKER  OF  THE
 ASSEMBLY.
   3. EACH EVALUATION SHALL INCLUDE THE FOLLOWING:
   (A)  AN  ESTIMATE  OF THE ECONOMIC AND FISCAL IMPACT OF THE INCENTIVE.
 THIS ESTIMATE SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (I) THE EXTENT TO WHICH THE INCENTIVE CHANGES BUSINESS BEHAVIOR.
   (II) THE RESULTS OF THE INCENTIVE FOR THE ECONOMY OF  NEW  YORK  AS  A
 WHOLE.    THIS  CONSIDERATION INCLUDES BOTH POSITIVE DIRECT AND INDIRECT
 IMPACTS AND ANY NEGATIVE EFFECTS ON OTHER NEW YORK BUSINESSES.
   (III) A COMPARISON TO THE RESULTS OF OTHER INCENTIVES OR OTHER ECONOM-
 IC DEVELOPMENT STRATEGIES WITH SIMILAR GOALS.
   (B) AN ASSESSMENT OF WHETHER ADEQUATE  PROTECTIONS  ARE  IN  PLACE  TO
 ENSURE THE FISCAL IMPACT OF THE INCENTIVE DOES NOT INCREASE SUBSTANTIAL-
 LY BEYOND THE STATE'S EXPECTATIONS IN FUTURE YEARS.
   (C)  AN  ASSESSMENT  OF  WHETHER  THE  INCENTIVE IS BEING ADMINISTERED
 EFFECTIVELY.
   (D) AN ASSESSMENT OF WHETHER THE INCENTIVE IS ACHIEVING ITS GOALS.
   (E) RECOMMENDATIONS FOR HOW THE STATE CAN MOST EFFECTIVELY ACHIEVE THE
 INCENTIVE'S GOALS, INCLUDING RECOMMENDATIONS ON  WHETHER  THE  INCENTIVE
 SHOULD BE RETAINED, RECONFIGURED, OR REPEALED.
   (F)  RECOMMENDATIONS  FOR ANY CHANGES TO STATE POLICY, RULES, OR STAT-
 UTES THAT WOULD ALLOW THE INCENTIVE TO BE MORE  EASILY  OR  CONCLUSIVELY
 EVALUATED  IN  THE  FUTURE. THESE RECOMMENDATIONS MAY INCLUDE CHANGES TO
 COLLECTION, REPORTING, AND SHARING OF DATA, AND REVISIONS OR  CLARIFICA-
 TIONS TO THE GOAL OF THE INCENTIVE.
   4. EVALUATION CRITERIA SHALL BE DEVELOPED FOR EACH INCENTIVE EVALUATED
 BY  THE  COMMISSION.  EACH  INCENTIVE  SHALL BE EVALUATED USING CRITERIA
 SPECIFIC TO THE INDIVIDUAL INCENTIVE.
   5. THE COMMISSION AND ANY OF ITS  CONTRACTORS,  UNLESS  PROHIBITED  BY
 STATE  OR  FEDERAL LAW, MAY REQUEST AND SHALL RECEIVE IN A TIMELY MANNER
 FROM ANY DEPARTMENT, DIVISION,  BOARD,  BUREAU,  COMMISSION,  AGENCY  OR
 OTHER  POLITICAL  SUBDIVISION OF THE STATE, SUCH INFORMATION AND ASSIST-
 ANCE AS SHALL ENABLE IT TO PROPERLY CARRY  OUT  ITS  POWERS  AND  DUTIES
 PURSUANT TO THIS ARTICLE.
   § 2. This act shall take effect immediately.