Makes various provisions to reform local development corporations and industrial development agencies: conflicts of interest, standard tax exemption policies, municipal input, more information to be made public, economic impact statements, public hearings, and payment of prevailing wages.
STATE OF NEW YORK
________________________________________________________________________
7455
2019-2020 Regular Sessions
IN ASSEMBLY
May 3, 2019
___________
Introduced by M. of A. SIMON -- read once and referred to the Committee
on Local Governments
AN ACT to amend the not-for-profit corporation law and the general
municipal law, in relation to reforming local development corporations
and industrial development agencies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraphs 2 and 3 of paragraph (d) of section 1411 of
2 the not-for-profit corporation law are amended and a new subparagraph
3 2-a is added to read as follows:
4 (2) Notwithstanding the provisions of any general, special, or local
5 law, charter, or ordinance to the contrary, such sale or lease [may]
6 shall be made [without] with an appraisal, public notice, (except as
7 provided in subparagraph (4) of this paragraph) [or] and subject to
8 public bidding for such price or rental [and upon such terms as may be
9 agreed upon between the county, city, town or village and said local
10 development corporation; provided, however, that in]. In case of a
11 lease, the term may not exceed ninety-nine years; and provided, further,
12 that, in cities having a population of one million or more, no such sale
13 or lease shall be made without the approval of a majority of the members
14 of the [borough improvement board of the borough] community board or
15 boards for the community district or districts in which such real prop-
16 erty is located and the respective borough board, if such real property
17 is located in two or more community districts.
18 (2-a) (I) The corporation shall prepare or cause to be prepared, by
19 contract or otherwise, an economic impact statement on any action that
20 it proposes or approves which may have a significant effect on the
21 affected local economy and local community. The corporation shall use
22 all practicable means to realize the policies and goals set forth in
23 this section, and shall act and choose alternatives which, consistent
24 with social, economic, environmental, labor, and other essential consid-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06613-01-9
A. 7455 2
1 erations, to the maximum extent practicable, minimize or avoid adverse
2 economic effects, including effects revealed in the economic impact
3 statement process. Such a statement shall include a detailed statement
4 setting forth the following:
5 (A) a description of the proposed action and its economic and social
6 setting;
7 (B) the economic and social impact of the proposed action, including
8 short-term and long-term effects, especially to the affected community;
9 (C) any adverse economic effects which cannot be avoided should the
10 proposal be implemented;
11 (D) alternatives to the proposed action;
12 (E) any irreversible and irretrievable commitments and social
13 resources which would be involved in the proposed action, should it be
14 implemented;
15 (F) mitigation measures proposed to minimize the economic, social, or
16 other essential impacts; and
17 (G) the growth-inducing aspects of the proposed action, where applica-
18 ble and significant. Such a statement shall also include copies or a
19 summary of the substantive comments received by the corporation pursuant
20 to clause (IV) of this subparagraph and the corporation's response to
21 such comments. The purpose of an economic impact statement is to provide
22 detailed information about the effect which a proposed action is likely
23 to have on the economy, employment conditions, and social character-
24 istics of a community, to list ways in which any adverse effects of such
25 an action might be minimized, and to suggest alternatives to such an
26 action so as to form the basis for a decision as to whether or not to
27 undertake or approve such action. Such statement shall be clearly writ-
28 ten in a concise manner capable of being read and understood by the
29 public, shall deal with the specific, significant economic impacts which
30 can be reasonably anticipated, and shall not contain more detail than is
31 appropriate, considering the nature and magnitude of the proposed action
32 and the significance of its potential impacts.
33 (II) The corporation may require an applicant to submit an economic
34 report to assist the corporation in carrying out its responsibilities,
35 including the initial determination and, (where the applicant does not
36 prepare the economic impact statement), the preparation of an economic
37 impact statement under this subparagraph. The corporation may request
38 such other information from an applicant as it deems necessary for the
39 review of economic and social impacts. Notwithstanding any use of
40 outside resources or work, corporations shall make their own independent
41 judgment of the scope, contents, and adequacy of an economic impact
42 statement.
43 (III) (A) As early as possible in the formulation of a proposal for an
44 action, the corporation shall make an initial determination as to wheth-
45 er or not an economic impact statement need be prepared for the action.
46 With respect to actions involving the issuance to an applicant of a
47 permit or other entitlement, the corporation shall notify the applicant
48 in writing of its initial determination, specifying therein the basis
49 for such determination. Notice of the initial determination, along with
50 appropriate supporting findings on corporation actions, shall be kept on
51 file in the main office of the corporation for public inspection. If the
52 corporation determines that such statement is required, the corporation
53 or the applicant, at the applicant's option, shall prepare or cause to
54 be prepared a draft economic impact statement. If the applicant does
55 not exercise the option to prepare such statement, the corporation shall
56 prepare it, cause it to be prepared, or terminate its review of the
A. 7455 3
1 proposed action. Such statement shall describe the proposed action and
2 reasonable alternatives to the action, and briefly discuss, on the basis
3 of information then available, the remaining items required to be
4 submitted by clause (I) of this subparagraph. The purpose of a draft
5 economic statement is to relate economic and social considerations to
6 the inception of the planning process, to inform the public and other
7 public agencies as early as possible about proposed actions that may
8 significantly affect the quality of the economic and social conditions,
9 and to solicit comments which will assist the corporation in the deci-
10 sion making process in determining the economic and social consequences
11 of the proposed action. The draft statement shall resemble in form and
12 content the economic impact statement to be prepared after comments have
13 been received and considered pursuant to clause (I) of this subpara-
14 graph; provided, however, that the length and detail of the draft
15 economic statement will necessarily reflect the preliminary nature of
16 the proposal and the early stage at which it is prepared;
17 (B) The draft statement shall be filed with the appropriate governing
18 body of each municipality or political subdivision thereof for whose
19 benefit such corporation is established.
20 (IV) (A) After the filing of a draft economic impact statement, the
21 corporation shall determine whether or not to conduct a public hearing
22 on the economic impact of the proposed action. Such public hearing shall
23 be held in a city, town or village where the project is proposed to be
24 located or, in cities having a population of one million or more, in the
25 community district or districts in which such project is proposed to be
26 located or in the respective borough, if such project is proposed to be
27 located in two or more community districts. The corporation must give
28 at least thirty days' published notice of such public hearing and shall,
29 at the same time, provide notice of such hearing to the chief executive
30 officer of each affected tax jurisdiction within which the project is
31 proposed to be located. The notice of hearing must state the time and
32 place of the hearing, contain a general, functional description of the
33 project, describe the prospective location of the project, identify the
34 initial owner, operator, or manager of the project, generally describe
35 the financial assistance contemplated by the corporation with respect to
36 the project, and provide an opportunity for the public to review the
37 project application, which shall include an analysis of the costs and
38 benefits of the proposed project. The notice of hearing must be
39 published in the state register and the website of the corporation.
40 (B) If the corporation determines to hold such a hearing, it shall
41 commence the hearing within sixty days of the filing and, unless the
42 proposed action is withdrawn from consideration, shall prepare the
43 economic impact statement within forty-five days after the close of the
44 hearing, except as otherwise provided. The need for such a hearing shall
45 be determined in accordance with procedures adopted by the corporation.
46 If no hearing is held, the corporation shall prepare and make available
47 the economic impact statement within sixty days after the filing of the
48 draft, except as otherwise provided.
49 (C) Notwithstanding the specified time periods established by this
50 subparagraph, a corporation shall vary the times so established in this
51 clause for preparation, review, and public hearings to coordinate the
52 economic and social review process with other procedures relating to
53 review and approval or disapproval of an action. An application or
54 authorization for an action upon which a draft economic impact statement
55 is determined to be required shall not be complete until such draft
56 statement has been filed and accepted by the corporation as satisfactory
A. 7455 4
1 with respect to scope, content, and adequacy for purposes of this
2 subparagraph. Commencing upon such acceptance, the economic impact
3 statement process shall run concurrently with other procedures relating
4 to the review and approval of the action, so long as reasonable time is
5 provided for preparation, review, and public hearings with respect to
6 the draft economic impact statement.
7 (V) To the extent possible, the economic impact statement prepared
8 pursuant to clause (I) of this subparagraph, together with the comments
9 of public agencies and members of the public, shall be filed with the
10 governing body of each municipality or political subdivision thereof for
11 whose benefit such corporation is established and made available to the
12 public prior to acting on the proposal which is the subject of the
13 economic impact statement.
14 (VI) A corporation may charge a fee to an applicant to recover the
15 costs incurred in preparing or causing to be prepared or reviewing a
16 draft economic impact statement or an economic impact statement on the
17 action which the applicant requests from the corporation; provided,
18 however, that an applicant may not be charged a separate fee for both
19 the preparation and review of such statements. The technical services of
20 the corporation may be made available on a fee basis reflecting the
21 costs thereof to a requesting applicant, which fee or fees may appropri-
22 ately be charged by the corporation to the applicant under rules and
23 regulations, which the corporation shall issue for such purpose.
24 (VII) When a corporation decides to carry out or approve an action
25 which has been the subject of an economic impact statement, it shall
26 make an explicit finding that the requirements of this subparagraph have
27 been met and that, consistent with social, economic, and other essential
28 consideration, to the maximum extent practicable, adverse economic,
29 social, and community effects revealed in the economic impact statement
30 process will be minimized or avoided.
31 (3) Before any sale or lease to a local development corporation incor-
32 porated or reincorporated under this article shall be authorized, a
33 public hearing shall be held by the local legislative body, or [by the
34 board of estimate], in cities having a population of one million or
35 more, by the community board or boards or the respective borough board,
36 as the case may be, to consider the proposed sale or lease only after
37 the completion of the economic impact statement required by subparagraph
38 two-a of this paragraph. A public hearing may only be convened if two-
39 thirds of the board members are present. If not, such public hearing
40 shall not be convened and shall be rescheduled, subject to the same
41 quorum requirements.
42 § 2. Paragraph (i) of section 1411 of the not-for-profit corporation
43 law is relettered paragraph (j) and a new paragraph (i) is added to read
44 as follows:
45 (i) Municipal input.
46 (1) Board members or employees of a local development corporation must
47 not be or have, within the past five years, been: (A) an employee or an
48 owner of a firm that is a paid advisor or consultant of the local devel-
49 opment corporation, including a present or former independent auditor of
50 the local development corporation; (B) employed by a significant suppli-
51 er of the local development corporation; (C) employed by and had a five
52 percent or greater ownership interest in a supplier where sales to the
53 local development corporation represent more than one percent of the
54 sales of the supplier or more than one percent of the purchases of the
55 local development corporation; (D) a "political party chairman" as such
56 term is defined in paragraph (k) of subdivision one of section seventy-
A. 7455 5
1 three of the public officers law; or (E) a lobbyist registered under a
2 state or local law covering any jurisdiction served in whole or in part
3 by the local development corporation. In addition, at least one-third
4 of all members shall be representative of local government, organized
5 labor, or the engineering, business, or environmental communities.
6 (2) The local development corporation shall file an annual report with
7 the attorney general noting the local development corporation's finan-
8 cial activity during each year, including, but not limited to, the
9 amount and the reason for the amount and kinds of financial incentives
10 provided to any entity and any other data that the attorney general may
11 require. The report shall be submitted before February first of each
12 year. Each report shall be made available to the public in an easily
13 accessible format, including but not limited to an electronic version
14 via the world wide web.
15 (3) Any lease, sale, or other revenues collected by the corporation
16 shall be paid to the local governing body in which real property or
17 other source of revenue is located, and proportionally divided if
18 located in more than one municipality.
19 (4) The governing body of each municipality for whose benefit a corpo-
20 ration is established shall have the authority to approve or disapprove
21 any agency use of eminent domain, disposition of corporate property,
22 issuance of bonds, entrance into agreements requiring payments, or
23 entering into agreements for payments in lieu of taxes. Each such
24 governing body shall approve or disapprove any of the above corporate
25 decisions by majority vote. Where applicable in the enactment of local
26 laws, the chief executive officer shall approve or disapprove such
27 governing body's decision, subject to any applicable right to override.
28 Boards shall not violate any local zoning laws, ordinances, or regu-
29 lations or local development plans. Where applicable, the provisions of
30 this subparagraph shall apply to more than one local governing body and
31 the New York job development authority.
32 § 3. Subdivision 2 of section 856 of the general municipal law, as
33 amended by chapter 356 of the laws of 1993, is amended to read as
34 follows:
35 2. An agency shall be a corporate governmental agency, constituting a
36 public benefit corporation. Except as otherwise provided by special act
37 of the legislature, an agency shall consist of not less than three nor
38 more than seven members who shall be appointed by the chief executive
39 officer, with the advice and consent of the local governing body, of
40 each municipality and who shall serve at the pleasure of the appointing
41 authority. [Such members may include representatives of local govern-
42 ment, school boards, organized labor and business.] At least one-third
43 of all members shall be representative of local government, organized
44 labor, or the engineering, business, or environmental communities. A
45 member shall continue to hold office until his or her successor is
46 appointed and has qualified. The governing body of each municipality
47 shall designate the first [chairman] chairperson and file with the
48 secretary of state a certificate of appointment or reappointment of any
49 member. Such members shall receive no compensation for their services
50 but shall be entitled to the necessary expenses, including traveling
51 expenses, incurred in the discharge of their duties. Members must not
52 be or have, within the past five years, been:
53 (a) an employee or an owner of a firm that is a paid advisor or
54 consultant of the agency, including a present or former independent
55 auditor of the agency;
56 (b) employed by a significant supplier of the agency;
A. 7455 6
1 (c) employed by and had a five percent or greater ownership interest
2 in a supplier where sales to the agency represent more than one percent
3 of the sales of the supplier or more than one percent of the purchases
4 of the agency;
5 (d) a "political party chairman" as such term is defined in paragraph
6 (k) of subdivision one of section seventy-three of the public officers
7 law; or
8 (e) a lobbyist registered under a state or local law covering any
9 jurisdiction served in whole or in part by the agency.
10 § 4. Subdivision 15 of section 858 of the general municipal law, as
11 added by chapter 356 of the laws of 1993, is amended to read as follows:
12 (15) To enter into agreements requiring payments in lieu of taxes.
13 Such agreements shall be in writing and in addition to other terms shall
14 contain: the amount due annually to each affected tax jurisdiction (or
15 a formula by which the amount due can be calculated), the name and
16 address of the person, office or agency to which payment shall be deliv-
17 ered, the date on which payment shall be made, and the date on which
18 payment shall be considered delinquent if not paid. Unless otherwise
19 agreed by the affected tax jurisdictions, any such agreement shall
20 provide that payments in lieu of taxes shall be allocated among affected
21 tax jurisdictions in proportion to the amount of real property tax and
22 other taxes which would have been received by each affected tax juris-
23 diction had the project not been tax exempt due to the status of the
24 agency involved in the project. A copy of any such agreement shall be
25 delivered to each affected tax jurisdiction within fifteen days of sign-
26 ing the agreement. In the absence of any such written agreement,
27 payments in lieu of taxes made by an agency shall be allocated in the
28 same proportions as they had been prior to January first, nineteen
29 hundred ninety-three for so long as the agency's activities render a
30 project non-taxable by affected tax jurisdictions. Standard tax
31 exemption policies established in law or by agencies shall be sent annu-
32 ally to chief executives and all members of governing boards of all
33 affected tax jurisdictions. Any changes to the standard tax exemption
34 policies shall also be sent to chief executives and all members of
35 governing boards of affected tax jurisdictions. Standard tax exemption
36 policies shall also be made available to the public and posted on the
37 agency's website. Every agency shall be required to maintain, and make
38 available to all local elected officials and the public, a current sche-
39 dule of all PILOT payments due each year and the amount of each payment
40 allocable to each affected tax jurisdiction on whose behalf the PILOT is
41 being collected. All agencies shall maintain, and make readily avail-
42 able to all local elected officials and the public, current schedules of
43 project owners who are in arrears in the making of required PILOT
44 payments, the amounts involved, and the time periods involved. Every
45 agency must ensure that all PILOT payments are promptly received and
46 fully transmitted to the treasuries of the affected tax jurisdictions on
47 whose behalf those PILOT payments were collected;
48 § 5. The general municipal law is amended by adding a new section
49 858-c to read as follows:
50 § 858-c. Municipal input. 1. The governing body of each municipality
51 for whose benefit an agency is established shall have the authority to
52 approve or disapprove any agency use of eminent domain, disposition of
53 agency property, issuance of bonds, entrance into agreements requiring
54 payments, or entering into agreements for payments in lieu of taxes.
55 Each such governing body shall approve or disapprove any of the above
56 agency decisions by majority vote. Where applicable in the enactment of
A. 7455 7
1 local laws, the chief executive officer shall approve or disapprove such
2 governing body's decision, subject to any applicable right to override.
3 2. Agency boards shall not violate any local zoning laws, ordinances,
4 or regulations or local development plans.
5 § 6. Paragraphs (a) and (b) of subdivision 1 of section 859 of the
6 general municipal law, paragraph (a) as added by chapter 692 of the laws
7 of 1989 and paragraph (b) as amended by chapter 357 of the laws of 1993,
8 are amended to read as follows:
9 (a) Each agency shall maintain books and records in such form as may
10 be prescribed by the state comptroller. The comptroller shall prescribe
11 rules on standardizing the calculation of tax benefits.
12 (b) Within ninety days following the close of its fiscal year, each
13 agency or authority shall prepare a financial statement for that fiscal
14 year in such form as may be prescribed by the state comptroller. Such
15 statement shall be audited within such ninety day period by an independ-
16 ent certified public accountant in accordance with government accounting
17 standards established by the United States general accounting office.
18 The audited financial statement shall include supplemental schedules
19 listing all straight-lease transactions and bonds and notes issued,
20 outstanding or retired during the applicable accounting period whether
21 or not such bonds, notes or transactions are considered obligations of
22 the agency, and information on PILOTs. For each issue of bonds or notes
23 such schedules shall provide the name of each project financed with
24 proceeds of each issue, and whether the project occupant is a not-for-
25 profit corporation, the name and address of each owner of each project,
26 the address of each project, the estimated amount of tax exemptions
27 authorized for each project, the purpose for which each bond or note was
28 issued, date of issue, interest rate at issuance and if variable the
29 range of interest rates applicable, maturity date, federal tax status of
30 each issue, and an estimate of the number of jobs created and retained
31 by each project. For each straight-lease transaction, such schedules
32 shall provide the name of each project, and whether the project occupant
33 is a not-for-profit corporation, the name and address of each owner of
34 each project, the estimated amount of tax exemptions authorized for each
35 project, the purpose for which each transaction was made, the method of
36 financial assistance utilized by the project, other than the tax
37 exemptions claimed by the project and an estimate of the number of jobs
38 created and retained by each project.
39 § 7. Section 859-a of the general municipal law, as added by chapter
40 356 of the laws of 1993, and subdivisions 4, 5 and 6 as added by chapter
41 563 of the laws of 2015, is amended to read as follows:
42 § 859-a. Additional prerequisites to the provisions of financial
43 assistance, economic impact statements and public hearings. Prior to
44 providing any financial assistance of more than one hundred thousand
45 dollars to any project, the agency must comply with the following
46 prerequisites:
47 1. The agency must adopt a resolution describing the project and the
48 financial assistance that the agency is contemplating with respect to
49 such project. Agencies must maintain a list of all pending projects
50 about which they have been contacted, and make such lists available for
51 public inspection, including but not limited to publishing the lists on
52 the agency's website. If any person requests more information about a
53 particular project, the agency shall provide such information as expe-
54 ditiously as possible. Such assistance shall be consistent with the
55 uniform tax exemption policy adopted by the agency pursuant to subdivi-
56 sion four of section eight hundred seventy-four of this [chapter] title,
A. 7455 8
1 unless the agency has followed the procedures for deviation from such
2 policy specified in paragraph (b) of such subdivision. Such assistance
3 shall also be consistent with environmental protection, such as open
4 space protection, that will promote new development patterns in order to
5 take advantage of resources and opportunities, such as existing public
6 sewer and water infrastructure, without compromising the needs of future
7 generations; and labor protection, including all federal, state, and
8 local labor laws, rules, or regulations. The agency shall not grant or
9 appropriate assistance to any entity that has committed violations of
10 any federal, state, or local laws.
11 2. The agency shall prepare (where the applicant does not prepare the
12 economic impact statement), or cause to be prepared by contract or
13 otherwise, an economic impact statement on any action that it proposes
14 or approves which may have a significant effect on the affected local
15 economy and local community. The agency shall use all practicable means
16 to realize the policies and goals set forth in this article, and shall
17 act and choose alternatives which, consistent with social, economic, and
18 other essential considerations, to the maximum extent practicable, mini-
19 mize or avoid adverse economic effects, including effects revealed in
20 the economic impact statement process. Such a statement shall include a
21 detailed statement setting forth the following:
22 (a) a description of the proposed action and its economic and social
23 setting;
24 (b) the economic and social impact of the proposed action, including
25 short-term and long-term effects, especially to the affected community;
26 (c) any adverse economic effects which cannot be avoided should the
27 proposal be implemented;
28 (d) alternatives to the proposed action;
29 (e) any irreversible and irretrievable commitments and social
30 resources which would be involved in the proposed action, should it be
31 implemented;
32 (f) mitigation measures proposed to minimize the economic, social or
33 other essential impacts; and
34 (g) the growth-inducing aspects of the proposed action, where applica-
35 ble and significant.
36 Such a statement shall also include copies or a summary of the
37 substantive comments received by the agency pursuant to subdivision six
38 of this section, and the agency response to such comments. The purpose
39 of an economic impact statement is to provide detailed information about
40 the effect which a proposed action is likely to have on the economy,
41 employment conditions, and social characteristics of a community, to
42 list ways in which any adverse effects of such an action might be mini-
43 mized, and to suggest alternatives to such an action so as to form the
44 basis for a decision as to whether or not to undertake or approve such
45 action. Such statement shall be clearly written in a concise manner
46 capable of being read and understood by the public, shall deal with the
47 specific significant economic impacts which can be reasonably antic-
48 ipated, and shall not contain more detail than is appropriate, consider-
49 ing the nature and magnitude of the proposed action and the significance
50 of its potential impacts.
51 3. The agency may require an applicant to submit an economic report to
52 assist the agency in carrying out its responsibilities, including the
53 initial determination and, (where the applicant does not prepare the
54 economic impact statement), the preparation of an economic impact state-
55 ment under this article. The agency may request such other information
56 from an applicant necessary for the review of economic and social
A. 7455 9
1 impacts. Notwithstanding any use of outside resources or work, agencies
2 shall make their own independent judgment of the scope, contents, and
3 adequacy of an economic impact statement.
4 4. (a) As early as possible in the formulation of a proposal for an
5 action, the agency shall make an initial determination as to whether or
6 not an economic impact statement need be prepared for the action. With
7 respect to actions involving the issuance to an applicant of a permit or
8 other entitlement, the agency shall notify the applicant in writing of
9 its initial determination, specifying therein the basis for such deter-
10 mination. Notice of the initial determination, along with appropriate
11 supporting findings on agency actions, shall be kept on file in the main
12 office of the agency for public inspection. If the agency determines
13 that such statement is required, the agency or the applicant, at the
14 applicant's option, shall prepare or cause to be prepared a draft
15 economic impact statement. If the applicant does not exercise the
16 option to prepare such statement, the agency shall prepare it, cause it
17 to be prepared, or terminate its review of the proposed action. Such
18 statement shall describe the proposed action and reasonable alternatives
19 to the action, and briefly discuss, on the basis of information then
20 available, the remaining items required to be submitted by subdivision
21 two of this section. The purpose of a draft economic statement is to
22 relate economic and social considerations to the inception of the plan-
23 ning process, to inform the public and other public agencies as early as
24 possible about proposed actions that may significantly affect the quali-
25 ty of the economic and social conditions, and to solicit comments which
26 will assist the agency in the decision making process in determining the
27 economic and social consequences of the proposed action. The draft
28 statement shall resemble in form and content the economic impact state-
29 ment to be prepared after comments have been received and considered
30 pursuant to subdivision two of this section; however, that the length
31 and detail of the draft economic statement will necessarily reflect the
32 preliminary nature of the proposal and the early stage at which it is
33 prepared;
34 (b) The draft statement shall be filed with the appropriate governing
35 body of each municipality for whose benefit such agency is established.
36 5. (a) After the filing of a draft economic impact statement, the
37 agency shall determine whether or not to conduct a public hearing on the
38 economic impact of the proposed action. Such public hearing shall be
39 held in a city, town, or village where the project is proposed to be
40 located. The agency must give at least thirty days' published notice of
41 such public hearing and shall, at the same time, provide notice of such
42 hearing to the chief executive officer of each affected tax jurisdiction
43 within which the project is proposed to be located. The notice of hear-
44 ing must state the time and place of the hearing, contain a general,
45 functional description of the project, describe the prospective location
46 of the project, identify the initial owner, operator, or manager of the
47 project, generally describe the financial assistance contemplated by the
48 agency with respect to the project, and provide an opportunity for the
49 public to review the project application, which shall include an analy-
50 sis of the costs and benefits of the proposed project. The notice of
51 hearing must be published in the state register and the website of the
52 agency.
53 (b) If the agency determines to hold such a hearing, it shall commence
54 the hearing within sixty days of the filing and, unless the proposed
55 action is withdrawn from consideration, shall prepare the economic
56 impact statement within forty-five days after the close of the hearing,
A. 7455 10
1 except as otherwise provided. The need for such a hearing shall be
2 determined in accordance with procedures adopted by the agency pursuant
3 to section eight hundred fifty-eight of this title. If no hearing is
4 held, the agency shall prepare and make available the economic impact
5 statement within sixty days after the filing of the draft, except as
6 otherwise provided.
7 (c) Notwithstanding the specified time periods established by this
8 article, an agency shall vary the times so established herein for prepa-
9 ration, review and public hearings to coordinate the economic and social
10 review process with other procedures relating to review and approval of
11 an action. An application or authorization for an action upon which a
12 draft economic impact statement is determined to be required shall not
13 be complete until such draft statement has been filed and accepted by
14 the agency as satisfactory with respect to scope, content, and adequacy
15 for purposes of subdivision four of this section. Commencing upon such
16 acceptance, the economic impact statement process shall run concurrently
17 with other procedures relating to the review and approval of the action,
18 so long as reasonable time is provided for preparation, review, and
19 public hearings with respect to the draft economic impact statement.
20 6. To the extent possible, the economic impact statement prepared
21 pursuant to subdivision two of this section, together with the comments
22 of public agencies and members of the public, shall be filed with the
23 governing body of each municipality for whose benefit such agency is
24 established and made available to the public prior to acting on the
25 proposal which is the subject of the economic impact statement.
26 7. An agency may charge a fee to an applicant to recover the costs
27 incurred in preparing or causing to be prepared or reviewing a draft
28 economic impact statement or an economic impact statement on the action
29 which the applicant requests from the agency; provided, however, that an
30 applicant may not be charged a separate fee for both the preparation and
31 review of such statements. The technical services of the agency may be
32 made available on a fee basis reflecting the costs thereof to a request-
33 ing agency, which fee or fees may appropriately be charged by the agency
34 to the applicant under rules and regulations to be issued by the agency
35 for such purpose under section eight hundred fifty-eight of this title.
36 8. When an agency decides to carry out or approve an action which has
37 been the subject of an economic impact statement, it shall make an
38 explicit finding that the requirements of this section have been met and
39 that, consistent with social, economic, and other essential consider-
40 ations, to the maximum extent practicable, adverse economic, social, and
41 community effects revealed in the economic impact statement process will
42 be minimized or avoided.
43 9. The agency [must] shall hold a public hearing with respect to the
44 project and the proposed financial assistance being contemplated by the
45 agency after the completion of the final economic impact statement.
46 [Said] Such public hearing shall be held in a city, town, or village
47 where the project [proposes] is proposed to [locate] be located. At
48 [said] such public hearing, interested parties shall be provided reason-
49 able opportunity, both orally and in writing, to present their views
50 with respect to the project and the final economic impact statement. A
51 public hearing may only be convened if two-thirds of the board members
52 are present. If not, such public hearing shall not be convened and shall
53 be rescheduled, subject to the same quorum requirements.
54 [3.] 10. The agency must give at least ten days published notice of
55 [said] such public hearing and shall, at the same time, provide notice
56 of such hearing to the chief executive officer of each affected tax
A. 7455 11
1 jurisdiction within which the project is located. The notice of hearing
2 must state the time and place of the hearing, contain a general, func-
3 tional description of the project, describe the prospective location of
4 the project, identify the initial owner, operator, or manager of the
5 project, and generally describe the financial assistance contemplated by
6 the agency with respect to the project. The notice of hearing must be
7 published in the state register and the website of the agency. Such
8 assistance shall also be consistent with environmental protection, such
9 as open space protection, that will promote new development patterns in
10 order to take advantage of resources and opportunities, such as existing
11 public sewer and water infrastructure, without compromising the needs of
12 future generations; and labor protection, including all federal, state,
13 and local labor laws, rules or regulations. The agency shall not grant
14 or appropriate assistance to any entity that has committed violations of
15 any federal, state, or local laws.
16 [4.] 11. Each agency shall develop a standard application form, which
17 shall be used by the agency to accept requests for financial assistance
18 from all individuals, firms, companies, developers or other entities or
19 organizations. The standard application form shall be submitted by or on
20 behalf of the applicant, and subscribed and affirmed under the penalties
21 of perjury by the applicant, or on behalf of the applicant by the chief
22 executive officer or such other individual that is duly authorized to
23 bind the applicant, as true, accurate and complete to the best of his or
24 her knowledge. The standard application form shall include the follow-
25 ing, and may include such other supplemental information as determined
26 to be necessary and appropriate by the agency, including supporting
27 documents and information provided by or on behalf of the applicant:
28 (a) the name and address of the project applicant;
29 (b) a description of the proposed project for which financial assist-
30 ance is requested, including the type of project, proposed location and
31 purpose of the project;
32 (c) the amount and type of financial assistance being requested,
33 including the estimated value of each type of tax exemption sought to be
34 claimed by reason of agency involvement in the project;
35 (d) a statement that there is a likelihood that the project would not
36 be undertaken but for the financial assistance provided by the agency
37 or, if the project could be undertaken without financial assistance
38 provided by the agency, a statement indicating why the project should be
39 undertaken by the agency;
40 (e) an estimate of capital costs of the project, including all costs
41 of real property and equipment acquisition and building construction or
42 reconstruction, financed from private sector sources, an estimate of the
43 percentage of project costs financed from public sector sources, and an
44 estimate of both the amount to be invested by the applicant and the
45 amount to be borrowed to finance the project.
46 (f) the projected number of full time equivalent jobs that would be
47 retained and that would be created if the request for financial assist-
48 ance is granted, the projected timeframe for the creation of new jobs,
49 the estimated salary and fringe benefit averages or ranges for catego-
50 ries of the jobs that would be retained or created if the request for
51 financial assistance is granted, and an estimate of the number of resi-
52 dents of the economic development region as established pursuant to
53 section two hundred thirty of the economic development law or the labor
54 market area as defined by the agency, in which the project is located
55 that would fill such jobs. The labor market area defined by the agency
A. 7455 12
1 for this purpose may include no more than six contiguous counties in the
2 state, including the county in which the project is to be located;
3 (g) a statement to the effect that the provisions of subdivision one
4 of section eight hundred sixty-two of this [chapter] title will not be
5 violated if financial assistance is provided for the proposed project;
6 (h) a statement that the owner, occupant or operator receiving finan-
7 cial assistance is in substantial compliance with applicable local,
8 state and federal tax, worker protection and environmental laws, rules
9 and regulations; and
10 (i) a statement acknowledging that the submission of any knowingly
11 false or knowingly misleading information may lead to the immediate
12 termination of any financial assistance and the reimbursement of an
13 amount equal to all or part of any tax exemptions claimed by reason of
14 agency involvement in the project.
15 [5.] 12. Each agency shall develop, and adopt by resolution, uniform
16 criteria for the evaluation and selection for each category of projects
17 for which financial assistance will be provided. At a minimum, the
18 criteria shall require that, for each project, the following must occur
19 prior to the approval of the provision of financial assistance:
20 (a) an assessment by the agency of all material information included
21 in connection with the application for financial assistance, as neces-
22 sary to afford a reasonable basis for the decision by the agency to
23 provide financial assistance for the project;
24 (b) a written cost-benefit analysis by the agency that identifies the
25 extent to which a project will create or retain permanent, private
26 sector jobs; the estimated value of any tax exemptions to be provided;
27 the amount of private sector investment generated or likely to be gener-
28 ated by the proposed project; the likelihood of accomplishing the
29 proposed project in a timely fashion; and the extent to which the
30 proposed project will provide additional sources of revenue for munici-
31 palities and school districts; and any other public benefits that might
32 occur as a result of the project;
33 (c) a statement by the applicant that the project, as of the date of
34 the application, is in substantial compliance with all provisions of
35 this article including, but not limited to, the provisions of this
36 section and subdivision one of section eight hundred sixty-two of this
37 [chapter] title; and
38 (d) if the project involves the removal or abandonment of a facility
39 or plant within the state, notification by the agency to the chief exec-
40 utive officer or officers of the municipality or municipalities in which
41 the facility or plant was located.
42 [6.] 13. Each agency shall develop a uniform agency project agreement
43 that sets forth terms and conditions under which financial assistance
44 shall be provided. The uniform agency project agreement shall be used by
45 the agency and no financial assistance shall be provided in the absence
46 of the execution of such an agreement. The uniform agency project agree-
47 ment shall, at a minimum:
48 (a) describe the project and the financial assistance, including the
49 amount and type, to be provided, and the agency purpose to be achieved;
50 (b) require each project owner, occupant or operator receiving finan-
51 cial benefits to provide annually a certified statement and documenta-
52 tion: (i) enumerating the full time equivalent jobs retained and the
53 full time equivalent jobs created as a result of the financial assist-
54 ance, by category, including full time equivalent independent contrac-
55 tors or employees of independent contractors that work at the project
56 location, and (ii) indicating that the salary and fringe benefit aver-
A. 7455 13
1 ages or ranges for categories of jobs retained and jobs created that was
2 provided in the application is still accurate and if it is not still
3 accurate, providing a revised list of salary and fringe benefit averages
4 or ranges for categories of jobs retained and jobs created.
5 (c) indicate the dates when PILOT payments are to be made and provide
6 an estimate of the amounts for each affected tax jurisdiction of any
7 payments in lieu of taxes that are included as part of the transaction,
8 or formula or formulas by which those amounts may be calculated. In lieu
9 of providing such information, a copy of an executed payment in lieu of
10 tax agreement that contains the same information may be attached to the
11 uniform agency project agreement;
12 [(e)] (d) provide for the suspension or discontinuance of financial
13 assistance, or for the modification of any payment in lieu of tax agree-
14 ment to require increased payments, in accordance with policies devel-
15 oped by the agency pursuant to section eight hundred seventy-four of
16 this title;
17 [(f)] (e) provide for the return of all or a part of the financial
18 assistance provided for the project, including all or part of the amount
19 of any tax exemptions, which shall be redistributed to the appropriate
20 affected tax jurisdiction, as provided for in policies developed by the
21 agency pursuant to section eight hundred seventy-four of this title,
22 unless agreed to otherwise by any local taxing jurisdiction or jurisdic-
23 tions; and
24 [(g)] (f) provide that the owner, occupant or operator receiving
25 financial assistance shall certify, under penalty of perjury, that it is
26 in substantial compliance with all local, state and federal tax, worker
27 protection and environmental laws, rules and regulations.
28 § 8. Section 860 of the general municipal law, as added by chapter
29 1030 of the laws of 1969, is amended to read as follows:
30 § 860. Moneys of the agency. The agency shall have power to contract
31 with the holders of any of its bonds or notes as to the custody,
32 collection, securing, investment and payment of any moneys of the agency
33 or any moneys held in trust or otherwise for the payment of bonds or
34 notes or in any way to secure bonds or notes and to carry out any such
35 contract. Moneys held in trust or otherwise for the payment of bonds or
36 notes or in any way to secure bonds or notes and deposits of such moneys
37 may be secured in the same manner as moneys of the agency, and all banks
38 and trust companies are authorized to give such security for such depos-
39 its. Any lease payments, revenues, or other earnings of the agency
40 shall be paid to the local governing body of the municipality for whose
41 benefit such agency is established.
42 § 9. Section 882 of the general municipal law, as amended by chapter
43 373 of the laws of 2012, is amended and a new section 882-a is added to
44 read as follows:
45 § 882. Termination of the agency. Whenever all of the bonds or notes
46 issued by the agency shall have been redeemed or cancelled, and all
47 straight-lease transactions have been terminated, the agency shall cease
48 to exist and all rights, titles, and interest and all obligations and
49 liabilities thereof vested in or possessed by the agency shall thereupon
50 vest in and be possessed by the municipality. After October first, two
51 thousand twenty-one, non-county industrial development agencies created
52 under title two of this article shall not be able to issue any further
53 bonds or notes.
54 § 882-a. Prohibition of local industrial development agencies. No
55 further industrial development agencies may be created unless they are a
56 county-wide industrial development agency.
A. 7455 14
1 § 10. The general municipal law is amended by adding two new sections
2 885 and 885-a to read as follows:
3 § 885. Prevailing wage. Whenever a recipient of industrial develop-
4 ment agency funds, financial assistance, or other benefit enters into
5 any contract, subcontract, lease, grant, bond, covenant or other agree-
6 ment for or in connection with any construction, demolition, recon-
7 struction, excavation, rehabilitation, repair, renovation, alteration,
8 or improvement project, such project shall be deemed to be a public
9 works project for the purposes of article eight of the labor law, and
10 all of the provisions of article eight of the labor law shall be appli-
11 cable to all the work involved in the construction, demolition, recon-
12 struction, excavation, rehabilitation, repair, renovation, alteration,
13 or improvement of such project. Funds, financial assistance, or any
14 other benefits provided pursuant to this article shall not be utilized
15 for or in connection with the construction, demolition, reconstruction,
16 excavation, rehabilitation, repair, renovation, alteration, or improve-
17 ment of any project to which the provisions of article eight of the
18 labor law are not applicable.
19 § 885-a. Recapture. If a recipient entity of agency assistance does
20 not abide by any provision of this article or requirement made applica-
21 ble pursuant to the authority of this article, it shall pay back to the
22 agency that fraction of developmental assistance that accrued to its
23 benefit for the calendar year in which the benefit occurred, plus inter-
24 est at a rate determined by the granting agency. For one-time forms of
25 assistance such as grants or land price discounts, a defaulting entity
26 shall pay back to the granting agency one-fifth of the value of assist-
27 ance. Remittance of the payback by a recipient entity to a granting
28 agency shall take place within sixty calendar days of the delivery of
29 the default notice to the recipient entity.
30 § 11. This act shall take effect on the sixtieth day after it shall
31 have become a law; provided, however, that the provisions of section
32 seven of this act shall take effect immediately.
