NY State Senate Bill 2023-S5279

Senate Bill S5279

2023-2024 Legislative Session

Establishes additional procedures to be followed by industrial development agencies prior to making development loans

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Current Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to local government
Mar 01, 2023	referred to local government

co-Sponsors

2023-S5279 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Add §859-d, Gen Muni L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S1918
2011-2012: S3393
2013-2014: S3118
2015-2016: S1585
2017-2018: S3096
2019-2020: S4373
2021-2022: S4671

2023-S5279 (ACTIVE) - Summary

Establishes additional procedures to be followed by industrial development agencies prior to making loans; includes goals to be achieved by project such as job creation, continuance of business or industry, and public purpose to be attained.

2023-S5279 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5279

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to industrial
development agencies

 
PURPOSE:

This bill establishes additional procedures to be followed by industrial
development agencies prior to making industrial development loans.

 
SUMMARY OF PROVISIONS:

Section 1: The general municipal law is amended by adding a new section
859d.

Section 2: This act shall take effect on the first of November next
succeeding the date on which it shall have become a law.

JUSTIFICATION:

In certain instances, resources of the state which are distributed for
economic development initiatives are implemented in a manner neither
planned nor expected by the development agency issuing assistance.

This legislation would put in place a safeguard to ensure that the
intended purpose of the agreement, as consented to by both the applicant
and the industrial development agency would remain intact.

 
PRIOR LEGISLATIVE HISTORY:

2021-22: S4671 - Referred to Local Government

2019-20: S.4373 - Referred to Local Gov't

2017-18: S.3096 - Referred to Local Gov't

2015-16: S.1585 - Referred to Local Gov't

2013-14: S.3118 - Referred to Local Gov't

2011-12: S.3393 - Referred to Local Gov't

2009-10: S.1918 - Died in Local Gov't

2007-08: S.4505 - Died in Local Gov't

2005-06: S.705/A.3234 - Died in Local Gov't/Died in Local Gov't

2003-04: S.1768/A.378 - Died in Local Gov't/Died in Local Gov't

2001-02: S.523/A.530 - Died in Local Gov't/Died in Local Govt

1999-'00: S.7875/A.9849 - Died in Local Gov't/ Died in Local Gov't

 
FISCAL IMPLICATIONS:

Minimal.

 
EFFECTIVE DATE:
This act shall take effect on the first of November next succeeding the
date on which it shall have become a law.

2023-S5279 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5279
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 1, 2023
                                ___________
 
 Introduced by Sens. PARKER, SEPULVEDA -- 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.  The  general  municipal  law  is  amended by adding a new
 section 859-d to read as follows:
   § 859-D. ADDITIONAL PROCEDURES FOR FINANCIAL ASSISTANCE. 1.  PRIOR  TO
 PROVIDING  FINANCIAL  ASSISTANCE, THE AGENCY SHALL FOLLOW CERTAIN PROCE-
 DURES WHICH MUST INCLUDE AT LEAST ALL OF THE FOLLOWING:
   (A) A DESCRIPTION OF THE DEVELOPMENT ASSISTANCE, INCLUDING THE  AMOUNT
 AND  TYPE.  THE  DESCRIPTION  MUST  INCLUDE THE FAIR MARKET VALUE OF THE
 DEVELOPMENT ASSISTANCE TO THE RECIPIENT, INCLUDING THE VALUE OF  CONVEY-
 ING  ANY  PROPERTY  AT  LESS  THAN A FAIR MARKET PRICE AND INCLUDING ANY
 OTHER IN-KIND BENEFITS TO THE PERSON RECEIVING THE  DEVELOPMENT  ASSIST-
 ANCE.
   (B)  A  STATEMENT  SPECIFYING  THE  PUBLIC PURPOSE FOR THE DEVELOPMENT
 ASSISTANCE. THE PUBLIC PURPOSE SPECIFIED IN THE  DEVELOPMENT  ASSISTANCE
 AGREEMENT MAY NOT BE INCREASING THE TAX BASE. JOB RETENTION MAY BE SPEC-
 IFIED  IN  THE DEVELOPMENT ASSISTANCE AGREEMENT AS A PUBLIC PURPOSE ONLY
 IF JOB LOSS BY THE PERSON RECEIVING THE DEVELOPMENT ASSISTANCE IS  IMMI-
 NENT AND DEMONSTRABLE.
   (C) THE GENERAL GOALS FOR THE DEVELOPMENT ASSISTANCE.
   (D) GOALS FOR THE NUMBER OF JOBS TO BE CREATED BY THE PERSON RECEIVING
 THE  DEVELOPMENT  ASSISTANCE DURING THE TWO YEARS FOLLOWING THE DATE THE
 DEVELOPMENT ASSISTANCE IS GRANTED. THE GOALS MAY INCLUDE SEPARATE  GOALS
 FOR  THE NUMBER OF PART-TIME JOBS AND FULL-TIME JOBS, AND IN CASES WHERE
 JOB LOSS IS IMMINENT AND DEMONSTRABLE, SEPARATE GOALS FOR THE NUMBER  OF
 JOBS RETAINED.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07267-01-3
 S. 5279                             2

 
   (E)  WAGE  GOALS  FOR THE JOBS TO BE CREATED OR RETAINED BY THE PERSON
 RECEIVING THE DEVELOPMENT ASSISTANCE DURING THE TWO YEARS FOLLOWING  THE
 DATE THE DEVELOPMENT ASSISTANCE IS GRANTED.
   (F)  A DESCRIPTION OF THE FINANCIAL OBLIGATION OF THE PERSON RECEIVING
 THE DEVELOPMENT ASSISTANCE IF THE GOALS  SPECIFIED  IN  THE  DEVELOPMENT
 ASSISTANCE AGREEMENT ARE NOT MET.
   (G) A STATEMENT EXPLAINING WHY THE DEVELOPMENT ASSISTANCE IS NEEDED TO
 ACHIEVE  THE  PUBLIC  PURPOSE  SPECIFIED  IN  THE DEVELOPMENT ASSISTANCE
 AGREEMENT.
   (H) A COMMITMENT BY THE PERSON RECEIVING THE DEVELOPMENT ASSISTANCE TO
 CONTINUE OPERATIONS AT ANY SITE WHERE THE DEVELOPMENT ASSISTANCE IS USED
 FOR AT LEAST FIVE YEARS AFTER THE DATE  THE  DEVELOPMENT  ASSISTANCE  IS
 PROVIDED.
   (I)  THE  NAME  AND  ADDRESS OF THE PARENT CORPORATION OR OTHER PARENT
 ENTITY, IF ANY, OF THE PERSON RECEIVING THE DEVELOPMENT ASSISTANCE.
   (J) A LIST OF  ALL  DEVELOPMENT  ASSISTANCE  PROVIDED  TO  THE  PERSON
 RECEIVING  DEVELOPMENT  ASSISTANCE DURING THE IMMEDIATELY PRECEDING FIVE
 YEARS BY OTHER GRANTING BODIES.
   2. A DEVELOPMENT AGREEMENT ENTERED INTO UNDER  THIS  ARTICLE  MUST  BE
 APPROVED BY THE FOLLOWING:
   (A)  THE  FISCAL  BODY  OF THE COUNTY WHERE THE DEVELOPMENT ASSISTANCE
 WILL BE USED, IF THE DEVELOPMENT ASSISTANCE  WILL  NOT  BE  USED  SOLELY
 WITHIN A MUNICIPALITY.
   (B)  THE  MUNICIPAL FISCAL BODY, IF THE DEVELOPMENT ASSISTANCE WILL BE
 USED ONLY WITHIN A MUNICIPALITY.
   3. IF DEVELOPMENT ASSISTANCE PROVIDED  BY  A  GRANTING  BODY  DIRECTLY
 BENEFITS  MORE  THAN ONE PERSON, THE GRANTING BODY MUST ASSIGN A PROPOR-
 TION OF THE DEVELOPMENT ASSISTANCE TO EACH PERSON RECEIVING  DEVELOPMENT
 ASSISTANCE.  THE PROPORTION ASSIGNED BY THE GRANTING BODY TO EACH PERSON
 MUST REFLECT A REASONABLE ESTIMATE OF THE PERSON'S SHARE  OF  THE  TOTAL
 BENEFITS OF THE DEVELOPMENT ASSISTANCE.
   4.  (A)  THE  DEVELOPMENT ASSISTANCE AGREEMENT MUST INCLUDE PROVISIONS
 THAT SPECIFY THE OBLIGATION OF  THE  PERSON  RECEIVING  THE  DEVELOPMENT
 ASSISTANCE  TO  REPAY  THE DEVELOPMENT ASSISTANCE IF THE PERSON DOES NOT
 MEET THE GOALS SPECIFIED BY THE DEVELOPMENT  ASSISTANCE  AGREEMENT.  THE
 DEVELOPMENT  ASSISTANCE  AGREEMENT  MUST  REQUIRE AT LEAST THAT A PERSON
 FAILING TO MEET THE GOALS MUST PAY BACK THE DEVELOPMENT ASSISTANCE  PLUS
 INTEREST  TO THE GRANTING BODY. A REPAYMENT REQUIRED BY THIS SECTION MAY
 BE PRORATED TO REFLECT PARTIAL FULFILLMENT OF GOALS. THE  INTEREST  RATE
 USED  TO  CALCULATE  THE REPAYMENT MUST EQUAL THE GROSS DOMESTIC PRODUCT
 IMPLICIT PRICE DEFLATOR FOR THE APPLICABLE PERIOD.
   (B) AN AGENCY MAY, AFTER A PUBLIC HEARING, EXTEND FOR  NOT  MORE  THAN
 ONE  YEAR  THE  PERIOD  FOR MEETING THE GOALS SPECIFIED BY A DEVELOPMENT
 ASSISTANCE AGREEMENT.
   5. A PERSON THAT FAILS TO MEET THE TERMS OF A  DEVELOPMENT  ASSISTANCE
 AGREEMENT  MAY  NOT  RECEIVE  ADDITIONAL  DEVELOPMENT  ASSISTANCE FROM A
 GRANTING BODY UNTIL THE EARLIER OF THE DATE:
   (A) FIVE YEARS AFTER THE PERSON'S FAILURE  TO  MEET  THE  TERMS  OF  A
 DEVELOPMENT ASSISTANCE AGREEMENT; OR
   (B)  THE  PERSON  SATISFIES ITS REPAYMENT OBLIGATION UNDER SUBDIVISION
 FOUR OF THIS SECTION.
   § 2. This act shall take effect on the first of November next succeed-
 ing the date on which it shall have become a law.

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Senate Bill S5279

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Sponsored By

Kevin S. Parker