S T A T E   O F   N E W   Y O R K
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                                   5543
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 24, 2025
                                ___________
 
 Introduced  by  Sen.  MAYER  -- 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  industrial
   development agencies
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 859-a of the general municipal  law,  as  added  by
 chapter 356 of the laws of 1993, subdivision 1-a as amended and subdivi-
 sion 7 as added by chapter 32 of the laws of 2023, subdivisions 4, 5 and
 6  as  added  by  chapter  563  of the laws of 2015 and paragraph (b) of
 subdivision 5 as amended by section 7 of part X of  chapter  59  of  the
 laws of 2021, is amended to read as follows:
   §  859-a.  Additional  prerequisites  to  the  provisions of financial
 assistance OR PAYMENTS IN LIEU OF TAXES. Prior to providing  any  finan-
 cial  assistance  OR  PAYMENTS IN LIEU OF TAXES of more than one hundred
 thousand dollars to any project, the agency must comply with the follow-
 ing prerequisites:
   1. The agency must adopt a resolution describing the project  and  the
 financial  assistance  OR  PAYMENTS  IN LIEU OF TAXES that the agency is
 contemplating with respect to such project. Such assistance OR  PAYMENTS
 IN  LIEU  OF  TAXES  shall  be consistent with the uniform tax exemption
 policy adopted by the agency pursuant to  subdivision  four  of  section
 eight  hundred  seventy-four  of this [chapter] TITLE, unless the agency
 has followed the procedures for deviation from such policy specified  in
 paragraph (b) of such subdivision.
   1-a.  The agency shall deliver a copy of the resolution adopted pursu-
 ant to subdivision one of this section by certified mail, return receipt
 requested or an electronic correspondence with a  read-receipt,  to  the
 chief executive officer of each affected local taxing jurisdiction. When
 the  affected local taxing jurisdiction is a school district, the agency
 shall deliver a copy  of  such  resolution  by  certified  mail,  return
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08491-01-5
              

 S. 5543                             2
 
 receipt  requested  or an electronic correspondence with a read-receipt,
 to the district clerk  and  district  superintendent  of  each  affected
 school district.
   2.  The  agency must hold a public hearing with respect to the project
 and the proposed financial assistance OR PAYMENTS IN LIEU OF TAXES being
 contemplated by the agency. Said public hearing shall be held in a city,
 town or village where the project proposes to  locate.  At  said  public
 hearing,  interested  parties  shall be provided reasonable opportunity,
 both orally and in writing, to present their views with respect  to  the
 project.
   3.  The  agency  must  give at least ten days published notice of said
 public hearing and shall, at the same time, provide notice of such hear-
 ing to the chief executive officer of  each  affected  tax  jurisdiction
 within  which  the  project  is located, EACH SCHOOL BOARD PRESIDENT AND
 SUPERINTENDENT OF EACH SCHOOL  DISTRICT  WITHIN  WHICH  THE  PROJECT  IS
 LOCATED, AND TO ALL STATE SENATORS AND MEMBERS OF THE STATE ASSEMBLY WHO
 REPRESENT  ANY  PORTION OF ANY AFFECTED TAX JURISDICTION THAT IS SUBJECT
 TO THE PROPOSED FINANCIAL ASSISTANCE OR PAYMENTS IN LIEU OF  TAXES.  The
 notice  of hearing must state the time and place of the hearing, contain
 a general, functional description of the project, describe the  prospec-
 tive  location  of  the project, identify the initial owner, operator or
 manager of the project and generally describe the  financial  assistance
 OR  PAYMENTS IN LIEU OF TAXES contemplated by the agency with respect to
 the project.
   4. Each agency shall develop a standard application form, which  shall
 be  used  by  the  agency to accept requests for financial assistance OR
 PAYMENTS IN LIEU OF TAXES from all individuals, firms, companies, devel-
 opers or other entities or organizations. The standard application  form
 shall  be submitted by or on behalf of the applicant, and subscribed and
 affirmed under the penalties of perjury by the applicant, or  on  behalf
 of the applicant by the chief executive officer or such other individual
 that  is  duly  authorized  to bind the applicant, as true, accurate and
 complete to the best of [his  or  her]  THEIR  knowledge.  The  standard
 application form shall include the following, and may include such other
 supplemental  information  as determined to be necessary and appropriate
 by the agency, including supporting documents and  information  provided
 by or on behalf of the applicant:
   (a) the name and address of the project applicant;
   (b)  a description of the proposed project for which financial assist-
 ance OR PAYMENTS IN LIEU OF TAXES is requested, including  the  type  of
 project, proposed location and purpose of the project;
   (c) the amount and type of financial assistance OR PAYMENTS IN LIEU OF
 TAXES being requested, including the estimated value of each type of tax
 exemption  sought  to  be claimed by reason of agency involvement in the
 project;
   (d) a statement that there is a likelihood that the project would  not
 be  undertaken  but  for the financial assistance OR PAYMENTS IN LIEU OF
 TAXES provided by the agency or, if  the  project  could  be  undertaken
 without  financial  assistance  OR PAYMENTS IN LIEU OF TAXES provided by
 the agency, a statement indicating why the project should be  undertaken
 by the agency;
   (e)  an  estimate of capital costs of the project, including all costs
 of real property and equipment acquisition and building construction  or
 reconstruction, financed from private sector sources, an estimate of the
 percentage  of project costs financed from public sector sources, and an
 S. 5543                             3
 
 estimate of both the amount to be invested  by  the  applicant  and  the
 amount to be borrowed to finance the project[.];
   (f)  the  projected  number of full time equivalent jobs that would be
 retained and that would be created if the request for financial  assist-
 ance  OR  PAYMENTS  IN LIEU OF TAXES is granted, the projected timeframe
 for the creation of new jobs, the estimated salary  and  fringe  benefit
 averages  or ranges for categories of the jobs that would be retained or
 created if the request for financial assistance OR PAYMENTS IN  LIEU  OF
 TAXES  is  granted,  and  an  estimate of the number of residents of the
 economic development region  as  established  pursuant  to  section  two
 hundred  thirty of the economic development law or the labor market area
 as defined by the agency, in which the project  is  located  that  would
 fill  such  jobs.  The  labor market area defined by the agency for this
 purpose may include no more than six contiguous counties in  the  state,
 including the county in which the project is to be located;
   (g)  a  statement to the effect that the provisions of subdivision one
 of section eight hundred sixty-two of this [chapter] TITLE will  not  be
 violated  if  financial  assistance  OR  PAYMENTS  IN  LIEU  OF TAXES is
 provided for the proposed project;
   (h) a statement that the owner, occupant or operator receiving  finan-
 cial  assistance  OR PAYMENTS IN LIEU OF TAXES is in substantial compli-
 ance 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 OR PAYMENTS IN LIEU OF TAXES and
 the reimbursement of  an  amount  equal  to  all  or  part  of  any  tax
 exemptions claimed by reason of agency involvement in the project.
   5.  Each agency shall develop, and adopt by resolution, uniform crite-
 ria for the evaluation and selection for each category of  projects  for
 which  financial  assistance  OR  PAYMENTS  IN  LIEU  OF  TAXES  will be
 provided. At a minimum,  the  criteria  shall  require  that,  for  each
 project, the following must occur prior to the approval of the provision
 of financial assistance OR PAYMENTS IN LIEU OF TAXES:
   (a)  an  assessment by the agency of all material information included
 in connection with the application for financial assistance OR  PAYMENTS
 IN  LIEU  OF  TAXES,  as  necessary to afford a reasonable basis for the
 decision by the agency to provide financial assistance  OR  PAYMENTS  IN
 LIEU OF TAXES for the project;
   (b)  a written cost-benefit analysis by the agency that identifies the
 extent to which a project  will  create  or  retain  permanent,  private
 sector  jobs;  the estimated value of any tax exemptions to be provided;
 the amount of private sector investment generated or likely to be gener-
 ated by the proposed project; the contribution of  the  project  to  the
 state's  renewable  energy  goals  and emission reduction targets as set
 forth in the state energy plan adopted pursuant to section 6-104 of  the
 energy  law;  the  likelihood of accomplishing the proposed project in a
 timely fashion; and the  extent  to  which  the  proposed  project  will
 provide  additional  sources  of  revenue  for municipalities and school
 districts; and any other public benefits that might occur as a result of
 the project;
   (c) a statement by the applicant that the project, as of the  date  of
 the  application,  is  in  substantial compliance with all provisions of
 this article including, but not  limited  to,  the  provisions  of  this
 section  and  subdivision one of section eight hundred sixty-two of this
 [chapter] TITLE; and
 S. 5543                             4
 
   (d) if the project involves the removal or abandonment of  a  facility
 or plant within the state, notification by the agency to the chief exec-
 utive officer or officers of the municipality or municipalities in which
 the facility or plant was located.
   6.  Each  agency shall develop a uniform agency project agreement that
 sets forth terms and conditions  under  which  financial  assistance  OR
 PAYMENTS  IN LIEU OF TAXES shall be provided. The uniform agency project
 agreement shall be used by the agency and  no  financial  assistance  OR
 PAYMENTS  IN  LIEU  OF  TAXES  shall  be  provided in the absence of the
 execution of such an agreement. The  uniform  agency  project  agreement
 shall, at a minimum:
   (a)  describe  the project and the financial assistance OR PAYMENTS IN
 LIEU OF TAXES, including the amount and type, to be  provided,  and  the
 agency purpose to be achieved;
   (b)  require each project owner, occupant or operator receiving finan-
 cial benefits OR PAYMENTS IN LIEU OF TAXES to provide annually a  certi-
 fied  statement and documentation:  (i) enumerating the full time equiv-
 alent jobs retained and the full  time  equivalent  jobs  created  as  a
 result  of  the  financial  assistance  OR PAYMENTS IN LIEU OF TAXES, by
 category, including full  time  equivalent  independent  contractors  or
 employees  of independent contractors that work at the project location,
 and (ii) indicating that the salary and fringe benefit averages or rang-
 es for categories of jobs retained and jobs created that was provided in
 the application is still accurate and  if  it  is  not  still  accurate,
 providing a revised list of salary and fringe benefit averages or ranges
 for categories of jobs retained and jobs created[.];
   (c)  indicate  the dates when [PILOT] payments IN LIEU OF TAXES are to
 be made and provide an estimate of the amounts  for  each  affected  tax
 jurisdiction  of any payments in lieu of taxes that are included as part
 of the transaction, or formula or formulas by which those amounts may be
 calculated. In lieu of providing such information, a copy of an executed
 payment in lieu of tax agreement that contains the same information  may
 be attached to the uniform agency project agreement;
   [(e)]  (D)  provide  for the suspension or discontinuance of financial
 assistance OR PAYMENTS IN LIEU OF TAXES, or for the modification of  any
 payment  in  lieu  of  tax  agreement  to require increased payments, in
 accordance with policies developed by the  agency  pursuant  to  section
 eight hundred seventy-four of this title;
   [(f)]  (E)  provide  for  the return of all or a part of the financial
 assistance OR PAYMENTS IN  LIEU  OF  TAXES  provided  for  the  project,
 including  all  or part of the amount of any tax exemptions, which shall
 be redistributed  to  the  appropriate  affected  tax  jurisdiction,  as
 provided  for  in  policies  developed by the agency pursuant to section
 eight hundred seventy-four of this title, unless agreed to otherwise  by
 any local taxing jurisdiction or jurisdictions; and
   [(g)]  (F)  provide  that  the  owner,  occupant or operator receiving
 financial assistance OR PAYMENTS IN LIEU OF TAXES shall  certify,  under
 penalty of perjury, that it is in substantial compliance with all local,
 state  and  federal tax, worker protection and environmental laws, rules
 and regulations.
   7. Each agency shall establish a procedure  for  compliance  with  the
 notification  requirements, including identification of the notification
 method, under subdivision one-a of this section  and  paragraph  (b)  of
 subdivision four of section eight hundred seventy-four of this title.
   §  2.  The  general  municipal  law is amended by adding a new section
 859-c to read as follows:
 S. 5543                             5
 
   § 859-C. NOTICE OF AGENDA. EACH AGENCY SHALL MAKE A  PRINTED  CALENDAR
 OF ITEMS TO BE HEARD, WHICH MAY BE SUBJECT TO LATER AMENDMENT, AVAILABLE
 TO  THE  PUBLIC  AND FORWARDED TO THE MEMBERS AND CHAIR OF THE AGENCY AT
 LEAST THREE DAYS IN ADVANCE OF THE MEETING. WHERE AN AGENCY MAINTAINS  A
 WEBSITE,  THE  NOTICE  OF  AGENDA  SHALL ALSO BE POSTED ON SUCH AGENCY'S
 WEBSITE.
   § 3. The general municipal law is amended  by  adding  a  new  section
 859-d to read as follows:
   § 859-D. SCHOOL BOARD REPORTING. EVERY AGENCY, CONTINUED OR CREATED BY
 THIS  CHAPTER  OR  ANY  OTHER LAW OF THE STATE SHALL SUBMIT TO THE LOCAL
 SCHOOL BOARD PRESIDENT  AND  SUPERINTENDENT  OR  BOARDS  PRESIDENTS  AND
 SUPERINTENDENTS OVERLAPPING WITH AN INDUSTRIAL DEVELOPMENT AGENCY, WITH-
 IN  NINETY  DAYS  AFTER  THE END OF ITS FISCAL YEAR, A COPY OF THE FINAL
 REPORT REQUIRED BY SUBDIVISION TWO OF SECTION  TWENTY-EIGHT  HUNDRED  OF
 THE PUBLIC AUTHORITIES LAW AND THE AUDITS REQUIRED BY SUBDIVISION TWO OF
 SECTION TWENTY-EIGHT HUNDRED TWO OF THE PUBLIC AUTHORITIES LAW.
   § 4. This act shall take effect immediately.