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
________________________________________________________________________
5138
2023-2024 Regular Sessions
IN SENATE
February 23, 2023
___________
Introduced by Sens. KRUEGER, LIU -- read twice and ordered printed, and
when printed to be committed to the Committee on Corporations, Author-
ities and Commissions
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09705-01-3
S. 5138 2
1 with social, economic, environmental, labor, and other essential consid-
2 erations, to the maximum extent practicable, minimize or avoid adverse
3 economic effects, including effects revealed in the economic impact
4 statement process. Such a statement shall include a detailed statement
5 setting forth the following:
6 (A) a description of the proposed action and its economic and social
7 setting;
8 (B) the economic and social impact of the proposed action, including
9 short-term and long-term effects, especially to the affected community;
10 (C) any adverse economic effects which cannot be avoided should the
11 proposal be implemented;
12 (D) alternatives to the proposed action;
13 (E) any irreversible and irretrievable commitments and social
14 resources which would be involved in the proposed action, should it be
15 implemented;
16 (F) mitigation measures proposed to minimize the economic, social, or
17 other essential impacts; and
18 (G) the growth-inducing aspects of the proposed action, where applica-
19 ble and significant. Such a statement shall also include copies or a
20 summary of the substantive comments received by the corporation pursuant
21 to clause (IV) of this subparagraph and the corporation's response to
22 such comments. The purpose of an economic impact statement is to provide
23 detailed information about the effect which a proposed action is likely
24 to have on the economy, employment conditions, and social character-
25 istics of a community, to list ways in which any adverse effects of such
26 an action might be minimized, and to suggest alternatives to such an
27 action so as to form the basis for a decision as to whether or not to
28 undertake or approve such action. Such statement shall be clearly writ-
29 ten in a concise manner capable of being read and understood by the
30 public, shall deal with the specific, significant economic impacts which
31 can be reasonably anticipated, and shall not contain more detail than is
32 appropriate, considering the nature and magnitude of the proposed action
33 and the significance of its potential impacts.
34 (II) The corporation may require an applicant to submit an economic
35 report to assist the corporation in carrying out its responsibilities,
36 including the initial determination and, (where the applicant does not
37 prepare the economic impact statement), the preparation of an economic
38 impact statement under this subparagraph. The corporation may request
39 such other information from an applicant as it deems necessary for the
40 review of economic and social impacts. Notwithstanding any use of
41 outside resources or work, corporations shall make their own independent
42 judgment of the scope, contents, and adequacy of an economic impact
43 statement.
44 (III) (A) As early as possible in the formulation of a proposal for an
45 action, the corporation shall make an initial determination as to wheth-
46 er or not an economic impact statement need be prepared for the action.
47 With respect to actions involving the issuance to an applicant of a
48 permit or other entitlement, the corporation shall notify the applicant
49 in writing of its initial determination, specifying therein the basis
50 for such determination. Notice of the initial determination, along with
51 appropriate supporting findings on corporation actions, shall be kept on
52 file in the main office of the corporation for public inspection. If the
53 corporation determines that such statement is required, the corporation
54 or the applicant, at the applicant's option, shall prepare or cause to
55 be prepared a draft economic impact statement. If the applicant does
56 not exercise the option to prepare such statement, the corporation shall
S. 5138 3
1 prepare it, cause it to be prepared, or terminate its review of the
2 proposed action. Such statement shall describe the proposed action and
3 reasonable alternatives to the action, and briefly discuss, on the basis
4 of information then available, the remaining items required to be
5 submitted by clause (I) of this subparagraph. The purpose of a draft
6 economic statement is to relate economic and social considerations to
7 the inception of the planning process, to inform the public and other
8 public agencies as early as possible about proposed actions that may
9 significantly affect the quality of the economic and social conditions,
10 and to solicit comments which will assist the corporation in the deci-
11 sion making process in determining the economic and social consequences
12 of the proposed action. The draft statement shall resemble in form and
13 content the economic impact statement to be prepared after comments have
14 been received and considered pursuant to clause (I) of this subpara-
15 graph; provided, however, that the length and detail of the draft
16 economic statement will necessarily reflect the preliminary nature of
17 the proposal and the early stage at which it is prepared;
18 (B) The draft statement shall be filed with the appropriate governing
19 body of each municipality or political subdivision thereof for whose
20 benefit such corporation is established.
21 (IV) (A) After the filing of a draft economic impact statement, the
22 corporation shall determine whether or not to conduct a public hearing
23 on the economic impact of the proposed action. Such public hearing shall
24 be held in a city, town or village where the project is proposed to be
25 located or, in cities having a population of one million or more, in the
26 community district or districts in which such project is proposed to be
27 located or in the respective borough, if such project is proposed to be
28 located in two or more community districts. The corporation must give
29 at least thirty days' published notice of such public hearing and shall,
30 at the same time, provide notice of such hearing to the chief executive
31 officer of each affected tax jurisdiction within which the project is
32 proposed to be located. The notice of hearing must state the time and
33 place of the hearing, contain a general, functional description of the
34 project, describe the prospective location of the project, identify the
35 initial owner, operator, or manager of the project, generally describe
36 the financial assistance contemplated by the corporation with respect to
37 the project, and provide an opportunity for the public to review the
38 project application, which shall include an analysis of the costs and
39 benefits of the proposed project. The notice of hearing must be
40 published in the state register and the website of the corporation. (B)
41 If the corporation determines to hold such a hearing, it shall commence
42 the hearing within sixty days of the filing and, unless the proposed
43 action is withdrawn from consideration, shall prepare the economic
44 impact statement within forty-five days after the close of the hearing,
45 except as otherwise provided. The need for such a hearing shall be
46 determined in accordance with procedures adopted by the corporation. If
47 no hearing is held, the corporation shall prepare and make available the
48 economic impact statement within sixty days after the filing of the
49 draft, except as otherwise provided.
50 (C) Notwithstanding the specified time periods established by this
51 subparagraph, a corporation shall vary the times so established in this
52 clause for preparation, review, and public hearings to coordinate the
53 economic and social review process with other procedures relating to
54 review and approval or disapproval of an action. An application or
55 authorization for an action upon which a draft economic impact statement
56 is determined to be required shall not be complete until such draft
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1 statement has been filed and accepted by the corporation as satisfactory
2 with respect to scope, content, and adequacy for purposes of this
3 subparagraph. Commencing upon such acceptance, the economic impact
4 statement process shall run concurrently with other procedures relating
5 to the review and approval of the action, so long as reasonable time is
6 provided for preparation, review, and public hearings with respect to
7 the draft economic impact statement.
8 (V) To the extent possible, the economic impact statement prepared
9 pursuant to clause (I) of this subparagraph, together with the comments
10 of public agencies and members of the public, shall be filed with the
11 governing body of each municipality or political subdivision thereof for
12 whose benefit such corporation is established and made available to the
13 public prior to acting on the proposal which is the subject of the
14 economic impact statement.
15 (VI) A corporation may charge a fee to an applicant to recover the
16 costs incurred in preparing or causing to be prepared or reviewing a
17 draft economic impact statement or an economic impact statement on the
18 action which the applicant requests from the corporation; provided,
19 however, that an applicant may not be charged a separate fee for both
20 the preparation and review of such statements. The technical services of
21 the corporation may be made available on a fee basis reflecting the
22 costs thereof to a requesting applicant, which fee or fees may appropri-
23 ately be charged by the corporation to the applicant under rules and
24 regulations, which the corporation shall issue for such purpose.
25 (VII) When a corporation decides to carry out or approve an action
26 which has been the subject of an economic impact statement, it shall
27 make an explicit finding that the requirements of this subparagraph have
28 been met and that, consistent with social, economic, and other essential
29 consideration, to the maximum extent practicable, adverse economic,
30 social, and community effects revealed in the economic impact statement
31 process will be minimized or avoided.
32 (3) Before any sale or lease to a local development corporation incor-
33 porated or reincorporated under this article shall be authorized, a
34 public hearing shall be held by the local legislative body, or [by the
35 board of estimate], in cities having a population of one million or
36 more, by the community board or boards or the respective borough board,
37 as the case may be, to consider the proposed sale or lease only after
38 the completion of the economic impact statement required by subparagraph
39 two-a of this paragraph. A public hearing may only be convened if two-
40 thirds of the board members are present. If not, such public hearing
41 shall not be convened and shall be rescheduled, subject to the same
42 quorum requirements.
43 § 2. Paragraph (i) of section 1411 of the not-for-profit corporation
44 law is relettered paragraph (j) and a new paragraph (i) is added to read
45 as follows:
46 (i) Municipal input.
47 (1) Board members or employees of a local development corporation must
48 not be or have, within the past five years, been: (A) an employee or an
49 owner of a firm that is a paid advisor or consultant of the local devel-
50 opment corporation, including a present or former independent auditor of
51 the local development corporation; (B) employed by a significant suppli-
52 er of the local development corporation; (C) employed by and had a five
53 percent or greater ownership interest in a supplier where sales to the
54 local development corporation represent more than one percent of the
55 sales of the supplier or more than one percent of the purchases of the
56 local development corporation; (D) a "political party chairman" as such
S. 5138 5
1 term is defined in paragraph (k) of subdivision one of section seventy-
2 three of the public officers law; or (E) a lobbyist registered under a
3 state or local law covering any jurisdiction served in whole or in part
4 by the local development corporation. In addition, at least one-third
5 of all members shall be representative of local government, organized
6 labor, or the engineering, business, or environmental communities.
7 (2) The local development corporation shall file an annual report with
8 the attorney general noting the local development corporation's finan-
9 cial activity during each year, including, but not limited to, the
10 amount and the reason for the amount and kinds of financial incentives
11 provided to any entity and any other data that the attorney general may
12 require. The report shall be submitted before February first of each
13 year. Each report shall be made available to the public in an easily
14 accessible format, including but not limited to an electronic version
15 via the world wide web.
16 (3) Any lease, sale, or other revenues collected by the corporation
17 shall be paid to the local governing body in which real property or
18 other source of revenue is located, and proportionally divided if
19 located in more than one municipality.
20 (4) The governing body of each municipality for whose benefit a corpo-
21 ration is established shall have the authority to approve or disapprove
22 any agency use of eminent domain, disposition of corporate property,
23 issuance of bonds, entrance into agreements requiring payments, or
24 entering into agreements for payments in lieu of taxes. Each such
25 governing body shall approve or disapprove any of the above corporate
26 decisions by majority vote. Where applicable in the enactment of local
27 laws, the chief executive officer shall approve or disapprove such
28 governing body's decision, subject to any applicable right to override.
29 Boards shall not violate any local zoning laws, ordinances, or regu-
30 lations or local development plans. Where applicable, the provisions of
31 this subparagraph shall apply to more than one local governing body and
32 the New York job development authority.
33 § 3. Subdivision 2 of section 856 of the general municipal law, as
34 amended by chapter 356 of the laws of 1993, is amended to read as
35 follows:
36 2. An agency shall be a corporate governmental agency, constituting a
37 public benefit corporation. Except as otherwise provided by special act
38 of the legislature, an agency shall consist of not less than three nor
39 more than seven members who shall be appointed by the chief executive
40 officer, with the advice and consent of the local governing body, of
41 each municipality and who shall serve at the pleasure of the appointing
42 authority. [Such members may include representatives of local govern-
43 ment, school boards, organized labor and business.] At least one-third
44 of all members shall be representative of local government, organized
45 labor, or the engineering, business, or environmental communities. A
46 member shall continue to hold office until his or her successor is
47 appointed and has qualified. The governing body of each municipality
48 shall designate the first [chairman] chairperson and file with the
49 secretary of state a certificate of appointment or reappointment of any
50 member. Such members shall receive no compensation for their services
51 but shall be entitled to the necessary expenses, including traveling
52 expenses, incurred in the discharge of their duties. Members must not
53 be or have, within the past five years, been:
54 (a) an employee or an owner of a firm that is a paid advisor or
55 consultant of the agency, including a present or former independent
56 auditor of the agency;
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1 (b) employed by a significant supplier of the agency;
2 (c) employed by and had a five percent or greater ownership interest
3 in a supplier where sales to the agency represent more than one percent
4 of the sales of the supplier or more than one percent of the purchases
5 of the agency;
6 (d) a "political party chairman" as such term is defined in paragraph
7 (k) of subdivision one of section seventy-three of the public officers
8 law; or
9 (e) a lobbyist registered under a state or local law covering any
10 jurisdiction served in whole or in part by the agency.
11 § 4. Subdivision 15 of section 858 of the general municipal law, as
12 amended by chapter 708 of the laws of 2022, is amended to read as
13 follows:
14 (15) To enter into agreements requiring payments in lieu of taxes.
15 Such agreements shall be in writing and in addition to other terms shall
16 contain: the amount due annually to each affected tax jurisdiction (or a
17 formula by which the amount due can be calculated), the name and address
18 of the person, office or agency to which payment shall be delivered, the
19 date on which payment shall be made, and the date on which payment shall
20 be considered delinquent if not paid. Unless otherwise agreed by the
21 affected tax jurisdictions, any such agreement shall provide that
22 payments in lieu of taxes shall be allocated among affected tax juris-
23 dictions in proportion to the amount of real property tax and other
24 taxes which would have been received by each affected tax jurisdiction
25 had the project not been tax exempt due to the status of the agency
26 involved in the project. A copy of any such agreement shall be delivered
27 to each affected tax jurisdiction within fifteen days of signing the
28 agreement. In the absence of any such written agreement, payments in
29 lieu of taxes made by an agency shall be allocated in the same
30 proportions as they had been prior to January first, nineteen hundred
31 ninety-three for so long as the agency's activities render a project
32 non-taxable by affected tax jurisdictions. A notification of the expira-
33 tion of such agreement shall be delivered to the affected tax jurisdic-
34 tion two years prior to the expiration of such agreement and immediately
35 upon early termination of an agreement. Standard tax exemption policies
36 established in law or by agencies shall be sent annually to chief execu-
37 tives and all members of governing boards of all affected tax jurisdic-
38 tions. Any changes to the standard tax exemption policies shall also be
39 sent to chief executives and all members of governing boards of affected
40 tax jurisdictions. Standard tax exemption policies shall also be made
41 available to the public and posted on the agency's website. Every agency
42 shall be required to maintain, and make available to all local elected
43 officials and the public, a current schedule of all PILOT payments due
44 each year and the amount of each payment allocable to each affected tax
45 jurisdiction on whose behalf the PILOT is being collected. All agencies
46 shall maintain, and make readily available to all local elected offi-
47 cials and the public, current schedules of project owners who are in
48 arrears in the making of required PILOT payments, the amounts involved,
49 and the time periods involved. Every agency must ensure that all PILOT
50 payments are promptly received and fully transmitted to the treasuries
51 of the affected tax jurisdictions on whose behalf those PILOT payments
52 were collected;
53 § 5. The general municipal law is amended by adding a new section
54 858-c to read as follows:
55 § 858-c. Municipal input. 1. The governing body of each municipality
56 for whose benefit an agency is established shall have the authority to
S. 5138 7
1 approve or disapprove any agency use of eminent domain, disposition of
2 agency property, issuance of bonds, entrance into agreements requiring
3 payments, or entering into agreements for payments in lieu of taxes.
4 Each such governing body shall approve or disapprove any of the above
5 agency decisions by majority vote. Where applicable in the enactment of
6 local laws, the chief executive officer shall approve or disapprove such
7 governing body's decision, subject to any applicable right to override.
8 2. Agency boards shall not violate any local zoning laws, ordinances,
9 or regulations or local development plans.
10 § 6. Paragraphs (a) and (b) of subdivision 1 of section 859 of the
11 general municipal law, paragraph (a) as added by chapter 692 of the laws
12 of 1989 and paragraph (b) as amended by chapter 357 of the laws of 1993,
13 are amended to read as follows:
14 (a) Each agency shall maintain books and records in such form as may
15 be prescribed by the state comptroller. The comptroller shall prescribe
16 rules on standardizing the calculation of tax benefits.
17 (b) Within ninety days following the close of its fiscal year, each
18 agency or authority shall prepare a financial statement for that fiscal
19 year in such form as may be prescribed by the state comptroller. Such
20 statement shall be audited within such ninety day period by an independ-
21 ent certified public accountant in accordance with government accounting
22 standards established by the United States general accounting office.
23 The audited financial statement shall include supplemental schedules
24 listing all straight-lease transactions and bonds and notes issued,
25 outstanding or retired during the applicable accounting period whether
26 or not such bonds, notes or transactions are considered obligations of
27 the agency, and information on PILOTs. For each issue of bonds or notes
28 such schedules shall provide the name of each project financed with
29 proceeds of each issue, and whether the project occupant is a not-for-
30 profit corporation, the name and address of each owner of each project,
31 the address of each project, the estimated amount of tax exemptions
32 authorized for each project, the purpose for which each bond or note was
33 issued, date of issue, interest rate at issuance and if variable the
34 range of interest rates applicable, maturity date, federal tax status of
35 each issue, and an estimate of the number of jobs created and retained
36 by each project. For each straight-lease transaction, such schedules
37 shall provide the name of each project, and whether the project occupant
38 is a not-for-profit corporation, the name and address of each owner of
39 each project, the estimated amount of tax exemptions authorized for each
40 project, the purpose for which each transaction was made, the method of
41 financial assistance utilized by the project, other than the tax
42 exemptions claimed by the project and an estimate of the number of jobs
43 created and retained by each project.
44 § 7. Section 859-a of the general municipal law, as added by chapter
45 356 of the laws of 1993, subdivision 1-a as added by chapter 766 of the
46 laws of 2022, subdivisions 4, 5 and 6 as added by chapter 563 of the
47 laws of 2015, and paragraph (b) of subdivison 5 as amended by section 7
48 of part X of chapter 59 of the laws of 2021, is amended to read as
49 follows:
50 § 859-a. Additional prerequisites to the provisions of financial
51 assistance, economic impact statements and public hearings. Prior to
52 providing any financial assistance of more than one hundred thousand
53 dollars to any project, the agency must comply with the following
54 prerequisites:
55 1. The agency must adopt a resolution describing the project and the
56 financial assistance that the agency is contemplating with respect to
S. 5138 8
1 such project. Agencies must maintain a list of all pending projects
2 about which they have been contacted, and make such lists available for
3 public inspection, including but not limited to publishing the lists on
4 the agency's website. If any person requests more information about a
5 particular project, the agency shall provide such information as expe-
6 ditiously as possible. Such assistance shall be consistent with the
7 uniform tax exemption policy adopted by the agency pursuant to subdivi-
8 sion four of section eight hundred seventy-four of this [chapter] title,
9 unless the agency has followed the procedures for deviation from such
10 policy specified in paragraph (b) of such subdivision. Such assistance
11 shall also be consistent with environmental protection, such as open
12 space protection, that will promote new development patterns in order to
13 take advantage of resources and opportunities, such as existing public
14 sewer and water infrastructure, without compromising the needs of future
15 generations; and labor protection, including all federal, state, and
16 local labor laws, rules, or regulations. The agency shall not grant or
17 appropriate assistance to any entity that has committed violations of
18 any federal, state, or local laws.
19 1-a. The agency shall deliver a copy of the resolution adopted pursu-
20 ant to subdivision one of this section by certified mail, return receipt
21 requested, to the chief executive officer of each affected local taxing
22 jurisdiction. When the affected local taxing jurisdiction is a school
23 district, the agency shall deliver a copy of such resolution by certi-
24 fied mail, return receipt requested, to the school board and district
25 superintendent of each affected school district.
26 2. The agency shall prepare (where the applicant does not prepare the
27 economic impact statement), or cause to be prepared by contract or
28 otherwise, an economic impact statement on any action that it proposes
29 or approves which may have a significant effect on the affected local
30 economy and local community. The agency shall use all practicable means
31 to realize the policies and goals set forth in this article, and shall
32 act and choose alternatives which, consistent with social, economic, and
33 other essential considerations, to the maximum extent practicable, mini-
34 mize or avoid adverse economic effects, including effects revealed in
35 the economic impact statement process. Such a statement shall include a
36 detailed statement setting forth the following:
37 (a) a description of the proposed action and its economic and social
38 setting;
39 (b) the economic and social impact of the proposed action, including
40 short-term and long-term effects, especially to the affected community;
41 (c) any adverse economic effects which cannot be avoided should the
42 proposal be implemented;
43 (d) alternatives to the proposed action;
44 (e) any irreversible and irretrievable commitments and social
45 resources which would be involved in the proposed action, should it be
46 implemented;
47 (f) mitigation measures proposed to minimize the economic, social or
48 other essential impacts; and
49 (g) the growth-inducing aspects of the proposed action, where applica-
50 ble and significant.
51 Such a statement shall also include copies or a summary of the
52 substantive comments received by the agency pursuant to subdivision six
53 of this section, and the agency response to such comments. The purpose
54 of an economic impact statement is to provide detailed information about
55 the effect which a proposed action is likely to have on the economy,
56 employment conditions, and social characteristics of a community, to
S. 5138 9
1 list ways in which any adverse effects of such an action might be mini-
2 mized, and to suggest alternatives to such an action so as to form the
3 basis for a decision as to whether or not to undertake or approve such
4 action. Such statement shall be clearly written in a concise manner
5 capable of being read and understood by the public, shall deal with the
6 specific significant economic impacts which can be reasonably antic-
7 ipated, and shall not contain more detail than is appropriate, consider-
8 ing the nature and magnitude of the proposed action and the significance
9 of its potential impacts.
10 3. The agency may require an applicant to submit an economic report to
11 assist the agency in carrying out its responsibilities, including the
12 initial determination and, (where the applicant does not prepare the
13 economic impact statement), the preparation of an economic impact state-
14 ment under this article. The agency may request such other information
15 from an applicant necessary for the review of economic and social
16 impacts. Notwithstanding any use of outside resources or work, agencies
17 shall make their own independent judgment of the scope, contents, and
18 adequacy of an economic impact statement.
19 4. (a) As early as possible in the formulation of a proposal for an
20 action, the agency shall make an initial determination as to whether or
21 not an economic impact statement need be prepared for the action. With
22 respect to actions involving the issuance to an applicant of a permit or
23 other entitlement, the agency shall notify the applicant in writing of
24 its initial determination, specifying therein the basis for such deter-
25 mination. Notice of the initial determination, along with appropriate
26 supporting findings on agency actions, shall be kept on file in the main
27 office of the agency for public inspection. If the agency determines
28 that such statement is required, the agency or the applicant, at the
29 applicant's option, shall prepare or cause to be prepared a draft
30 economic impact statement. If the applicant does not exercise the option
31 to prepare such statement, the agency shall prepare it, cause it to be
32 prepared, or terminate its review of the proposed action. Such statement
33 shall describe the proposed action and reasonable alternatives to the
34 action, and briefly discuss, on the basis of information then available,
35 the remaining items required to be submitted by subdivision two of this
36 section. The purpose of a draft economic statement is to relate economic
37 and social considerations to the inception of the planning process, to
38 inform the public and other public agencies as early as possible about
39 proposed actions that may significantly affect the quality of the
40 economic and social conditions, and to solicit comments which will
41 assist the agency in the decision making process in determining the
42 economic and social consequences of the proposed action. The draft
43 statement shall resemble in form and content the economic impact state-
44 ment to be prepared after comments have been received and considered
45 pursuant to subdivision two of this section; however, that the length
46 and detail of the draft economic statement will necessarily reflect the
47 preliminary nature of the proposal and the early stage at which it is
48 prepared.
49 (b) The draft statement shall be filed with the appropriate governing
50 body of each municipality for whose benefit such agency is established.
51 5. (a) After the filing of a draft economic impact statement, the
52 agency shall determine whether or not to conduct a public hearing on the
53 economic impact of the proposed action. Such public hearing shall be
54 held in a city, town, or village where the project is proposed to be
55 located. The agency must give at least thirty days' published notice of
56 such public hearing and shall, at the same time, provide notice of such
S. 5138 10
1 hearing to the chief executive officer of each affected tax jurisdiction
2 within which the project is proposed to be located. The notice of hear-
3 ing must state the time and place of the hearing, contain a general,
4 functional description of the project, describe the prospective location
5 of the project, identify the initial owner, operator, or manager of the
6 project, generally describe the financial assistance contemplated by the
7 agency with respect to the project, and provide an opportunity for the
8 public to review the project application, which shall include an analy-
9 sis of the costs and benefits of the proposed project. The notice of
10 hearing must be published in the state register and the website of the
11 agency.
12 (b) If the agency determines to hold such a hearing, it shall commence
13 the hearing within sixty days of the filing and, unless the proposed
14 action is withdrawn from consideration, shall prepare the economic
15 impact statement within forty-five days after the close of the hearing,
16 except as otherwise provided. The need for such a hearing shall be
17 determined in accordance with procedures adopted by the agency pursuant
18 to section eight hundred fifty-eight of this title. If no hearing is
19 held, the agency shall prepare and make available the economic impact
20 statement within sixty days after the filing of the draft, except as
21 otherwise provided.
22 (c) Notwithstanding the specified time periods established by this
23 article, an agency shall vary the times so established herein for prepa-
24 ration, review and public hearings to coordinate the economic and social
25 review process with other procedures relating to review and approval of
26 an action. An application or authorization for an action upon which a
27 draft economic impact statement is determined to be required shall not
28 be complete until such draft statement has been filed and accepted by
29 the agency as satisfactory with respect to scope, content, and adequacy
30 for purposes of subdivision four of this section. Commencing upon such
31 acceptance, the economic impact statement process shall run concurrently
32 with other procedures relating to the review and approval of the action,
33 so long as reasonable time is provided for preparation, review, and
34 public hearings with respect to the draft economic impact statement.
35 6. To the extent possible, the economic impact statement prepared
36 pursuant to subdivision two of this section, together with the comments
37 of public agencies and members of the public, shall be filed with the
38 governing body of each municipality for whose benefit such agency is
39 established and made available to the public prior to acting on the
40 proposal which is the subject of the economic impact statement.
41 7. An agency may charge a fee to an applicant to recover the costs
42 incurred in preparing or causing to be prepared or reviewing a draft
43 economic impact statement or an economic impact statement on the action
44 which the applicant requests from the agency; provided, however, that an
45 applicant may not be charged a separate fee for both the preparation and
46 review of such statements. The technical services of the agency may be
47 made available on a fee basis reflecting the costs thereof to a request-
48 ing agency, which fee or fees may appropriately be charged by the agency
49 to the applicant under rules and regulations to be issued by the agency
50 for such purpose under section eight hundred fifty-eight of this title.
51 8. When an agency decides to carry out or approve an action which has
52 been the subject of an economic impact statement, it shall make an
53 explicit finding that the requirements of this section have been met and
54 that, consistent with social, economic, and other essential consider-
55 ations, to the maximum extent practicable, adverse economic, social, and
S. 5138 11
1 community effects revealed in the economic impact statement process will
2 be minimized or avoided.
3 9. The agency [must] shall hold a public hearing with respect to the
4 project and the proposed financial assistance being contemplated by the
5 agency after the completion of the final economic impact statement.
6 [Said] Such public hearing shall be held in a city, town or village
7 where the project [proposes] is proposed to [locate] be located. At
8 [said] such public hearing, interested parties shall be provided reason-
9 able opportunity, both orally and in writing, to present their views
10 with respect to the project and the final economic impact statement. A
11 public hearing may only be convened if two-thirds of the board members
12 are present. If not, such public hearing shall not be convened and shall
13 be rescheduled, subject to the same quorum requirements.
14 [3.] 10. The agency must give at least ten days published notice of
15 [said] such public hearing and shall, at the same time, provide notice
16 of such hearing to the chief executive officer of each affected tax
17 jurisdiction within which the project is located. The notice of hearing
18 must state the time and place of the hearing, contain a general, func-
19 tional description of the project, describe the prospective location of
20 the project, identify the initial owner, operator or manager of the
21 project and generally describe the financial assistance contemplated by
22 the agency with respect to the project. The notice of hearing must be
23 published in the state register and the website of the agency. Such
24 assistance shall also be consistent with environmental protection, such
25 as open space protection, that will promote new development patterns in
26 order to take advantage of resources and opportunities, such as existing
27 public sewer and water infrastructure, without compromising the needs of
28 future generations; and labor protection, including all federal, state,
29 and local labor laws, rules or regulations. The agency shall not grant
30 or appropriate assistance to any entity that has committed violations of
31 any federal, state, or local laws.
32 [4.] 11. Each agency shall develop a standard application form, which
33 shall be used by the agency to accept requests for financial assistance
34 from all individuals, firms, companies, developers or other entities or
35 organizations. The standard application form shall be submitted by or on
36 behalf of the applicant, and subscribed and affirmed under the penalties
37 of perjury by the applicant, or on behalf of the applicant by the chief
38 executive officer or such other individual that is duly authorized to
39 bind the applicant, as true, accurate and complete to the best of his or
40 her knowledge. The standard application form shall include the follow-
41 ing, and may include such other supplemental information as determined
42 to be necessary and appropriate by the agency, including supporting
43 documents and information provided by or on behalf of the applicant:
44 (a) the name and address of the project applicant;
45 (b) a description of the proposed project for which financial assist-
46 ance is requested, including the type of project, proposed location and
47 purpose of the project;
48 (c) the amount and type of financial assistance being requested,
49 including the estimated value of each type of tax exemption sought to be
50 claimed by reason of agency involvement in the project;
51 (d) a statement that there is a likelihood that the project would not
52 be undertaken but for the financial assistance provided by the agency
53 or, if the project could be undertaken without financial assistance
54 provided by the agency, a statement indicating why the project should be
55 undertaken by the agency;
S. 5138 12
1 (e) an estimate of capital costs of the project, including all costs
2 of real property and equipment acquisition and building construction or
3 reconstruction, financed from private sector sources, an estimate of the
4 percentage of project costs financed from public sector sources, and an
5 estimate of both the amount to be invested by the applicant and the
6 amount to be borrowed to finance the project[.];
7 (f) the projected number of full time equivalent jobs that would be
8 retained and that would be created if the request for financial assist-
9 ance is granted, the projected timeframe for the creation of new jobs,
10 the estimated salary and fringe benefit averages or ranges for catego-
11 ries of the jobs that would be retained or created if the request for
12 financial assistance is granted, and an estimate of the number of resi-
13 dents of the economic development region as established pursuant to
14 section two hundred thirty of the economic development law or the labor
15 market area as defined by the agency, in which the project is located
16 that would fill such jobs. The labor market area defined by the agency
17 for this purpose may include no more than six contiguous counties in the
18 state, including the county in which the project is to be located;
19 (g) a statement to the effect that the provisions of subdivision one
20 of section eight hundred sixty-two of this [chapter] title will not be
21 violated if financial assistance is provided for the proposed project;
22 (h) a statement that the owner, occupant or operator receiving finan-
23 cial assistance is in substantial compliance with applicable local,
24 state and federal tax, worker protection and environmental laws, rules
25 and regulations; and
26 (i) a statement acknowledging that the submission of any knowingly
27 false or knowingly misleading information may lead to the immediate
28 termination of any financial assistance and the reimbursement of an
29 amount equal to all or part of any tax exemptions claimed by reason of
30 agency involvement in the project.
31 [5.] 12. Each agency shall develop, and adopt by resolution, uniform
32 criteria for the evaluation and selection for each category of projects
33 for which financial assistance will be provided. At a minimum, the
34 criteria shall require that, for each project, the following must occur
35 prior to the approval of the provision of financial assistance:
36 (a) an assessment by the agency of all material information included
37 in connection with the application for financial assistance, as neces-
38 sary to afford a reasonable basis for the decision by the agency to
39 provide financial assistance for the project;
40 (b) a written cost-benefit analysis by the agency that identifies the
41 extent to which a project will create or retain permanent, private
42 sector jobs; the estimated value of any tax exemptions to be provided;
43 the amount of private sector investment generated or likely to be gener-
44 ated by the proposed project; the contribution of the project to the
45 state's renewable energy goals and emission reduction targets as set
46 forth in the state energy plan adopted pursuant to section 6-104 of the
47 energy law; the likelihood of accomplishing the proposed project in a
48 timely fashion; and the extent to which the proposed project will
49 provide additional sources of revenue for municipalities and school
50 districts; and any other public benefits that might occur as a result of
51 the project;
52 (c) a statement by the applicant that the project, as of the date of
53 the application, is in substantial compliance with all provisions of
54 this article including, but not limited to, the provisions of this
55 section and subdivision one of section eight hundred sixty-two of this
56 [chapter] title; and
S. 5138 13
1 (d) if the project involves the removal or abandonment of a facility
2 or plant within the state, notification by the agency to the chief exec-
3 utive officer or officers of the municipality or municipalities in which
4 the facility or plant was located.
5 [6.] 13. Each agency shall develop a uniform agency project agreement
6 that sets forth terms and conditions under which financial assistance
7 shall be provided. The uniform agency project agreement shall be used by
8 the agency and no financial assistance shall be provided in the absence
9 of the execution of such an agreement. The uniform agency project agree-
10 ment shall, at a minimum:
11 (a) describe the project and the financial assistance, including the
12 amount and type, to be provided, and the agency purpose to be achieved;
13 (b) require each project owner, occupant or operator receiving finan-
14 cial benefits to provide annually a certified statement and documenta-
15 tion: (i) enumerating the full time equivalent jobs retained and the
16 full time equivalent jobs created as a result of the financial assist-
17 ance, by category, including full time equivalent independent contrac-
18 tors or employees of independent contractors that work at the project
19 location, and (ii) indicating that the salary and fringe benefit aver-
20 ages or ranges for categories of jobs retained and jobs created that was
21 provided in the application is still accurate and if it is not still
22 accurate, providing a revised list of salary and fringe benefit averages
23 or ranges for categories of jobs retained and jobs created[.];
24 (c) indicate the dates when PILOT payments are to be made and provide
25 an estimate of the amounts for each affected tax jurisdiction of any
26 payments in lieu of taxes that are included as part of the transaction,
27 or formula or formulas by which those amounts may be calculated. In lieu
28 of providing such information, a copy of an executed payment in lieu of
29 tax agreement that contains the same information may be attached to the
30 uniform agency project agreement;
31 [(e)] (d) provide for the suspension or discontinuance of financial
32 assistance, or for the modification of any payment in lieu of tax agree-
33 ment to require increased payments, in accordance with policies devel-
34 oped by the agency pursuant to section eight hundred seventy-four of
35 this title;
36 [(f)] (e) provide for the return of all or a part of the financial
37 assistance provided for the project, including all or part of the amount
38 of any tax exemptions, which shall be redistributed to the appropriate
39 affected tax jurisdiction, as provided for in policies developed by the
40 agency pursuant to section eight hundred seventy-four of this title,
41 unless agreed to otherwise by any local taxing jurisdiction or jurisdic-
42 tions; and
43 [(g)] (f) provide that the owner, occupant or operator receiving
44 financial assistance shall certify, under penalty of perjury, that it is
45 in substantial compliance with all local, state and federal tax, worker
46 protection and environmental laws, rules and regulations.
47 § 8. Section 860 of the general municipal law, as added by chapter
48 1030 of the laws of 1969, is amended to read as follows:
49 § 860. Moneys of the agency. The agency shall have power to contract
50 with the holders of any of its bonds or notes as to the custody,
51 collection, securing, investment and payment of any moneys of the agency
52 or any moneys held in trust or otherwise for the payment of bonds or
53 notes or in any way to secure bonds or notes and to carry out any such
54 contract. Moneys held in trust or otherwise for the payment of bonds or
55 notes or in any way to secure bonds or notes and deposits of such moneys
56 may be secured in the same manner as moneys of the agency, and all banks
S. 5138 14
1 and trust companies are authorized to give such security for such depos-
2 its. Any lease payments, revenues, or other earnings of the agency
3 shall be paid to the local governing body of the municipality for whose
4 benefit such agency is established.
5 § 9. Section 882 of the general municipal law, as amended by chapter
6 373 of the laws of 2012, is amended and a new section 882-a is added to
7 read as follows:
8 § 882. Termination of the agency. Whenever all of the bonds or notes
9 issued by the agency shall have been redeemed or cancelled, and all
10 straight-lease transactions have been terminated, the agency shall cease
11 to exist and all rights, titles, and interest and all obligations and
12 liabilities thereof vested in or possessed by the agency shall thereupon
13 vest in and be possessed by the municipality. After October first, two
14 thousand twenty-five, non-county industrial development agencies created
15 under title two of this article shall not be able to issue any further
16 bonds or notes.
17 § 882-a. Prohibition of local industrial development agencies. No
18 further industrial development agencies may be created unless they are a
19 county-wide industrial development agency.
20 § 10. The general municipal law is amended by adding two new sections
21 885 and 885-a to read as follows:
22 § 885. Prevailing wage. Whenever a recipient of industrial develop-
23 ment agency funds, financial assistance, or other benefit enters into
24 any contract, subcontract, lease, grant, bond, covenant or other agree-
25 ment for or in connection with any construction, demolition, recon-
26 struction, excavation, rehabilitation, repair, renovation, alteration,
27 or improvement project, such project shall be deemed to be a public
28 works project for the purposes of article eight of the labor law, and
29 all of the provisions of article eight of the labor law shall be appli-
30 cable to all the work involved in the construction, demolition, recon-
31 struction, excavation, rehabilitation, repair, renovation, alteration,
32 or improvement of such project. Funds, financial assistance, or any
33 other benefits provided pursuant to this article shall not be utilized
34 for or in connection with the construction, demolition, reconstruction,
35 excavation, rehabilitation, repair, renovation, alteration, or improve-
36 ment of any project to which the provisions of article eight of the
37 labor law are not applicable.
38 § 885-a. Recapture. If a recipient entity of agency assistance does
39 not abide by any provision of this article or requirement made applica-
40 ble pursuant to the authority of this article, it shall pay back to the
41 agency that fraction of developmental assistance that accrued to its
42 benefit for the calendar year in which the benefit occurred, plus inter-
43 est at a rate determined by the granting agency. For one-time forms of
44 assistance such as grants or land price discounts, a defaulting entity
45 shall pay back to the granting agency one-fifth of the value of assist-
46 ance. Remittance of the payback by a recipient entity to a granting
47 agency shall take place within sixty calendar days of the delivery of
48 the default notice to the recipient entity.
49 § 11. This act shall take effect on the sixtieth day after it shall
50 have become a law; provided, however, that the provisions of section
51 seven of this act shall take effect immediately.
