§ 960. Designation of empire zones. (a) The empire zones designation
board is hereby created. Such board shall consist of the commissioner of
taxation and finance, the director of the budget, the commissioner of
labor and two members to be appointed by the governor; one member to be
appointed by the temporary president of the senate; one member to be
appointed by the speaker of the assembly; and two non-voting members,
one of whom shall be appointed by the minority leader of the senate and
one of whom shall be appointed by the minority leader of the assembly.
The governor shall designate from among the voting members the chairman
of the board. Each member of the board shall be entitled to designate a
representative to attend meetings of the board in his or her place, and
to vote or otherwise act on his or her behalf in his or her absence.
Notice of such designation shall be furnished in writing to the board by
the designating member. A representative shall serve at the pleasure of
the designating member. A representative shall not be authorized to
delegate any of his or her duties or functions to any other person.

(a-1) The empire zones designation board may consider designating
empire zone acreage for the following categories of regionally
significant projects as set forth in section nine hundred fifty-seven of
this article: agri-business or high tech or biotech business making a
capital investment of ten million dollars and creating twenty or more
jobs; or a financial or insurance services or distribution center
creating three hundred or more jobs; or a clean energy research and
development enterprise. Such consideration shall be upon application
submitted by the commissioner. Such application shall be made after a
public hearing in accordance with section nine hundred sixty-nine of
this article and in accordance with findings which shall consider
factors including but not limited to: the creation and retention of a
regionally significant number of skilled or otherwise quality jobs;
substantial capital investment; or the export of a substantial amount of
goods or services beyond the immediate region; and further findings as
to why such project cannot be accommodated within the distinct and
separate contiguous areas pursuant to section nine hundred fifty-seven
of this article. Such findings shall be published once a week for four
successive weeks, in two newspapers of the county of which the project
is to be located or if no newspaper is published therein, in the
newspaper nearest thereto. Proof of such publication shall be submitted
to the board. The board shall not act on such project or projects until
thirty days of the final publication of such findings.

(a-2) The empire zones designation board may consider designating
empire zone acreage for other regionally significant projects in
accordance with section nine hundred fifty-seven of this article, upon
application submitted by the commissioner. Such application shall be
made after a public hearing in accordance with section nine hundred
sixty-nine of this article and in accordance with findings which shall
consider factors including, but not limited to: the creation and
retention of a regionally significant number of skilled or otherwise
quality jobs; substantial capital investment; or the export of a
substantial amount of goods or services beyond the immediate region; and
further findings as to why such project cannot be accommodated within
the distinct and separate contiguous areas pursuant to section nine
hundred fifty-seven of this article. Such findings shall be published
once a week for four successive weeks, in two newspapers of the county
of which the project is to be located or if no newspaper is published
therein, in the newspaper nearest thereto. Proof of such publication
shall be submitted to the board. The board shall not act on such project
or projects until thirty days of the final publication of such findings.
Provided, however, that the commissioner shall promulgate rules and
regulations for the implementation of this subdivision after approval by
the empire zones designation board. Provided further, approval of such
projects and related regulations requires an affirmative vote by at
least five voting members of such board.

(a-3) The empire zones designation board shall approve the initial
distinct and separate contiguous areas as required by section nine
hundred fifty-seven of this article. Provided, however, such approval
shall be by unanimous vote.

(b) The empire zones designation board shall designate from the
recommendations made by the commissioner:

(i) Within eighteen months after the effective date of this article,
not more than ten empire zones;

(ii) In the period commencing eighteen months and ending three years
after the effective date of this article, not more than nine additional
empire zones until a maximum of nineteen empire zones have been
established statewide;

(iii) In the period commencing three years and ending eight years
after the effective date of this article, not more than fifteen
additional empire zones;

(iv) In the period commencing five years and ending nine years and six
months after the effective date of this article, not more than six
additional empire zones;

(v) In the period commencing nine years and six months after the
effective date of this article, not more than twelve additional empire
zones each which shall contain a defense or military base or facility
which has been designated for closure or realignment or a site currently
or formerly owned or operated by either the (1) United States military
or (2) a defense contractor whose employment in New York state was
adversely affected by a reduction in military spending;

(vi) In the period commencing thirteen years after the effective date
of this article, not more than fourteen additional empire zones, not
less than three of which shall be designated pursuant to the criteria
set forth in subdivision (d) of section nine hundred fifty-eight of this
article;

(vii) In the period commencing fifteen years after the effective date
of this article, not more than four additional empire zones, all of
which shall be designated pursuant to the criteria set forth in
subdivisions (a), (b), (c) and (d) of section nine hundred fifty-eight
of this article;

(viii) In the period commencing fifteen years after the effective date
of this article, not more than two additional empire zones, all of which
shall be designated pursuant to the criteria set forth in subdivisions
(a), (b), (c) and (d) of section nine hundred fifty-eight of this
article.

(ix) In the period commencing nineteen years after the effective date
of this article, not more than three additional empire zones, as
determined pursuant to a memorandum of understanding to be executed by
the governor, the temporary president of the senate and the speaker of
the assembly, each of which shall be designated from among the counties
identified in subdivision (f) of section nine hundred fifty-eight of
this article.

(x) In the period commencing twenty years after the effective date of
this article, not more than six additional empire zones, as determined
pursuant to a memorandum of understanding to be executed by the
governor, the temporary president of the senate and the speaker of the
assembly, all of which shall be designated from among the counties
identified in subdivision (f) of section nine hundred fifty-eight of
this article. Provided, however, said designation does not include
counties designated pursuant to paragraph (ix) of this subdivision.

(xi) In the period commencing twenty-one years after the effective
date of this article, not more than three additional empire zones, as
determined pursuant to a memorandum of understanding to be executed by
the governor, the temporary president of the senate and the speaker of
the assembly, all of which shall be designated from among the counties
identified in subdivision (f) of section nine hundred fifty-eight of
this article. Provided, however, said designation does not include
counties designated pursuant to paragraphs (ix) and (x) of this
subdivision.

(xiii) Within six months after the effective date of this paragraph,
the Oneida-Herkimer empire zone may be designated as two separate two
square mile empire zones as designated pursuant to a memorandum of
understanding to be executed by the governor, the temporary president of
the senate and the speaker of the assembly.

(c) In reviewing applications for designation of an area as an empire
zone, the board shall consider the level of local participation
including, but not limited to, local tax incentives and the provision of
local services.

(d) Notwithstanding any other provision of this article, such zones
designated, shall be, as far as practicable, equally distributed between
urban, suburban and rural areas. In addition, zone designation, as far
as practicable, shall be based upon a priority system of economic need.

(e) (i) The department of audit and control, the department of
taxation and finance and the department of economic development shall
prepare reports on the management and the economic and fiscal impact of
empire zones. The analysis of the fiscal and economic impact of the
empire zones shall include, but not be limited to, a review of the cost
of providing the tax benefits referred to in section nine hundred
sixty-six of this article and the amount of real property tax increments
segregated for infrastructure improvements as authorized by section nine
hundred sixty-seven of this article. Such reports shall be transmitted
to the governor and the legislature by September first, two thousand six
and every year thereafter.

(ii) (1) whether quantifiable benefits attributable to the program
justify its direct costs to the state and participating localities;

(2) whether the program has contributed to the economic revitalization
of the zones by stimulating (A) the creation and retention of permanent,
full-time, quality private sector jobs; (B) the creation, location and
expansion of businesses in the zones; (C) capital and human resource
investments by zone businesses and new business development; and (D)
public and private investments in zone businesses and economic and
community development activities important for economic revitalization;

(3) whether the program has created employment and business
development opportunities for residents of the zones and job training
opportunities for residents and employees of zone businesses;

(4) whether the program has (A) resulted in new and improved local
administrative capacity within the zones to plan for and capture
economic opportunities and deliver and coordinate economic, community
and human resource development services, and (B) increased commitments
of local resources to zone revitalization, including support from the
business community;

(5) whether the program has stimulated assistance from state, federal
and other economic, community and human resource development programs
relative to other areas and improved the delivery and coordination of
state services to the zones; and

(6) whether the program is being managed and evaluated effectively at
state and local levels.