§ 859. Financial records. 1. (a) Each agency shall maintain books and
records in such form as may be prescribed by the state comptroller.

(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 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 supplemental
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
schedules shall provide the name of each project financed with proceeds
of each issue, 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 bond or note was issued, date of issue, interest
rate at issuance and if variable the range of interest rates applicable,
maturity 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 transaction 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.

(c) Within thirty days after completion, a copy of the audited
financial statement shall be transmitted to the commissioner of the
department of economic development, the state comptroller and the
governing body of the municipality for whose benefit the agency was
created.

(d) An agency with no bonds or notes issued or outstanding and no
projects during the applicable accounting period may apply to the state
comptroller for a waiver of the required audited financial statement.
Application shall be made on such form as the comptroller may prescribe.

(e) If an agency or authority shall fail to file or substantially
complete, as determined by the state comptroller, the financial
statement required by this section, the state comptroller shall provide
notice to the agency or authority. The notice shall state the following:

(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 comptroller 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 agency's
noncompliance with this section. Where such agency or authority has
failed to file the required statement, the comptroller shall
additionally notify the agency or authority that continued failure to
file the required statement may result in loss of the agency's or
authority'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
explanation, 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 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 agency'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 benefit
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 assistance
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.

(f) Within thirty days after completion, a copy of an audited
financial statement which contains transactions of or bonds or notes of
civic facilities as defined in paragraph (b) of subdivision thirteen of
section eight hundred fifty-four of this article, shall be transmitted
by the agency to the commissioner of health, the chair of the senate
finance committee, the chair of the assembly ways and means committee,
the chair of the senate health committee and the chair of the assembly
health committee.

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
significant trends in operations and financing by agencies and
authorities; departures from acceptable practices by agencies and
authorities; 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 authority
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
commissioner 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 identify
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 agencies and authorities grant exemptions
from state taxes and make recommendations for the most efficient 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 authorities which
would enhance the creation and retention of jobs in the state.