NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6606
SPONSOR: Solages TITLE OF BILL:
An act to amend the general municipal law, in relation to preventing the
use of funds, financial incentives, subsidies or tax exemptions for
project occupants which are not public
PURPOSE::
This bill would prohibit industrial development agencies (IDAs) from
giving financial assistance to projects where the project occupant is
kept secret from the public. Taxpayers should know which companies their
money is going to support.
SUMMARY::
Section 1. Amends section 862 of the general municipal law by adding a
new subdivision 3. Section 2: Amends section 874 of the general munici-
pal law by adding a new subdivision 13. Section 3: Sets the effective
date.
JUSTIFICATION::
The General Municipal Law currently provides for the allocation of
public funds, financial incentives, subsidies, or tax exemptions to
promote economic development in New York State. However, there is a
concern that these incentives are being used to benefit private compa-
nies or individuals, rather than the public interest. Each year, local
industrial development agencies grant millions of dollars of financial
assistance in the form of tax incentives, abatements, and payment in
lieu of taxes (PILOT) agreements to projects seeking financial assist-
ance. Sometimes, these incentives are given out without public knowledge
of which company is receiving them.
New Yorkers have a right to know which companies are getting publicly-
funded incentives or tax exemptions. This bill will prohibit IDAs from
giving incentives or exemptions to a project unless the occupant of the
project is publicly known, ensuring that public funds, financial incen-
tives, subsidies, or tax exemptions are not used to support projects
that primarily benefit private entities.
Overall, this proposed bill is necessary to ensure that public financial
assistance is used in a way that benefits the public interest. By
requiring that projects receiving such resources have a clear public
benefit, this bill would promote economic development that benefits the
community as a whole, rather than just a select few.
RACIAL JUSTICE IMPACT:
TBD.
GENDER JUSTICE IMPACT:
TBD.
LEGISLATIVE HISTORY::
2021-22: A5200; referred to local governments.
2019-20: A7256; referred to local governments.
FISCAL IMPLICATIONS:: TBD.
EFFECTIVE DATE::
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6606
2023-2024 Regular Sessions
IN ASSEMBLY
April 24, 2023
___________
Introduced by M. of A. SOLAGES -- read once and referred to the Commit-
tee on Local Governments
AN ACT to amend the general municipal law, in relation to preventing the
use of funds, financial incentives, subsidies or tax exemptions for
project occupants which are not public
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 862 of the general municipal law is amended by
2 adding a new subdivision 3 to read as follows:
3 (3) No funds, financial incentives or subsidies of the agency shall be
4 used in respect of any project in which the project occupant as defined
5 in section eighteen hundred one of the public authorities law is not
6 publicly disclosed at the time of the public hearing for the project
7 required by subdivision two of section eight hundred fifty-nine-a of
8 this title.
9 § 2. Section 874 of the general municipal law is amended by adding a
10 new subdivision 13 to read as follows:
11 (13) No tax exemptions shall be granted to any project if the project
12 occupant as defined in section eighteen hundred one of the public
13 authorities law is not publicly disclosed at the time of the public
14 hearing for the project required by subdivision two of section eight
15 hundred fifty-nine-a of this title.
16 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04551-01-3
