A03659 Summary:

BILL NO    A03659 

SAME AS    Same as S 1241

SPONSOR    Hoyt (MS)

COSPNSR    John, Brodsky, Magnarelli, Nolan, Cahill, Gottfried, Arroyo, Latimer,
           Schroeder, Peoples-Stokes, Morelle, Gunther, DelMonte, Lancman,
           Fields, Rivera P, Espaillat, Millman, Jeffries, O'Donnell, Maisel,
           Boyland, Stirpe, Englebright, Kavanagh, Kellner, Rabbitt, Colton,
           Paulin, Rosenthal, Sweeney, Alessi, Gantt, Cusick, Koon, Benedetto,
           Hooper, Gibson, Meng

MLTSPNSR   Ball, Benjamin, Camara, Galef, Gianaris, Heastie, McEneny, Perry,
           Pheffer, Ramos, Reilly, Spano, Towns, Weisenberg, Zebrowski

Amd Gen Muni L, generally; amd SS100 & 183, Ec Dev L; amd S220, Lab L; amd
SS1963-a & 2315, Pub Auth L; amd S8, Chap 444 of 1997; amd S5, Chap 905 of 1986

Relates to the function of industrial development agencies; relates to the
application and community impact report, financial assistance agreements, wages
and standards, displaced worker protection, complaints and appeals, and reports
by recipients.

A03659 Actions:

BILL NO    A03659 

01/27/2009 referred to local governments
01/06/2010 referred to local governments

A03659 Votes:

A03659 Memo:

 BILL NUMBER:  A3659

 TITLE OF BILL :  An act to amend the general municipal law, the
economic development law, the labor law and the public authorities
law, in relation to the function of industrial development agencies
and making certain conforming changes; to amend chapter 444 of the
laws of 1997 amending the general municipal law and other laws
relating to the tax exemption status of industrial development
agencies, and chapter 905 of the laws of 1986 amending the general
municipal law relating to authorizing financing assistance for civic
facilities by industrial development agencies, in relation to the
effectiveness of such chapter

 PURPOSE OR GENERAL IDEA OF BILL : To increase the accountability and
improve the efficiency and transparency of the operations of
industrial Development Agencies (IDAs).

 SUMMARY OF SPECIFIC PROVISIONS :

This bill contains the following provisions:

* limits the financing of recreational facilities;

* dissolves IDAs without outstanding debt five years after their
creation;

* establishes requirements for board membership to include local
governments, school boards, organized labor and environmental
organizations;

* prohibits board members from including individuals with IDA business
ties or ownership interests;

* requires board members to attend at least 10 percent of all hearings
or forfeit their office;

* requires payment in lieu of taxes (PILOT) agreements to be
published, posted and available for public inspection;

* requires IDAs to maintain a website;

* requires IDAs to provide a "project report" to the State Comptroller
including: the total amount and type of financial assistance; foregone
tax revenue; total projects; and wage and job information;

* requires IDAs to maintain an official record of all proceedings, a
list of pending projects and a Payment in Lieu of Tax (PILOT) schedule
for all projects and requires that information to be posted and
available for public inspection;

* requires IDAs to provide assistance of less than $100,000 to at
least three projects a year unless there are no such requests or no
projects are funded that year;

* requires IDAs to establish criteria for project selection including
requiring reasonable job creation and retention goals;

* requires IDA hearings to be attended by no less than two board
members;

* requires project applicants to complete an application form,
including projected costs and financial assistance, the number of jobs
to be created and a statement as to whether or not officers or major
shareholders have been found to have violated any federal, state or
local law, rule or regulation related to environmental protection,

taxation, financial assistance, protection of workers or minority and
women-owned business enterprises;

* requires project applicants to complete a community impact report to
include an analysis of transportation and existing on-site
infrastructure;

* requires IDAs to suspend financial assistance to recipients found to
have committed a substantial violation of any federal, state or local
law, rule or regulation related to environmental protection, taxation,
financial assistance, protection of workers or minority and
women-owned business enterprises. IDAs found to have substantial
violations will be required to repay assistance with interest, and
will be prohibited from entering into a financial assistance agreement
with any other state or local agency until repayment is made;

* authorizes the Attorney General to commence an action to recover
financial assistance;

* requires the payment of prevailing wages for any construction or
building renovation work;

* requires all employees to be paid no less than the median hourly
wage for "all occupations" for the duration of the financial
assistance and for five years thereafter;

* requires the Commissioner of Labor to notify the IDA promptly after
a declaration that a violation has been committed by a recipient and
requires the IDA to immediately suspend financial assistance and seek
repayment of any assistance given;

* requires successor contractors, in cases where a previous contract
has been terminated, to retain all service employees for ninety days
after the date of contract termination and prohibits the discharge of
such employees without cause;

* establishes an IDA complaint process involving the IDA and the
Department of Economic Development;

* establishes a compliance schedule for green building standards based
on the building cost and the type of construction work to be
performed;

* authorizes the State Comptroller to investigate pirating complaints
and require repayment of assistance upon a determination that a
complaint is valid;

* requires the approval of the Public Authorities Control Board for
projects over $100 million;

* prohibits IDA funds from being used for projects not on a
brownfield, served by existing public sewer and water, or on lands
designated as suitable for conservation, unless the agency can
demonstrate that there is no viable alternative;

* requires hearing notice on the development of a PILOT policy by an
IDA to be provided to the members of the local governing body, with
copies of the adopted policy to be sent to the chief executive officer
and members of the governing body and posted on the IDA's website;

* requires deviations from the uniform PILOT policy to be approved in
writing by the affected governments;

* provides that whenever an agency has $100,000 or less in outstanding
debt it shall exist only to pay debt service on the bonds;

* establishes a uniform procedure for the dissolution and merger of
sub-county IDAs;

* makes brownfield projects eligible for low cost power programs and
waives bond issuance charges on those projects; and,

* consolidates the sub-county IDAs of Erie County;

 JUSTIFICATION : There are 116 IDAs throughout the State that provide
almost $400 million in net tax exemptions each year.  They are an
important economic development tool to promote job creation and
business retention. In return for increased economic activity and job
growth, IDAs provide exemptions from local, county and school taxes.
IDAs also issue low-interest bonds, called industrial development
revenue bonds, which allow companies to borrow money at low cost.

IDAs should be supporting responsible businesses that will deliver on
their promises to provide good jobs and services to New Yorkers. Since
IDAs give businesses significant local tax breaks, local communities
should get the promised benefits in exchange for sacrificing this much
needed revenue. This bill will greatly increase the accountability of
IDAs to the taxpayers and municipalities for whose benefit they are
created. It will serve to ensure a greater degree of uniformity in the
application process, more careful analysis and deliberation in the
decision-making process and enhanced monitoring once IDA benefits are
conferred. This bill would ensure that IDAs operate efficiently and in
the public interest.

 PRIOR LEGISLATIVE HISTORY :  2008: A8703 - Passed Assembly, A.8703-A
recalled and amended on third reading 2007: A8703 - Passed Assembly

 FISCAL IMPLICATIONS : None to the State.

 EFFECTIVE DATE : This act shall take effect on the ninetieth day
after it shall have become law.