Enacts the economic development performance review act and prescribes the functions and purposes of the special evaluation program bond act; requires state agencies involved in economic development activities to prepare an annual comprehensive performance review of their programs.
TITLE OF BILL: An act to amend the economic development law, in relation to establishing the economic development performance review act
SUMMARY OF PROVISIONS: Adds a new Article 15 to the Economic Development Law which directs any State agency engaged in economic development activities to prepare an annual performance review of their programs.
JUSTIFICATION: Economic development incentives remain important tools for communities to attract and retain growing businesses. These incentives are by no means giveaway programs. They are investments that must generate positive economic returns by creating jobs and generating new tax revenue. As such, we must ensure that state funded programs for economic development are performance-based; Programs must reach job and investment goals in order to receive benefits. This bill would ensure that economic development programs funded with state funds are subject to annual review, enabling the state to evaluate the effectiveness of these programs and make any necessary changes.
In addition, state legislature is ultimately accountable for the use of state funds. As such, it must put in place proper procedures to ensure fiscal accountability, to be able to determine if public funds are being invested wisely in programs that have the greatest return to the state. Smart investments in economic development create jobs and create revenues for the state. Verifying that programs are working brings a higher level of accountability to the use of public funds.
LEGISLATIVE HISTORY: 01/13/11 REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT & SMALL BUSINESS 01/04/12 REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT & SMALL BUSINESS
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5533 2013-2014 Regular Sessions IN SENATE May 16, 2013 ___________Introduced by Sen. GIPSON -- 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 economic development performance review 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 15 to read as follows: ARTICLE 15 ECONOMIC DEVELOPMENT PERFORMANCE REVIEW ACT SECTION 270. DEFINITION. 271. PROGRAM IMPLEMENTATION. 272. PERFORMANCE REVIEW. S 270. DEFINITION. FOR PURPOSES OF THIS ARTICLE, "ECONOMIC DEVELOPMENT PROGRAM" SHALL MEAN A PROGRAM THAT PROVIDES SERVICES FOR THE PURPOSE OF EFFECTING THE ECONOMIC CONDITIONS OF THE STATE, PROVIDES TRAINING OR EMPLOYMENT SERVICES, SUPPORTS AN ECONOMIC DEVELOPMENT ACTIVITY BY ENHANCING THE SKILLS OF THE STATE'S WORKFORCE, PREPARES INDIVIDUALS FOR EMPLOYMENT, IMPROVES OPPORTUNITIES FOR INDIVIDUALS TO BECOME EMPLOYED, OR PROMOTES THE STATE ECONOMY. S 271. PROGRAM IMPLEMENTATION. 1. ON OR BEFORE SEPTEMBER FIRST, IN THE YEAR AFTER THIS SECTION BECAME LAW, EACH STATE AGENCY ADMINISTRATIVELY RESPONSIBLE FOR ECONOMIC DEVELOPMENT ACTIVITIES SHALL PREPARE A SEPARATE PLAN FOR EACH PROGRAM THAT SUCH AGENCY ADMINISTERS. EACH PLAN SHALL INCLUDE A DESCRIPTION OF PROPOSED PROGRAM ACTIVITIES, A DESCRIPTION OF A MECHANISM FOR FUNDING DISTRIBUTION, PROGRAM OBJECTIVES, POPULATION TO BE SERVED, INSTITUTIONS ELIGIBLE TO RECEIVE FUNDS, AND A DESCRIPTION OF THE COORDINATION AND LINKAGES BETWEEN THIS PROGRAM AND OTHER PROGRAM ACTIV- ITIES FUNDED SEPARATELY. SUCH PLAN SHALL ALSO INCLUDE A PERFORMANCE REVIEW COMPONENT AS PART OF THE IMPLEMENTATION OF EACH PROGRAM WHICH SHALL DESCRIBE HOW THE AGENCY WILL MONITOR THE DELIVERY OF SERVICES UNDER THE PROGRAM AND WHICH SHALL SET FORTH THE MEASURE OF EFFECTIVENESS OF THE SERVICES BEING PROVIDED.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07853-02-3 S. 5533 2
2. PROGRAM PLANS SHALL BE SUBMITTED TO THE DEPARTMENT, THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE, FOR REVIEW AND COMMENT. 3. THE PROVISIONS OF THIS SECTION SHALL NOT EXEMPT ANY AGENCY FROM REQUIREMENTS RELATING TO THE PREPARATION AND SUBMISSION OF PROGRAM PLANS PURSUANT TO ANY OTHER PROVISION OF LAW. S 272. PERFORMANCE REVIEW. 1. THE PERFORMANCE REVIEW COMPONENT OF EACH PROGRAM PLAN SHALL, AT A MINIMUM, INCLUDE THE FOLLOWING: (A) A STATEMENT ON LEGISLATIVE HISTORY AND INTENT; (B) A STATEMENT OF PROGRAM OBJECTIVES WHICH IDENTIFIES OUTCOMES ATTRIBUTABLE TO THE PROGRAM, ANTICIPATED PERFORMANCE LEVELS, AND INDICA- TORS OF THE EFFECTIVENESS OF THE PROGRAM; (C) DEFINED QUANTITATIVE MEASURES WHICH WILL BE INCLUDED AS PART OF THE PERFORMANCE REVIEW REPORT INCLUDING, BUT NOT LIMITED TO, A DESCRIPTION OF THE TARGETED POPULATION, CRITERIA FOR PARTICIPANT SELECTION, DEMOGRAPHICS ON PARTICIPANTS, MEASURES OF PROGRAM ACTIVITY, INVENTORY OF SERVICES PROVIDED, AND BUDGET INFORMATION ON PROGRAMS AND ADMINISTRATIVE EXPENDITURES INCLUDING, BUT NOT LIMITED TO, COSTS PER PARTICIPANT. FOR THOSE PROGRAMS WHERE AN OBJECTIVE IS JOB PLACEMENT, DATA SHALL INCLUDE INFORMATION ON THE OCCUPATIONS WHICH PARTICIPANTS ENTER, THE RATE OF JOB RETENTION, PRE-PROGRAM WAGE EARNINGS AND POST-PROGRAM WAGE EARNINGS AS WELL AS OTHER APPROPRIATE MEASURES WHICH INDICATE THE EXTENT TO WHICH PROGRAM ACTIVITIES MEET PROGRAM OBJECTIVES. OTHER PERFORMANCE INDICATORS THAT APPROPRIATELY DESCRIBE THE EFFECT OF THE PROGRAM AND DATA WHICH REFLECTS FOLLOW-UP ACTIVITY APPROPRIATE TO THE SERVICES PROVIDED SHALL ALSO BE INCLUDED AS PART OF THE PERFORMANCE REVIEW REPORT; (D) A STATEMENT OF METHODOLOGY WHICH WILL RESULT IN A COMPARISON OF PROGRAM OUTCOMES AGAINST PROGRAM OBJECTIVES; AND (E) ANY ADDITIONAL PERFORMANCE REVIEW OR INFORMATION AS MAY BE REQUIRED BY LAW. 2. (A) THE PERFORMANCE REVIEW REPORT FOR EACH PROGRAM SHALL BE SUBMIT- TED TO THE COMMISSIONER FOR REVIEW AND RECOMMENDATION. (B) THE REPORT SHALL INCLUDE, AT A MINIMUM, ALL PROGRAM DATA AND AN ANALYSIS WHICH COMPARES PERFORMANCE OUTCOMES AGAINST PROGRAM OBJECTIVES AS SPECIFIED IN THE PERFORMANCE REVIEW COMPONENT OF THE PROGRAM PLAN DEFINED HEREIN AND SHALL INCLUDE A PERFORMANCE REVIEW OF ACTIVITY FOR THE COMPLETED PROGRAM YEAR IMMEDIATELY PRECEDING THE ISSUANCE OF THE REPORT AND AN INTERIM PERFORMANCE REVIEW OF CURRENT PROGRAM YEAR ACTIV- ITY IF APPLICABLE. 3. BASED ON THE REVIEW CONDUCTED PURSUANT TO PARAGRAPH (A) OF SUBDIVI- SION TWO OF THIS SECTION, THE DEPARTMENT SHALL PREPARE A UNIFIED SUMMARY OF PERFORMANCE REVIEW REPORTS SUBMITTED BY EACH AGENCY PURSUANT TO THIS ARTICLE FOR SUBMISSION TO THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE NO LATER THAN JANUARY THIRTY-FIRST, TWO THOUSAND FOURTEEN AND EACH YEAR THEREAFTER PROVIDED, HOWEVER, THAT THE DEPARTMENT SHALL MAKE AVAILABLE EACH INDIVIDUAL PROGRAM PERFORMANCE REVIEW REPORT SUBMITTED PURSUANT TO THIS ARTICLE UPON REQUEST OF THE LEGISLATURE. THE DEPARTMENT SHALL INCLUDE IN SUCH SUMMARY RECOMMENDATIONS TO THE GOVERNOR AND THE LEGISLATURE RELATING TO IMPROVED PROGRAM COORDINATION AND SERVICE DELIVERY, PROGRAM IMPROVEMENTS OR ENHANCEMENTS AND NECESSARY STATUTORY CHANGES. 4. THE PROVISIONS OF THIS SECTION SHALL NOT EXEMPT ANY AGENCY FROM REQUIREMENTS PURSUANT TO ANY OTHER PROVISION OF LAW. S 2. This act shall take effect immediately.