Amd §§912 & 912-b, ren §912 to be §912-b, Gen Muni L; amd §54, Exec L; amd Part III §3, Chap 58 of 2023
Extends the term and authority of the independent monitor for the Orange county industrial development agency; requires such monitor also monitor the Orange county funding corporation; modifies the applicability of certain tax exemptions based on population; extends provisions of law related to the independent monitor for the Orange county industrial development agency.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10157
SPONSOR: Jacobson TITLE OF BILL:
An act to amend the general municipal law and the executive law, in
relation to extending the term and authority of the independent monitor
for the Orange county industrial development agency, and modifying the
applicability of certain tax exemptions based on population; to amend
part III of chapter 58 of the laws of 2023, amending the general munici-
pal law and the executive law relating to directing the state inspector
general to appoint an independent monitor for the Orange county indus-
trial development agency, in relation to the effectiveness thereof; and
providing for the repeal of certain provisions upon the expiration ther-
eof
PURPOSE OR GENERAL IDEA OF BILL:
This bill would ensure continued independent oversight of the Orange
County Industrial Development Agency (IDA) and responsible stewardship
of taxpayer-funded benefits. The bill also provides for the Provides
that any privately-owned project receiving benefits as-of-right under
the 485-B property tax program, or receiving a payment-in-lieu-of-taxes
agreement from an IDA, in Orange County shall be subject to prevailing
wage for all labor used for the project.
SUMMARY OF PROVISIONS:
Section 1: Amends section 912 of the general municipal law to renumber
certain subdivisions.
'Section 2: Amends section 912 of the general municipal law to include a
definition of "monitor;" provides discretion to the Inspector General to
e.:.:tend the term of the appointed monitor and to exempt such extension
from article eleven of ste finance law; provides that the monitor shall
advise the agency's board or employees in writing of their approval or
disapproval of any proposed contract for financial assistance; prohibits
any such contract be voted on by the agency's board unless the monitor
has provided prior approval of such; sets forth a formal process for
adoption or denial of any recommendations made by the monitor within
forty-five days of receiving such; allows the monitor to dircct the
agency's board to recoup financial assistance where the recipient has
failed to meet the terms of a contract including, but not limited to,
job creation goals; extends the monitor's oversight authority to include
theOperations of the Orange county funding corporation; and, provides
that the monitor may commence an action in court against the Orange
County Industrial Agency in the event that the Agency fails to make
required payments related to the monitor's service or legal counsel.
Section 3: Makes technical amendments to subdivision 8 of section 54 of
the executive law.
Section 4: Provides that any privately-owned project receiving benefits
as-of-right under the 485B property tax program, or receiving a
payment-in-lieu-of-taxes agreement from an IDA, within a county of
between 390,000 and 415,000 residents as of the last federal census,
shall be subject to prevailing wage for all labor used for the project,
Orange County is the only county in New York State with a population
between 390,000 and 415,000 residents.
Section 5: Amends section 3 of part III of chapter 58 of the laws of
2023, extending the length of the monitor's term from three years from
the date of original passage to six years.
Section 6: Sets the effective date which is immediately, provided howev-
er that the amendments to Subdivisions 2, 3, 4, and 8 of Section 912-b
of the General Municipal Law made by Section 2 of this act and the
amendments to Subdivision 8 of the Executive Law made by Section 3 of
this act shall not affect the repeal of such subdivision and shall be
deemed to expire therewith; and provided further, however, that Subdivi-
sions 5, 6, and 7 of Section 912-b of the General Municipal law as added
by Section 2 of this act and Section 4 of this act shall expire and be
deemed repealed on the same date as subdivision 2,3,4 and 8 of Section
912-b of the General Municipal Law and subdivision 8 of Section 54 of
the Executive Law.
JUSTIFICATION:
In response to the Orange County Industrial Development Agency's (IDA)
recent history of criminally corrupt leadership; including three felony
convictions of top IDA officials, as well as continued failure to vet
and provide oversight of IDA applications, the Legislature was compelled
to install an independent monitor in 2023. Doing so was a necessary and
fiscally responsible step, aimed at restoring the confidence of local
taxpayers and ensuring fair and consistent application of IDA benefits
for business attraction.
In 2025, the independent monitor identified numerous examples of
IDA-supported projects which were not meeting or had not met the job
creation goals set forth within their contracts for receiving IDA bene-
fits. The agency failed to track job creation figures a basic responsi-
bility and was caught off guard by the monitor's discoveries.
Later that year, the IDA attempted to advance an $80 million property
tax break package for an Amazon facility against the wishes of thousands
of local taxpayers and officials, which would have subsidized the
creation of hundreds of poverty-level-wage jobs. Subsequently, the
independent monitor vetoed the IDA's proposed incentive package on
behalf of taxpayers, particularly citing the IDA's lack of transparency
and willingness to facilitate answers to basic questions about the
application. Rather than attempting to renegotiate a more favorable
arrangement with all parties that would have better aligned with the
monitor's guidance, the IDA opted to take the extraordinary step of
suing the state-appointed monitor and the state's Inspector General.
Notably, the monitor has identified dozens of shortcomings and lacking
practices within the agency's controls that have led to many recommenda-
tions some adopted, some not over the years. The monitor's value in this
regard has proven indispensable.
AdditiOnally, the monitor's presence has deterred many bad actors from
applying for IDA benefits that would have proven unneeded for their
respective projects to advance, providing taxpayers with enormous
savings given the IDA's long history of non-existent vetting of "but
for" requirements,
With the monitor's statutory term set to sunset in May 2026, it is clear
that the term and authority of the independent monitor must be extended
to curb the fly-by-night deal-making and operational deficiencies of the
IDA that continue to harm local taxing jurisdictions. This bill would
extend the monitor's term for three more years, add enhanced oversight
authority, and expand this authority, allowing the monitor to oversee
the operation of the Orange County Funding Corporation, the IDA's non-
profit arm.
Further, this bill specifies that any privately-owned project receiving
benefits as-of-right under the 485-B property tax program - or receiving
a payment-in-lieu-of-taxes agreement from a local IDA - within a county
of between 390,000 and 415,000 residents shall be subject to prevailing
wage for all labor used for the project. This measure ensures good-pay-
ing jobs for Orange County's construction workers for projects not
moving through the IDA process because, rightfully, the monitor's pres-
ence has deterred applications that serve as nothing more than a taxpay-
er-funded giveaway. It would also take away the excuse or need for an
IDA agreement or benefits just to make sure that the jobs of the project
are paid at prevailing wages.
Without continued independent oversight of the Orange County IDA, anti-
taxpayer abuses will persist. The monitor's extension would protect
Orange County's taxpayers, while ensuring the county's economic develop-
ment needs are appropriately and responsibly met.
PRIOR LEGISLATIVE HISTORY:
None. New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
TO be determined. Local school districts and local governments could
benefit from the denial of bad IDA projects since the school districts
and local government would not be losing tax revenues due to the IDA
approval of these projects.
EFFECTIVE DATE:
This act shall take effect immediately, provided however that the amend-
ments to Subdivisions 2, 3, 4, and 8 of Section 912-b of the General
Municipal Law made by Section 2 of this act and the amendments to Subdi-
vision 8 of the Executive Law made by Section 3 of this act shall not
affect the repeal of such subdivision and shall be deemed to expire
therewith; and provided further, however, that Subdivisions 5, 6, and 7
of Section 912-b of the General Municipal law as added by Section 2 of
this act and Section 4 of this act shall expire and be deemed repealed
on the same date as subdivision 2,3,4 and 8 of Section 912-b of the
General Municipal Law and subdivision 8 of Section 54 of the Executive
Law.
STATE OF NEW YORK
________________________________________________________________________
10157
IN ASSEMBLY
February 12, 2026
___________
Introduced by M. of A. JACOBSON, EACHUS, KAY -- read once and referred
to the Committee on Local Governments
AN ACT to amend the general municipal law and the executive law, in
relation to extending the term and authority of the independent moni-
tor for the Orange county industrial development agency, and modifying
the applicability of certain tax exemptions based on population; to
amend part III of chapter 58 of the laws of 2023, amending the general
municipal law and the executive law relating to directing the state
inspector general to appoint an independent monitor for the Orange
county industrial development agency, in relation to the effectiveness
thereof; and providing for the repeal of certain provisions upon the
expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 5 of section 912 of the general municipal law,
2 as added by section 1 of part III of chapter 58 of the laws of 2023, is
3 renumbered subdivision 8.
4 § 2. Section 912 of the general municipal law, as amended by section 1
5 of part III of chapter 58 of the laws of 2023 and subdivision 8 as
6 renumbered by section one of this act, is renumbered section 912-b and
7 amended to read as follows:
8 § 912-b. Orange county industrial development agency. 1. For the bene-
9 fit of the county of Orange and the inhabitants thereof, an industrial
10 development agency, to be known as the ORANGE COUNTY INDUSTRIAL DEVELOP-
11 MENT AGENCY, is hereby established for the accomplishment of any or all
12 of the purposes specified in title one of this article. It shall consti-
13 tute a body corporate and politic, and be perpetual in duration. It
14 shall have the powers and duties now or hereafter conferred by title one
15 of this article upon industrial development agencies. It shall be organ-
16 ized in a manner prescribed by and be subject to the provisions of title
17 one of this article. Its members shall be appointed by the governing
18 body of the county of Orange. The agency, its members, officers and
19 employees and its operations and activities shall in all respects be
20 governed by the provisions of title one of this article.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14538-03-6
A. 10157 2
1 2. For purposes of this section[,]:
2 (a) "financial assistance" shall mean any financial assistance offered
3 by the Orange county industrial development agency for any project,
4 including but not limited to, a payment in lieu of taxes agreement, an
5 agreement to waive sales tax, or an agreement to waive mortgage record-
6 ing taxes.
7 (b) "monitor" shall mean the independent monitor appointed by the
8 state inspector general under paragraph (a) of subdivision three of this
9 section.
10 3. (a) In accordance with the powers of the office of the state
11 inspector general established by subdivision eight of section fifty-four
12 of the executive law, the state inspector general shall appoint an inde-
13 pendent monitor to carry out the provisions of this section including
14 but not limited to providing guidance and technical assistance related
15 to the policies, practices, programs and decisions of the Orange county
16 industrial development agency, including but not limited to decisions,
17 actions and policies related to contracts and financial assistance
18 agreements. The state inspector general shall appoint such monitor with-
19 in ninety days of the effective date of this subdivision or as soon
20 thereafter as is practicable. After such appointment, the inspector
21 general may only remove the monitor for violations of law. The inspec-
22 tor general may extend the appointment of the monitor upon the expira-
23 tion of such monitor's term and such extension shall not be subject to
24 article eleven of the state finance law.
25 (b) The reasonable and necessary expenses incurred by the monitor
26 while performing [his or her] their official duties shall be paid by the
27 industrial development agency. Notwithstanding any other provision of
28 law, while acting within the scope of [his or her] their authority, the
29 monitor shall not be subject to any liability resulting from carrying
30 out any of the powers expressly given in this section, and the monitor
31 shall be entitled to defense and indemnification by the industrial
32 development agency.
33 (c) The monitor shall be entitled to attend all meetings of the indus-
34 trial development agency, including executive sessions; provided howev-
35 er, such monitor shall not be considered for purposes of establishing a
36 quorum of the board, provided further that the monitor may be excused
37 from executive sessions when proposed, pending or current litigation
38 involving the monitor or the office of the state inspector general are
39 being discussed. The industrial development agency shall cooperate with
40 any monitor with access, within forty-eight hours of such request from
41 the monitor, to any necessary documents and records of the industrial
42 development agency including but not limited to databases and planning
43 documents, financial assistance agreements, and contracts consistent
44 with all applicable state and federal statutes. The monitor shall
45 provide a copy of such request for any document or record to the indus-
46 trial development agency board.
47 (d) The board shall provide the monitor with copies of any meeting
48 agendas and all resolutions and motions on such agenda for each board
49 meeting no later than seventy-two hours prior to such board meeting. If
50 a proposed resolution or motion is for the purpose of approving a
51 contract or any financial assistance for a project, the board clerk
52 shall provide the monitor with copies of the proposed contract or finan-
53 cial assistance language at least seven days prior to such meeting.
54 (e) In the event the monitor is not provided with copies of proposed
55 resolutions or motions seventy-two hours prior to a board meeting or in
56 the case of a proposed motion or resolution for the purpose of approving
A. 10157 3
1 a contract or financial assistance, seven days prior to the next board
2 meeting, the monitor may, at their discretion, remove an item including
3 board resolutions or motions, from consideration by the board at such
4 meeting. Upon failure of the board to provide proposed resolutions or
5 motions as required by this section, the monitor shall provide notice of
6 failure to the board. An item removed from consideration by the monitor
7 may not be reconsidered by the board until the next board meeting.
8 (f) The monitor shall have the power to review any modification to the
9 industrial development agency's uniform tax exemption policy required by
10 section eight hundred seventy-four of this article, contract or finan-
11 cial assistance proposed for consideration by the industrial development
12 agency proposed by the board on or after the effective date of this
13 subdivision; provided however, that all such proposed modifications to
14 the industrial development agency's uniform tax exemption policy
15 required by section eight hundred seventy-four of this article,
16 contracts or agreements shall be provided by the industrial development
17 agency board to the monitor at least seven days prior to adoption.
18 (i) At least seventy-two hours prior to adoption by the board, the
19 monitor shall advise the board or employees of the industrial develop-
20 ment agency, in writing, of the existence of violations of the indus-
21 trial development agency's uniform tax exemption policy required by
22 section eight hundred seventy-four of this article, actual or potential
23 conflicts of interest, or violations of law arising from a proposed
24 contract or financial assistance agreement that the industrial develop-
25 ment agency shall consider before entering into any such contract or
26 agreement.
27 (ii) The board shall document for its own records the existence and
28 resolution of any actual or potential conflict of interest or other
29 violation identified by the monitor.
30 (iii) No such contract or agreement may be approved or entered into by
31 the industrial development agency unless such actual or potential
32 conflict of interest or violation has been resolved to the satisfaction
33 of the monitor.
34 (iv) At least seventy-two hours prior to adoption by the board, the
35 monitor shall advise the board or employees, in writing, of their
36 approval or disapproval of any proposed contract or agreement for finan-
37 cial assistance. No such contract or agreement may be voted on by the
38 board unless the monitor has advised the board or employees, in writing,
39 of their approval.
40 (v) At least seventy-two hours prior to adoption by the board, the
41 monitor shall advise the board or employees, in writing, of [its] their
42 disapproval of any changes to the industrial development agency's
43 uniform tax exemption policy; provided additionally, that within thirty
44 days after their appointment, the monitor shall advise such board or
45 employees, in writing, of [its] their disapproval of any changes to the
46 industrial development agency's uniform tax exemption policy made by the
47 board that were made on or after the effective date of this subdivision
48 until such monitor's appointment. Any such change to the uniform tax
49 exemption policy disapproved by the monitor shall not be effective, and
50 [may] shall not be reconsidered by the board for at least ten days or
51 until the next board meeting; provided, however, that any change to the
52 uniform tax exemption policy that was made by the board on or after the
53 effective date of this subdivision until such monitor's appointment that
54 is disapproved by the monitor shall not affect the validity of any prior
55 agreement entered into prior to the monitor's appointment.
A. 10157 4
1 [(v)] (vi) At least seventy-two hours prior to adoption by the board,
2 the monitor shall advise the board or employees, in writing, of [its]
3 their disapproval of any proposed contract or agreement with a project
4 applying for financial assistance that would permit a deviation from the
5 industrial development agency's uniform tax exemption policy required by
6 section eight hundred seventy-four of this article. Any such proposed
7 contract or financial assistance agreement that would permit a deviation
8 from such policy shall not be effective, and may not be reconsidered by
9 the board for at least ten days or until the next board meeting.
10 [(vi)] (vii) The monitor shall have seventy-two hours after any
11 contract or financial assistance is approved to review such financial
12 assistance or contract, and if a violation of policy related to the
13 industrial development agency's uniform tax exemption policy required by
14 section eight hundred seventy-four of this article, a conflict of inter-
15 est, or a violation of law is identified during such time period, the
16 monitor shall notify the industrial development agency in writing. Any
17 such contract or financial assistance so identified by the monitor shall
18 not be legally binding or effective, and may not be reconsidered by the
19 board for at least ten days or until the next board meeting.
20 (g) The board, in consultation with the monitor, shall adopt a
21 conflict of interest policy, or revise an existing conflict of interest
22 policy, that complies with all existing applicable laws, rules and regu-
23 lations, including article eighteen of this chapter. The conflict of
24 interest policy shall include, but not be limited to:
25 (i) a definition of the circumstances that constitute a conflict of
26 interest;
27 (ii) procedures for identifying, disclosing and resolving a conflict
28 of interest to the board;
29 (iii) a requirement that the person with the conflict of interest not
30 be present at or participate in board deliberations or votes on the
31 matter giving rise to such conflict, provided that nothing in this para-
32 graph shall prohibit the board from requesting that the person with the
33 conflict of interest present information as background or answer ques-
34 tions at a board meeting prior to the commencement of deliberations or
35 voting thereto;
36 (iv) a prohibition against any attempt by the person with the conflict
37 to influence improperly the deliberation or voting on the matter giving
38 rise to such conflict;
39 (v) compliance with all applicable state laws and regulations; and
40 (vi) a requirement that the existence and resolution of the conflict
41 be documented in the board's records, including in the minutes of any
42 meeting at which the conflict was discussed or voted upon.
43 (h) The monitor may advise the board and any industrial development
44 agency officers, employees or agents to undergo any training as deemed
45 necessary.
46 4. The monitor shall undertake an enhanced review of the budget deci-
47 sions and financial assistance agreements of the industrial development
48 agency.
49 (a) The board shall annually submit the industrial development agen-
50 cy's proposed budget for the next succeeding fiscal year to the monitor
51 no later than forty-five days prior to its adoption. The monitor shall
52 review the budget to ensure that it, to the greatest extent possible, is
53 consistent with purposes and necessary activities of the Orange county
54 industrial development agency, and that it does not substantially
55 conflict with the long term economic interests of Orange county and its
56 constituents.
A. 10157 5
1 (b) The board shall provide quarterly reports to the monitor and annu-
2 al reports to the state inspector general on the operational status of
3 the industrial development agency. In addition, the monitor shall
4 provide semi-annual reports to the state inspector general, the gover-
5 nor, the temporary president of the senate, and the speaker of the
6 assembly on the fiscal and operational status of the industrial develop-
7 ment agency. Such semi-annual report shall include a summary of all the
8 contracts that the board entered into throughout the year. All reports
9 shall be subject to review by the comptroller.
10 (c) The monitor shall advise the board in the development and revision
11 of the industrial development agency's goals, implementation of its
12 priorities and budgetary recommendations.
13 (d) The monitor may recommend, and the board may consider by vote of a
14 resolution at the next scheduled meeting of the board, cost saving meas-
15 ures including, but not limited to, shared service agreements.
16 (e) Upon receiving a recommendation, in writing, from the monitor, the
17 board shall consider such recommendation and, within forty-five days of
18 receiving such recommendation, hold a vote on accepting such recommenda-
19 tion. Such recommendation shall only be rejected upon at least five
20 members of the board voting to reject such recommendation. Such recom-
21 mendations requiring such a vote shall include, but not be limited to,
22 recommendations relating to contracts, budget decisions, and financial
23 assistance agreements.
24 5. The monitor shall, at their discretion, direct the board to recoup
25 financial assistance, in full or in part, where the recipient of finan-
26 cial assistance failed to execute and complete the terms of a contract,
27 agreement or understanding including, but not limited to, job creation
28 goals and the development of promised facilities or operations.
29 6. The Orange county funding corporation, established by Orange county
30 resolution number one hundred twenty-five of the year two thousand ten,
31 shall also comply with the provisions of this section in the same manner
32 as the Orange county industrial development agency. The monitor shall
33 also have all the same powers and authority, as enumerated in this
34 section in relation to the Orange county industrial development agency,
35 in relation to such Orange county funding corporation.
36 7. Notwithstanding any other provision of law to the contrary, the
37 monitor may commence an action in any court of competent jurisdiction
38 against the agency where money is owed by the agency including, but not
39 limited to, any payments required for the monitor's legal counsel.
40 8. Nothing in this section shall be construed to abrogate the duties
41 and responsibilities of the board consistent with applicable state law
42 and regulations.
43 § 3. Subdivision 8 of section 54 of the executive law, as added by
44 section 2 of part III of chapter 58 of the laws of 2023, is amended to
45 read as follows:
46 8. Appoint an independent monitor to provide guidance and technical
47 assistance related to the policies, practices, programs and decisions of
48 the Orange county industrial development agency, as authorized in subdi-
49 visions two, three, four [and], five, six, seven and eight of section
50 nine hundred [twelve] twelve-b of the general municipal law.
51 § 4. Notwithstanding any other provision of law to the contrary, in a
52 county with a population of at least 390,000 and no greater than 415,000
53 according to the latest federal decennial census, any privately-owned
54 project receiving benefits under section 485-b of the real property tax
55 law or a payment in lieu of taxes agreement from an industrial develop-
56 ment agency shall be subject to the payment of no less than prevailing
A. 10157 6
1 wages for all employees of any contractors and subcontractors utilized
2 for such project, consistent with article 8 of the labor law; provided
3 however, that any such privately-owned project which utilizes a project
4 labor agreement and receives either an exemption pursuant to section
5 485-b of the real property tax law or a payment in lieu of taxes agree-
6 ment from an industrial development agency shall not be subject to arti-
7 cle 8 of the labor law.
8 § 5. Section 3 of part III of chapter 58 of the laws of 2023, amending
9 the general municipal law and the executive law relating to directing
10 the state inspector general to appoint an independent monitor for the
11 Orange county industrial development agency, is amended to read as
12 follows:
13 § 3. This act shall take effect immediately; provided however, that
14 subdivisions two, three, four and five of section 912 of the general
15 municipal law, as added by section one of this act, and subdivision 8 of
16 section 54 of the executive law, as added by section two of this act,
17 shall expire and be deemed repealed [three] six years after such effec-
18 tive date.
19 § 6. This act shall take effect immediately; provided, however, that
20 the amendments to subdivisions 2, 3, 4 and 8 of section 912-b of the
21 general municipal law made by section two of this act and the amendments
22 to subdivision 8 of section 54 of the executive law made by section
23 three of this act shall not affect the repeal of such subdivisions and
24 shall be deemed to expire therewith; and provided further, however, that
25 subdivisions 5, 6, and 7 of section 912-b of the general municipal law
26 as added by section two of this act and section four of this act shall
27 expire and be deemed repealed on the same date as subdivisions 2, 3, 4
28 and 8 of section 912-b of the general municipal law and subdivision 8 of
29 section 54 of the executive law.
