Provides that a public authority or municipality may not provide a tax benefit without declaring a specific published listing of the public benefit.
TITLE OF BILL: An act to amend the public authorities law, in relation to public benefits in exchange for public funds
PURPOSE OR GENERAL IDEA OF THE BILL: To assure there is a public benefit being achieved when state and local authorities and other governmental entities provide economic or financial benefits to private entities.
SUMMARY OF PROVISIONS: Amends the Public Authorities Law by adding a new section 2928 which would ban state and local authorities and other governmental entities from issuing, approving or seeking the grant or transfer of economic or financial benefits to a private entity without specific public benefits being published first.
JUSTIFICATION: As taxpayer support for private corporations and private economic activity has mushroomed in recent years, the fundamental question of public benefit has surfaced and resurfaced, without a consistent and satisfying answer. Critics on both the left and right have decried these taxpayer subsidies as socialism, wasteful, corrupt, anti-free enterprise, and unfair to average citizens whose economic struggles are undertaken without public subsidy. Yet the phrases "economic development", 'job creation", "growth", etc. retain enormous political power. A real analysis of these subsidies has yet to be done, but there clearly is growing pressure to insure that public benefits flaw from public investments. It is clear, however, that everyone from the most ardent supporter to the most ardent critic of the deal agrees that public subsidies are a decision to employ taxpayer money for the benefit of the public. Without a measurable, identifiable, specific and significant public benefit, public financial assistance should not be given. This bill will protect public funds and ensure that a true public benefit will be achieved when large economic development projects are subsidized by New Yorkers.
LEGISLATIVE HISTORY: 2021-12: S.4449/A.6118 - CORPORATIONS/corporations 2009-10: A.7659 -- corporations
FISCAL IMPLICATIONS: No negative fiscal implications.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 2759 2013-2014 Regular Sessions IN SENATE January 23, 2013 ___________Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Author- ities and Commissions AN ACT to amend the public authorities law, in relation to public bene- fits in exchange for public funds THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The public authorities law is amended by adding a new section 2928 to read as follows: S 2928. PUBLIC BENEFITS. NO STATE AUTHORITY OR LOCAL AUTHORITY AS DEFINED BY SECTION TWO OF THIS CHAPTER AND NO OTHER GOVERNMENTAL ENTITY MAY ISSUE, APPROVE OR SEEK THE GRANT OR TRANSFER OF ANY ECONOMIC OR FINANCIAL BENEFIT TO A PRIVATE ENTITY WITHOUT A SPECIFIC PUBLISHED LIST- ING OF THE BENEFITS TO BE RECEIVED BY THE PUBLIC. SUCH BENEFITS SHALL INCLUDE BUT NOT BE LIMITED TO EMPLOYMENT, PUBLIC ACCESS, AND PRIVATE INVESTMENT. THE PUBLISHED LISTING SHALL BE MADE PUBLIC AT LEAST SIXTY DAYS BEFORE THE ISSUANCE OF THE ECONOMIC OR FINANCIAL BENEFITS. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05162-01-3