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A06606 Summary:

BILL NOA06606
 
SAME ASSAME AS S03576
 
SPONSORSolages
 
COSPNSR
 
MLTSPNSR
 
Amd 862 & 874, Gen Muni L
 
Prevents the use of funds, financial incentives, subsidies or tax exemptions for projects where the occupier of the project is not disclosed.
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A06606 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6606
 
SPONSOR: Solages
  TITLE OF BILL: An act to amend the general municipal law, in relation to preventing the use of funds, financial incentives, subsidies or tax exemptions for project occupants which are not public   PURPOSE:: This bill would prohibit industrial development agencies (IDAs) from giving financial assistance to projects where the project occupant is kept secret from the public. Taxpayers should know which companies their money is going to support.   SUMMARY:: Section 1. Amends section 862 of the general municipal law by adding a new subdivision 3. Section 2: Amends section 874 of the general munici- pal law by adding a new subdivision 13. Section 3: Sets the effective date.   JUSTIFICATION:: The General Municipal Law currently provides for the allocation of public funds, financial incentives, subsidies, or tax exemptions to promote economic development in New York State. However, there is a concern that these incentives are being used to benefit private compa- nies or individuals, rather than the public interest. Each year, local industrial development agencies grant millions of dollars of financial assistance in the form of tax incentives, abatements, and payment in lieu of taxes (PILOT) agreements to projects seeking financial assist- ance. Sometimes, these incentives are given out without public knowledge of which company is receiving them. New Yorkers have a right to know which companies are getting publicly- funded incentives or tax exemptions. This bill will prohibit IDAs from giving incentives or exemptions to a project unless the occupant of the project is publicly known, ensuring that public funds, financial incen- tives, subsidies, or tax exemptions are not used to support projects that primarily benefit private entities. Overall, this proposed bill is necessary to ensure that public financial assistance is used in a way that benefits the public interest. By requiring that projects receiving such resources have a clear public benefit, this bill would promote economic development that benefits the community as a whole, rather than just a select few.   RACIAL JUSTICE IMPACT: TBD.   GENDER JUSTICE IMPACT: TBD.   LEGISLATIVE HISTORY:: 2021-22: A5200; referred to local governments. 2019-20: A7256; referred to local governments.   FISCAL IMPLICATIONS:: TBD.   EFFECTIVE DATE:: This act shall take effect immediately.
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A06606 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6606
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 24, 2023
                                       ___________
 
        Introduced  by M. of A. SOLAGES -- read once and referred to the Commit-
          tee on Local Governments
 
        AN ACT to amend the general municipal law, in relation to preventing the
          use of funds, financial incentives, subsidies or  tax  exemptions  for
          project occupants which are not public

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1.  Section 862 of the general municipal  law  is  amended  by
     2  adding a new subdivision 3 to read as follows:
     3    (3) No funds, financial incentives or subsidies of the agency shall be
     4  used  in respect of any project in which the project occupant as defined
     5  in section eighteen hundred one of the public  authorities  law  is  not
     6  publicly  disclosed  at  the  time of the public hearing for the project
     7  required by subdivision two of section  eight  hundred  fifty-nine-a  of
     8  this title.
     9    §  2.  Section 874 of the general municipal law is amended by adding a
    10  new subdivision 13 to read as follows:
    11    (13) No tax exemptions shall be granted to any project if the  project
    12  occupant  as  defined  in  section  eighteen  hundred  one of the public
    13  authorities law is not publicly disclosed at  the  time  of  the  public
    14  hearing  for  the  project  required by subdivision two of section eight
    15  hundred fifty-nine-a of this title.
    16    § 3. This act shall take effect immediately.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04551-01-3
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