S05279 Summary:

BILL NOS05279
 
SAME ASNo Same As
 
SPONSORPARKER
 
COSPNSRSEPULVEDA
 
MLTSPNSR
 
Add 859-d, Gen Muni L
 
Establishes additional procedures to be followed by industrial development agencies prior to making loans; includes goals to be achieved by project such as job creation, continuance of business or industry, and public purpose to be attained.
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S05279 Actions:

BILL NOS05279
 
03/01/2023REFERRED TO LOCAL GOVERNMENT
01/03/2024REFERRED TO LOCAL GOVERNMENT
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S05279 Committee Votes:

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S05279 Floor Votes:

There are no votes for this bill in this legislative session.
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S05279 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5279
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                      March 1, 2023
                                       ___________
 
        Introduced by Sens. PARKER, SEPULVEDA -- read twice and ordered printed,
          and when printed to be committed to the Committee on Local Government
 
        AN  ACT  to  amend  the general municipal law, in relation to industrial
          development agencies
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  general  municipal  law  is  amended by adding a new
     2  section 859-d to read as follows:
     3    § 859-d. Additional procedures for financial assistance. 1.  Prior  to
     4  providing  financial  assistance, the agency shall follow certain proce-
     5  dures which must include at least all of the following:
     6    (a) A description of the development assistance, including the  amount
     7  and  type.  The  description  must  include the fair market value of the
     8  development assistance to the recipient, including the value of  convey-
     9  ing  any  property  at  less  than a fair market price and including any
    10  other in-kind benefits to the person receiving the  development  assist-
    11  ance.
    12    (b)  A  statement  specifying  the  public purpose for the development
    13  assistance. The public purpose specified in the  development  assistance
    14  agreement may not be increasing the tax base. Job retention may be spec-
    15  ified  in  the development assistance agreement as a public purpose only
    16  if job loss by the person receiving the development assistance is  immi-
    17  nent and demonstrable.
    18    (c) The general goals for the development assistance.
    19    (d) Goals for the number of jobs to be created by the person receiving
    20  the  development  assistance during the two years following the date the
    21  development assistance is granted. The goals may include separate  goals
    22  for  the number of part-time jobs and full-time jobs, and in cases where
    23  job loss is imminent and demonstrable, separate goals for the number  of
    24  jobs retained.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07267-01-3

        S. 5279                             2
 
     1    (e)  Wage  goals  for the jobs to be created or retained by the person
     2  receiving the development assistance during the two years following  the
     3  date the development assistance is granted.
     4    (f)  A description of the financial obligation of the person receiving
     5  the development assistance if the goals  specified  in  the  development
     6  assistance agreement are not met.
     7    (g) A statement explaining why the development assistance is needed to
     8  achieve  the  public  purpose  specified  in  the development assistance
     9  agreement.
    10    (h) A commitment by the person receiving the development assistance to
    11  continue operations at any site where the development assistance is used
    12  for at least five years after the date  the  development  assistance  is
    13  provided.
    14    (i)  The  name  and  address of the parent corporation or other parent
    15  entity, if any, of the person receiving the development assistance.
    16    (j) A list of  all  development  assistance  provided  to  the  person
    17  receiving  development  assistance during the immediately preceding five
    18  years by other granting bodies.
    19    2. A development agreement entered into under  this  article  must  be
    20  approved by the following:
    21    (a)  The  fiscal  body  of the county where the development assistance
    22  will be used, if the development assistance  will  not  be  used  solely
    23  within a municipality.
    24    (b)  The  municipal fiscal body, if the development assistance will be
    25  used only within a municipality.
    26    3. If development assistance provided  by  a  granting  body  directly
    27  benefits  more  than one person, the granting body must assign a propor-
    28  tion of the development assistance to each person receiving  development
    29  assistance.  The proportion assigned by the granting body to each person
    30  must reflect a reasonable estimate of the person's share  of  the  total
    31  benefits of the development assistance.
    32    4.  (a)  The  development assistance agreement must include provisions
    33  that specify the obligation of  the  person  receiving  the  development
    34  assistance  to  repay  the development assistance if the person does not
    35  meet the goals specified by the development  assistance  agreement.  The
    36  development  assistance  agreement  must  require at least that a person
    37  failing to meet the goals must pay back the development assistance  plus
    38  interest  to the granting body. A repayment required by this section may
    39  be prorated to reflect partial fulfillment of goals. The  interest  rate
    40  used  to  calculate  the repayment must equal the gross domestic product
    41  implicit price deflator for the applicable period.
    42    (b) An agency may, after a public hearing, extend for  not  more  than
    43  one  year  the  period  for meeting the goals specified by a development
    44  assistance agreement.
    45    5. A person that fails to meet the terms of a  development  assistance
    46  agreement  may  not  receive  additional  development  assistance from a
    47  granting body until the earlier of the date:
    48    (a) five years after the person's failure  to  meet  the  terms  of  a
    49  development assistance agreement; or
    50    (b)  the  person  satisfies its repayment obligation under subdivision
    51  four of this section.
    52    § 2. This act shall take effect on the first of November next succeed-
    53  ing the date on which it shall have become a law.
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