S03118 Summary:

BILL NOS03118
 
SAME ASNo same as
 
SPONSORPARKER
 
COSPNSR
 
MLTSPNSR
 
Add S859-c, Gen Muni L
 
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.
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S03118 Actions:

BILL NOS03118
 
01/30/2013REFERRED TO LOCAL GOVERNMENT
01/08/2014REFERRED TO LOCAL GOVERNMENT
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S03118 Floor Votes:

There are no votes for this bill in this legislative session.
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S03118 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3118
 
                               2013-2014 Regular Sessions
 
                    IN SENATE
 
                                    January 30, 2013
                                       ___________
 
        Introduced  by  Sen.  PARKER -- 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:

 
     1    Section 1. The general municipal  law  is  amended  by  adding  a  new
     2  section 859-c to read as follows:
     3    §  859-c. Additional procedures for financial assistance. 1.  Prior to
     4  providing financial assistance, the agency shall follow  certain  proce-
     5  dures which must include at least all of the following:
     6    (a)  A description of the development assistance, including the amount
     7  and type. The description must include the  fair  market  value  of  the
     8  development  assistance to the recipient, including the value of convey-
     9  ing any property at less than a fair  market  price  and  including  any
    10  other  in-kind  benefits to the person receiving the development assist-
    11  ance.
    12    (b) A statement specifying the  public  purpose  for  the  development

    13  assistance.  The  public purpose specified in the development assistance
    14  agreement may not be increasing the tax base. Job retention may be spec-
    15  ified in the development assistance agreement as a public  purpose  only
    16  if  job loss by the person receiving the development assistance is immi-
    17  nent and demonstrable.
    18    (c) The general goals for the development assistance.
    19    (d) Goals for the number of jobs to be created by the person receiving
    20  the development assistance during the two years following the  date  the
    21  development  assistance is granted. The goals may include separate goals
    22  for the number of part-time jobs and full-time jobs, and in cases  where
    23  job  loss is imminent and demonstrable, separate goals for the number of

    24  jobs retained.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06898-01-3

        S. 3118                             2
 
     1    (e) Wage goals for the jobs to be created or retained  by  the  person
     2  receiving  the development assistance during the two years following the
     3  date the development assistance is granted.
     4    (f)  A description of the financial obligation of the person receiving
     5  the development assistance if the goals  specified  in  the  development
     6  assistance agreement are not met.
     7    (g) A statement explaining why the development assistance is needed to

     8  achieve  the  public  purpose  specified  in  the development assistance
     9  agreement.
    10    (h) A commitment by the person receiving the development assistance to
    11  continue operations at any site where the development assistance is used
    12  for at least five years after the date  the  development  assistance  is
    13  provided.
    14    (i)  The  name  and  address of the parent corporation or other parent
    15  entity, if any, of the person receiving the development assistance.
    16    (j) A list of  all  development  assistance  provided  to  the  person
    17  receiving  development  assistance during the immediately preceding five
    18  years by other granting bodies.
    19    2. A development agreement entered into under  this  article  must  be

    20  approved by the following:
    21    (a)  The  fiscal  body  of the county where the development assistance
    22  will be used, if the development assistance  will  not  be  used  solely
    23  within a municipality.
    24    (b)  The  municipal fiscal body, if the development assistance will be
    25  used only within a municipality.
    26    3. If development assistance provided  by  a  granting  body  directly
    27  benefits  more  than one person, the granting body must assign a propor-
    28  tion of the development assistance to each person receiving  development
    29  assistance.  The proportion assigned by the granting body to each person
    30  must reflect a reasonable estimate of the person's share  of  the  total
    31  benefits of the development assistance.

    32    4.  (a)  The  development assistance agreement must include provisions
    33  that specify the obligation of  the  person  receiving  the  development
    34  assistance  to  repay  the development assistance if the person does not
    35  meet the goals specified by the development  assistance  agreement.  The
    36  development  assistance  agreement  must  require at least that a person
    37  failing to meet the goals must pay back the development assistance  plus
    38  interest  to the granting body. A repayment required by this section may
    39  be prorated to reflect partial fulfillment of goals. The  interest  rate
    40  used  to  calculate  the repayment must equal the gross domestic product
    41  implicit price deflator for the applicable period.

    42    (b) An agency may, after a public hearing, extend for  not  more  than
    43  one  year  the  period  for meeting the goals specified by a development
    44  assistance agreement.
    45    5. A person that fails to meet the terms of a  development  assistance
    46  agreement  may  not  receive  additional  development  assistance from a
    47  granting body until the earlier of the date:
    48    (a) five years after the person's failure  to  meet  the  terms  of  a
    49  development assistance agreement; or
    50    (b)  the  person  satisfies its repayment obligation under subdivision
    51  four of this section.
    52    § 2. This act shall take effect on the first of November next succeed-
    53  ing the date on which it shall have become a law.
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