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S05867 Summary:

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S05867 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5867
 
                               2015-2016 Regular Sessions
 
                    IN SENATE
 
                                      June 9, 2015
                                       ___________
 
        Introduced by Sen. MARCHIONE -- (at request of the State Comptroller) --
          read  twice  and  ordered printed, and when printed to be committed to
          the Committee on Rules
 
        AN ACT to amend the general municipal law, in relation to  the  account-
          ability and efficiency of industrial development agencies and authori-
          ties
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 859-a of the general municipal law  is  amended  by
     2  adding three new subdivisions 4, 5 and 6 to read as follows:
     3    4.  Each agency shall develop a standard application form, which shall
     4  be used by the agency to accept requests for financial  assistance  from
     5  all  individuals,  firms,  companies,  developers  or  other entities or
     6  organizations. The standard application form shall be submitted by or on
     7  behalf of the applicant, and subscribed and affirmed under the penalties
     8  of perjury by the applicant, or on behalf of the applicant by the  chief
     9  executive  officer  or  such other individual that is duly authorized to
    10  bind the applicant, as true, accurate and complete to the best of his or
    11  her knowledge. The standard application form shall include  the  follow-
    12  ing,  and  may include such other supplemental information as determined
    13  to be necessary and appropriate  by  the  agency,  including  supporting
    14  documents and information provided by or on behalf of the applicant:
    15    (a) the name and address of the project applicant;
    16    (b)  a description of the proposed project for which financial assist-
    17  ance is requested, including the type of project, proposed location  and
    18  purpose of the project;
    19    (c)  the  amount  and  type  of  financial assistance being requested,
    20  including the estimated value of each type of tax exemption sought to be
    21  claimed by reason of agency involvement in the project;
    22    (d) a statement that there is a likelihood that the project would  not
    23  be  undertaken  but  for the financial assistance provided by the agency
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11236-02-5
        S. 5867                             2
 
     1  or, if the project could  be  undertaken  without  financial  assistance
     2  provided by the agency, a statement indicating why the project should be
     3  undertaken by the agency;
     4    (e)  an  estimate of capital costs of the project, including all costs
     5  of real property and equipment acquisition and building construction  or
     6  reconstruction, financed from private sector sources, an estimate of the
     7  percentage  of project costs financed from public sector sources, and an
     8  estimate of both the amount to be invested  by  the  applicant  and  the
     9  amount to be borrowed to finance the project.
    10    (f)  the  projected  number of full time equivalent jobs that would be
    11  retained and that would be created if the request for financial  assist-
    12  ance  is  granted, the projected timeframe for the creation of new jobs,
    13  the estimated salary and fringe benefit averages or ranges  for  catego-
    14  ries  of  the  jobs that would be retained or created if the request for
    15  financial assistance is granted, and an estimate of the number of  resi-
    16  dents  of  the  economic  development  region as established pursuant to
    17  section two hundred thirty of the economic development law or the  labor
    18  market  area  as  defined by the agency, in which the project is located
    19  that would fill such jobs.  The labor market area defined by the  agency
    20  for this purpose may include no more than six contiguous counties in the
    21  state, including the county in which the project is to be located;
    22    (g)  a  statement to the effect that the provisions of subdivision one
    23  of section eight hundred sixty-two of this chapter will not be  violated
    24  if financial assistance is provided for the proposed project;
    25    (h)  a statement that the owner, occupant or operator receiving finan-
    26  cial assistance is in  substantial  compliance  with  applicable  local,
    27  state  and  federal tax, worker protection and environmental laws, rules
    28  and regulations; and
    29    (i) a statement acknowledging that the  submission  of  any  knowingly
    30  false  or  knowingly  misleading  information  may lead to the immediate
    31  termination of any financial assistance  and  the  reimbursement  of  an
    32  amount  equal  to all or part of any tax exemptions claimed by reason of
    33  agency involvement in the project.
    34    5. Each agency shall develop, and adopt by resolution, uniform  crite-
    35  ria  for  the evaluation and selection for each category of projects for
    36  which financial assistance will be provided. At a minimum, the  criteria
    37  shall  require that, for each project, the following must occur prior to
    38  the approval of the provision of financial assistance:
    39    (a) an assessment by the agency of all material  information  included
    40  in  connection  with the application for financial assistance, as neces-
    41  sary to afford a reasonable basis for the  decision  by  the  agency  to
    42  provide financial assistance for the project;
    43    (b)  a written cost-benefit analysis by the agency that identifies the
    44  extent to which a project  will  create  or  retain  permanent,  private
    45  sector  jobs;  the estimated value of any tax exemptions to be provided;
    46  the amount of private sector investment generated or likely to be gener-
    47  ated by the  proposed  project;  the  likelihood  of  accomplishing  the
    48  proposed  project  in  a  timely  fashion;  and  the extent to which the
    49  proposed project will provide additional sources of revenue for  munici-
    50  palities  and school districts; and any other public benefits that might
    51  occur as a result of 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; and
        S. 5867                             3
 
     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.  Each  agency shall develop a uniform agency project agreement that
     6  sets forth terms and conditions under which financial  assistance  shall
     7  be  provided.  The uniform agency project agreement shall be used by the
     8  agency and no financial assistance shall be provided in the  absence  of
     9  the execution of such an agreement. The uniform agency project agreement
    10  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)  provide for the suspension or discontinuance of financial assist-
    32  ance, or for the modification of any payment in lieu of tax agreement to
    33  require increased payments, in accordance with policies developed by the
    34  agency pursuant to section eight hundred seventy-four of this title;
    35    (f) provide for the return of all or a part of the  financial  assist-
    36  ance  provided  for  the project, including all or part of the amount of
    37  any tax exemptions, which shall  be  redistributed  to  the  appropriate
    38  affected  tax jurisdiction, as provided for in policies developed by the
    39  agency pursuant to section eight hundred  seventy-four  of  this  title,
    40  unless agreed to otherwise by any local taxing jurisdiction or jurisdic-
    41  tions; and
    42    (g)  provide  that the owner, occupant or operator receiving financial
    43  assistance shall certify, under  penalty  of  perjury,  that  it  is  in
    44  substantial  compliance  with  all  local, state and federal tax, worker
    45  protection and environmental laws, rules and regulations.
    46    § 2. Section 874 of the general municipal law  is  amended  by  adding
    47  three new subdivisions 10, 11 and 12 to read as follows:
    48    (10)  Each agency shall develop policies for the suspension or discon-
    49  tinuance of financial assistance, or for the modification of any payment
    50  in lieu of tax agreement to require  increased  payments  under  circum-
    51  stances  as  specified in the policy, which may include but shall not be
    52  limited to events of material violation of the terms and conditions of a
    53  project agreement.
    54    (11) Each agency shall develop policies for the return  of  all  or  a
    55  part of the financial assistance provided for the project, including all
    56  or part of the amount of any tax exemptions, as specified in the policy,
        S. 5867                             4
 
     1  which may include but shall not be limited to material shortfalls in job
     2  creation  and  retention projections or material violations of the terms
     3  and conditions of project agreements.  All such returned amounts of  tax
     4  exemptions shall be redistributed to the appropriate affected tax juris-
     5  diction, unless agreed to otherwise by any local taxing jurisdiction.
     6    (12)  Each  agency shall at least annually assess the progress of each
     7  project for which bonds or notes remain  outstanding  or  straight-lease
     8  transactions have not terminated, or which continue to receive financial
     9  assistance or are otherwise active, toward achieving the investment, job
    10  retention  or  creation, or other objectives of the project indicated in
    11  the project application. Such assessments shall  be  provided  to  board
    12  members.
    13    § 3. This act shall take effect on the one hundred eightieth day after
    14  it  shall  have  become  a law and shall apply to industrial development
    15  agencies created pursuant to article 18-A of the general  municipal  law
    16  and  shall  also  apply with full force and effect to the cities of Troy
    17  and Auburn industrial development authorities  established  pursuant  to
    18  the  public authorities law; provided, however, the provisions of subdi-
    19  vision 12 of section 874 of  the  general  municipal  law  as  added  by
    20  section  two  of  this  act  shall apply only to projects approved on or
    21  after the effective date of this act.