Bill Text: NY A02145 | 2021-2022 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Moderate Partisan Bill (Democrat 8-2)
Status: (Introduced - Dead) 2022-01-05 - referred to local governments [A02145 Detail]
Download: New_York-2021-A02145-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2145 2021-2022 Regular Sessions IN ASSEMBLY January 14, 2021 ___________ Introduced by M. of A. SIMON, McDONOUGH -- Multi-Sponsored by -- M. of A. GOTTFRIED, GRIFFIN, GUNTHER, LALOR, NIOU, REYES, J. RIVERA, SEAWRIGHT -- read once and referred to the Committee on Local Govern- ments 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 be9agreed upon between the county, city, town or village and said local10development 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01106-02-1A. 2145 2 1 this section, and shall act and choose alternatives which, consistent 2 with social, economic, environmental, labor, and other essential consid- 3 erations, to the maximum extent practicable, minimize or avoid adverse 4 economic effects, including effects revealed in the economic impact 5 statement process. Such a statement shall include a detailed statement 6 setting forth the following: 7 (A) a description of the proposed action and its economic and social 8 setting; 9 (B) the economic and social impact of the proposed action, including 10 short-term and long-term effects, especially to the affected community; 11 (C) any adverse economic effects which cannot be avoided should the 12 proposal be implemented; 13 (D) alternatives to the proposed action; 14 (E) any irreversible and irretrievable commitments and social 15 resources which would be involved in the proposed action, should it be 16 implemented; 17 (F) mitigation measures proposed to minimize the economic, social, or 18 other essential impacts; and 19 (G) the growth-inducing aspects of the proposed action, where applica- 20 ble and significant. Such a statement shall also include copies or a 21 summary of the substantive comments received by the corporation pursuant 22 to clause (IV) of this subparagraph and the corporation's response to 23 such comments. The purpose of an economic impact statement is to provide 24 detailed information about the effect which a proposed action is likely 25 to have on the economy, employment conditions, and social character- 26 istics of a community, to list ways in which any adverse effects of such 27 an action might be minimized, and to suggest alternatives to such an 28 action so as to form the basis for a decision as to whether or not to 29 undertake or approve such action. Such statement shall be clearly writ- 30 ten in a concise manner capable of being read and understood by the 31 public, shall deal with the specific, significant economic impacts which 32 can be reasonably anticipated, and shall not contain more detail than is 33 appropriate, considering the nature and magnitude of the proposed action 34 and the significance of its potential impacts. 35 (II) The corporation may require an applicant to submit an economic 36 report to assist the corporation in carrying out its responsibilities, 37 including the initial determination and, (where the applicant does not 38 prepare the economic impact statement), the preparation of an economic 39 impact statement under this subparagraph. The corporation may request 40 such other information from an applicant as it deems necessary for the 41 review of economic and social impacts. Notwithstanding any use of 42 outside resources or work, corporations shall make their own independent 43 judgment of the scope, contents, and adequacy of an economic impact 44 statement. 45 (III) (A) As early as possible in the formulation of a proposal for an 46 action, the corporation shall make an initial determination as to wheth- 47 er or not an economic impact statement need be prepared for the action. 48 With respect to actions involving the issuance to an applicant of a 49 permit or other entitlement, the corporation shall notify the applicant 50 in writing of its initial determination, specifying therein the basis 51 for such determination. Notice of the initial determination, along with 52 appropriate supporting findings on corporation actions, shall be kept on 53 file in the main office of the corporation for public inspection. If the 54 corporation determines that such statement is required, the corporation 55 or the applicant, at the applicant's option, shall prepare or cause to 56 be prepared a draft economic impact statement. If the applicant doesA. 2145 3 1 not exercise the option to prepare such statement, the corporation shall 2 prepare it, cause it to be prepared, or terminate its review of the 3 proposed action. Such statement shall describe the proposed action and 4 reasonable alternatives to the action, and briefly discuss, on the basis 5 of information then available, the remaining items required to be 6 submitted by clause (I) of this subparagraph. The purpose of a draft 7 economic statement is to relate economic and social considerations to 8 the inception of the planning process, to inform the public and other 9 public agencies as early as possible about proposed actions that may 10 significantly affect the quality of the economic and social conditions, 11 and to solicit comments which will assist the corporation in the deci- 12 sion making process in determining the economic and social consequences 13 of the proposed action. The draft statement shall resemble in form and 14 content the economic impact statement to be prepared after comments have 15 been received and considered pursuant to clause (I) of this subpara- 16 graph; provided, however, that the length and detail of the draft 17 economic statement will necessarily reflect the preliminary nature of 18 the proposal and the early stage at which it is prepared; 19 (B) The draft statement shall be filed with the appropriate governing 20 body of each municipality or political subdivision thereof for whose 21 benefit such corporation is established. 22 (IV) (A) After the filing of a draft economic impact statement, the 23 corporation shall determine whether or not to conduct a public hearing 24 on the economic impact of the proposed action. Such public hearing shall 25 be held in a city, town or village where the project is proposed to be 26 located or, in cities having a population of one million or more, in the 27 community district or districts in which such project is proposed to be 28 located or in the respective borough, if such project is proposed to be 29 located in two or more community districts. The corporation must give 30 at least thirty days' published notice of such public hearing and shall, 31 at the same time, provide notice of such hearing to the chief executive 32 officer of each affected tax jurisdiction within which the project is 33 proposed to be located. The notice of hearing must state the time and 34 place of the hearing, contain a general, functional description of the 35 project, describe the prospective location of the project, identify the 36 initial owner, operator, or manager of the project, generally describe 37 the financial assistance contemplated by the corporation with respect to 38 the project, and provide an opportunity for the public to review the 39 project application, which shall include an analysis of the costs and 40 benefits of the proposed project. The notice of hearing must be 41 published in the state register and the website of the corporation. 42 (B) If the corporation determines to hold such a hearing, it shall 43 commence the hearing within sixty days of the filing and, unless the 44 proposed action is withdrawn from consideration, shall prepare the 45 economic impact statement within forty-five days after the close of the 46 hearing, except as otherwise provided. The need for such a hearing shall 47 be determined in accordance with procedures adopted by the corporation. 48 If no hearing is held, the corporation shall prepare and make available 49 the economic impact statement within sixty days after the filing of the 50 draft, except as otherwise provided. 51 (C) Notwithstanding the specified time periods established by this 52 subparagraph, a corporation shall vary the times so established in this 53 clause for preparation, review, and public hearings to coordinate the 54 economic and social review process with other procedures relating to 55 review and approval or disapproval of an action. An application or 56 authorization for an action upon which a draft economic impact statementA. 2145 4 1 is determined to be required shall not be complete until such draft 2 statement has been filed and accepted by the corporation as satisfactory 3 with respect to scope, content, and adequacy for purposes of this 4 subparagraph. Commencing upon such acceptance, the economic impact 5 statement process shall run concurrently with other procedures relating 6 to the review and approval of the action, so long as reasonable time is 7 provided for preparation, review, and public hearings with respect to 8 the draft economic impact statement. 9 (V) To the extent possible, the economic impact statement prepared 10 pursuant to clause (I) of this subparagraph, together with the comments 11 of public agencies and members of the public, shall be filed with the 12 governing body of each municipality or political subdivision thereof for 13 whose benefit such corporation is established and made available to the 14 public prior to acting on the proposal which is the subject of the 15 economic impact statement. 16 (VI) A corporation may charge a fee to an applicant to recover the 17 costs incurred in preparing or causing to be prepared or reviewing a 18 draft economic impact statement or an economic impact statement on the 19 action which the applicant requests from the corporation; provided, 20 however, that an applicant may not be charged a separate fee for both 21 the preparation and review of such statements. The technical services of 22 the corporation may be made available on a fee basis reflecting the 23 costs thereof to a requesting applicant, which fee or fees may appropri- 24 ately be charged by the corporation to the applicant under rules and 25 regulations, which the corporation shall issue for such purpose. 26 (VII) When a corporation decides to carry out or approve an action 27 which has been the subject of an economic impact statement, it shall 28 make an explicit finding that the requirements of this subparagraph have 29 been met and that, consistent with social, economic, and other essential 30 consideration, to the maximum extent practicable, adverse economic, 31 social, and community effects revealed in the economic impact statement 32 process will be minimized or avoided. 33 (3) Before any sale or lease to a local development corporation incor- 34 porated or reincorporated under this article shall be authorized, a 35 public hearing shall be held by the local legislative body, or [by the36board of estimate], in cities having a population of one million or 37 more, by the community board or boards or the respective borough board, 38 as the case may be, to consider the proposed sale or lease only after 39 the completion of the economic impact statement required by subparagraph 40 two-a of this paragraph. A public hearing may only be convened if two- 41 thirds of the board members are present. If not, such public hearing 42 shall not be convened and shall be rescheduled, subject to the same 43 quorum requirements. 44 § 2. Paragraph (i) of section 1411 of the not-for-profit corporation 45 law is relettered paragraph (j) and a new paragraph (i) is added to read 46 as follows: 47 (i) Municipal input. 48 (1) Board members or employees of a local development corporation must 49 not be or have, within the past five years, been: (A) an employee or an 50 owner of a firm that is a paid advisor or consultant of the local devel- 51 opment corporation, including a present or former independent auditor of 52 the local development corporation; (B) employed by a significant suppli- 53 er of the local development corporation; (C) employed by and had a five 54 percent or greater ownership interest in a supplier where sales to the 55 local development corporation represent more than one percent of the 56 sales of the supplier or more than one percent of the purchases of theA. 2145 5 1 local development corporation; (D) a "political party chairman" as such 2 term is defined in paragraph (k) of subdivision one of section seventy- 3 three of the public officers law; or (E) a lobbyist registered under a 4 state or local law covering any jurisdiction served in whole or in part 5 by the local development corporation. In addition, at least one-third 6 of all members shall be representative of local government, organized 7 labor, or the engineering, business, or environmental communities. 8 (2) The local development corporation shall file an annual report with 9 the attorney general noting the local development corporation's finan- 10 cial activity during each year, including, but not limited to, the 11 amount and the reason for the amount and kinds of financial incentives 12 provided to any entity and any other data that the attorney general may 13 require. The report shall be submitted before February first of each 14 year. Each report shall be made available to the public in an easily 15 accessible format, including but not limited to an electronic version 16 via the world wide web. 17 (3) Any lease, sale, or other revenues collected by the corporation 18 shall be paid to the local governing body in which real property or 19 other source of revenue is located, and proportionally divided if 20 located in more than one municipality. 21 (4) The governing body of each municipality for whose benefit a corpo- 22 ration is established shall have the authority to approve or disapprove 23 any agency use of eminent domain, disposition of corporate property, 24 issuance of bonds, entrance into agreements requiring payments, or 25 entering into agreements for payments in lieu of taxes. Each such 26 governing body shall approve or disapprove any of the above corporate 27 decisions by majority vote. Where applicable in the enactment of local 28 laws, the chief executive officer shall approve or disapprove such 29 governing body's decision, subject to any applicable right to override. 30 Boards shall not violate any local zoning laws, ordinances, or regu- 31 lations or local development plans. Where applicable, the provisions of 32 this subparagraph shall apply to more than one local governing body and 33 the New York job development authority. 34 § 3. Subdivision 2 of section 856 of the general municipal law, as 35 amended by chapter 356 of the laws of 1993, is amended to read as 36 follows: 37 2. An agency shall be a corporate governmental agency, constituting a 38 public benefit corporation. Except as otherwise provided by special act 39 of the legislature, an agency shall consist of not less than three nor 40 more than seven members who shall be appointed by the chief executive 41 officer, with the advice and consent of the local governing body, of 42 each municipality and who shall serve at the pleasure of the appointing 43 authority. [Such members may include representatives of local govern-44ment, school boards, organized labor and business.] At least one-third 45 of all members shall be representative of local government, organized 46 labor, or the engineering, business, or environmental communities. A 47 member shall continue to hold office until his or her successor is 48 appointed and has qualified. The governing body of each municipality 49 shall designate the first [chairman] chairperson and file with the 50 secretary of state a certificate of appointment or reappointment of any 51 member. Such members shall receive no compensation for their services 52 but shall be entitled to the necessary expenses, including traveling 53 expenses, incurred in the discharge of their duties. Members must not 54 be or have, within the past five years, been:A. 2145 6 1 (a) an employee or an owner of a firm that is a paid advisor or 2 consultant of the agency, including a present or former independent 3 auditor of the agency; 4 (b) employed by a significant supplier of the agency; 5 (c) employed by and had a five percent or greater ownership interest 6 in a supplier where sales to the agency represent more than one percent 7 of the sales of the supplier or more than one percent of the purchases 8 of the agency; 9 (d) a "political party chairman" as such term is defined in paragraph 10 (k) of subdivision one of section seventy-three of the public officers 11 law; or 12 (e) a lobbyist registered under a state or local law covering any 13 jurisdiction served in whole or in part by the agency. 14 § 4. Subdivision 15 of section 858 of the general municipal law, as 15 added by chapter 356 of the laws of 1993, is amended to read as follows: 16 (15) To enter into agreements requiring payments in lieu of taxes. 17 Such agreements shall be in writing and in addition to other terms shall 18 contain: the amount due annually to each affected tax jurisdiction (or 19 a formula by which the amount due can be calculated), the name and 20 address of the person, office or agency to which payment shall be deliv- 21 ered, the date on which payment shall be made, and the date on which 22 payment shall be considered delinquent if not paid. Unless otherwise 23 agreed by the affected tax jurisdictions, any such agreement shall 24 provide that payments in lieu of taxes shall be allocated among affected 25 tax jurisdictions in proportion to the amount of real property tax and 26 other taxes which would have been received by each affected tax juris- 27 diction had the project not been tax exempt due to the status of the 28 agency involved in the project. A copy of any such agreement shall be 29 delivered to each affected tax jurisdiction within fifteen days of sign- 30 ing the agreement. In the absence of any such written agreement, 31 payments in lieu of taxes made by an agency shall be allocated in the 32 same proportions as they had been prior to January first, nineteen 33 hundred ninety-three for so long as the agency's activities render a 34 project non-taxable by affected tax jurisdictions. Standard tax 35 exemption policies established in law or by agencies shall be sent annu- 36 ally to chief executives and all members of governing boards of all 37 affected tax jurisdictions. Any changes to the standard tax exemption 38 policies shall also be sent to chief executives and all members of 39 governing boards of affected tax jurisdictions. Standard tax exemption 40 policies shall also be made available to the public and posted on the 41 agency's website. Every agency shall be required to maintain, and make 42 available to all local elected officials and the public, a current sche- 43 dule of all PILOT payments due each year and the amount of each payment 44 allocable to each affected tax jurisdiction on whose behalf the PILOT is 45 being collected. All agencies shall maintain, and make readily avail- 46 able to all local elected officials and the public, current schedules of 47 project owners who are in arrears in the making of required PILOT 48 payments, the amounts involved, and the time periods involved. Every 49 agency must ensure that all PILOT payments are promptly received and 50 fully transmitted to the treasuries of the affected tax jurisdictions on 51 whose behalf those PILOT payments were collected; 52 § 5. The general municipal law is amended by adding a new section 53 858-c to read as follows: 54 § 858-c. Municipal input. 1. The governing body of each municipality 55 for whose benefit an agency is established shall have the authority to 56 approve or disapprove any agency use of eminent domain, disposition ofA. 2145 7 1 agency property, issuance of bonds, entrance into agreements requiring 2 payments, or entering into agreements for payments in lieu of taxes. 3 Each such governing body shall approve or disapprove any of the above 4 agency decisions by majority vote. Where applicable in the enactment of 5 local laws, the chief executive officer shall approve or disapprove such 6 governing body's decision, subject to any applicable right to override. 7 2. Agency boards shall not violate any local zoning laws, ordinances, 8 or regulations or local development plans. 9 § 6. Paragraphs (a) and (b) of subdivision 1 of section 859 of the 10 general municipal law, paragraph (a) as added by chapter 692 of the laws 11 of 1989 and paragraph (b) as amended by chapter 357 of the laws of 1993, 12 are amended to read as follows: 13 (a) Each agency shall maintain books and records in such form as may 14 be prescribed by the state comptroller. The comptroller shall prescribe 15 rules on standardizing the calculation of tax benefits. 16 (b) Within ninety days following the close of its fiscal year, each 17 agency or authority shall prepare a financial statement for that fiscal 18 year in such form as may be prescribed by the state comptroller. Such 19 statement shall be audited within such ninety day period by an independ- 20 ent certified public accountant in accordance with government accounting 21 standards established by the United States general accounting office. 22 The audited financial statement shall include supplemental schedules 23 listing all straight-lease transactions and bonds and notes issued, 24 outstanding or retired during the applicable accounting period whether 25 or not such bonds, notes or transactions are considered obligations of 26 the agency, and information on PILOTs. For each issue of bonds or notes 27 such schedules shall provide the name of each project financed with 28 proceeds of each issue, and whether the project occupant is a not-for- 29 profit corporation, the name and address of each owner of each project, 30 the address of each project, the estimated amount of tax exemptions 31 authorized for each project, the purpose for which each bond or note was 32 issued, date of issue, interest rate at issuance and if variable the 33 range of interest rates applicable, maturity date, federal tax status of 34 each issue, and an estimate of the number of jobs created and retained 35 by each project. For each straight-lease transaction, such schedules 36 shall provide the name of each project, and whether the project occupant 37 is a not-for-profit corporation, the name and address of each owner of 38 each project, the estimated amount of tax exemptions authorized for each 39 project, the purpose for which each transaction was made, the method of 40 financial assistance utilized by the project, other than the tax 41 exemptions claimed by the project and an estimate of the number of jobs 42 created and retained by each project. 43 § 7. Section 859-a of the general municipal law, as added by chapter 44 356 of the laws of 1993, and subdivisions 4, 5 and 6 as added by chapter 45 563 of the laws of 2015, is amended to read as follows: 46 § 859-a. Additional prerequisites to the provisions of financial 47 assistance, economic impact statements and public hearings. Prior to 48 providing any financial assistance of more than one hundred thousand 49 dollars to any project, the agency must comply with the following 50 prerequisites: 51 1. The agency must adopt a resolution describing the project and the 52 financial assistance that the agency is contemplating with respect to 53 such project. Agencies must maintain a list of all pending projects 54 about which they have been contacted, and make such lists available for 55 public inspection, including but not limited to publishing the lists on 56 the agency's website. If any person requests more information about aA. 2145 8 1 particular project, the agency shall provide such information as expe- 2 ditiously as possible. Such assistance shall be consistent with the 3 uniform tax exemption policy adopted by the agency pursuant to subdivi- 4 sion four of section eight hundred seventy-four of this [chapter] title, 5 unless the agency has followed the procedures for deviation from such 6 policy specified in paragraph (b) of such subdivision. Such assistance 7 shall also be consistent with environmental protection, such as open 8 space protection, that will promote new development patterns in order to 9 take advantage of resources and opportunities, such as existing public 10 sewer and water infrastructure, without compromising the needs of future 11 generations; and labor protection, including all federal, state, and 12 local labor laws, rules, or regulations. The agency shall not grant or 13 appropriate assistance to any entity that has committed violations of 14 any federal, state, or local laws. 15 2. The agency shall prepare (where the applicant does not prepare the 16 economic impact statement), or cause to be prepared by contract or 17 otherwise, an economic impact statement on any action that it proposes 18 or approves which may have a significant effect on the affected local 19 economy and local community. The agency shall use all practicable means 20 to realize the policies and goals set forth in this article, and shall 21 act and choose alternatives which, consistent with social, economic, and 22 other essential considerations, to the maximum extent practicable, mini- 23 mize or avoid adverse economic effects, including effects revealed in 24 the economic impact statement process. Such a statement shall include a 25 detailed statement setting forth the following: 26 (a) a description of the proposed action and its economic and social 27 setting; 28 (b) the economic and social impact of the proposed action, including 29 short-term and long-term effects, especially to the affected community; 30 (c) any adverse economic effects which cannot be avoided should the 31 proposal be implemented; 32 (d) alternatives to the proposed action; 33 (e) any irreversible and irretrievable commitments and social 34 resources which would be involved in the proposed action, should it be 35 implemented; 36 (f) mitigation measures proposed to minimize the economic, social or 37 other essential impacts; and 38 (g) the growth-inducing aspects of the proposed action, where applica- 39 ble and significant. 40 Such a statement shall also include copies or a summary of the 41 substantive comments received by the agency pursuant to subdivision six 42 of this section, and the agency response to such comments. The purpose 43 of an economic impact statement is to provide detailed information about 44 the effect which a proposed action is likely to have on the economy, 45 employment conditions, and social characteristics of a community, to 46 list ways in which any adverse effects of such an action might be mini- 47 mized, and to suggest alternatives to such an action so as to form the 48 basis for a decision as to whether or not to undertake or approve such 49 action. Such statement shall be clearly written in a concise manner 50 capable of being read and understood by the public, shall deal with the 51 specific significant economic impacts which can be reasonably antic- 52 ipated, and shall not contain more detail than is appropriate, consider- 53 ing the nature and magnitude of the proposed action and the significance 54 of its potential impacts. 55 3. The agency may require an applicant to submit an economic report to 56 assist the agency in carrying out its responsibilities, including theA. 2145 9 1 initial determination and, (where the applicant does not prepare the 2 economic impact statement), the preparation of an economic impact state- 3 ment under this article. The agency may request such other information 4 from an applicant necessary for the review of economic and social 5 impacts. Notwithstanding any use of outside resources or work, agencies 6 shall make their own independent judgment of the scope, contents, and 7 adequacy of an economic impact statement. 8 4. (a) As early as possible in the formulation of a proposal for an 9 action, the agency shall make an initial determination as to whether or 10 not an economic impact statement need be prepared for the action. With 11 respect to actions involving the issuance to an applicant of a permit or 12 other entitlement, the agency shall notify the applicant in writing of 13 its initial determination, specifying therein the basis for such deter- 14 mination. Notice of the initial determination, along with appropriate 15 supporting findings on agency actions, shall be kept on file in the main 16 office of the agency for public inspection. If the agency determines 17 that such statement is required, the agency or the applicant, at the 18 applicant's option, shall prepare or cause to be prepared a draft 19 economic impact statement. If the applicant does not exercise the 20 option to prepare such statement, the agency shall prepare it, cause it 21 to be prepared, or terminate its review of the proposed action. Such 22 statement shall describe the proposed action and reasonable alternatives 23 to the action, and briefly discuss, on the basis of information then 24 available, the remaining items required to be submitted by subdivision 25 two of this section. The purpose of a draft economic statement is to 26 relate economic and social considerations to the inception of the plan- 27 ning process, to inform the public and other public agencies as early as 28 possible about proposed actions that may significantly affect the quali- 29 ty of the economic and social conditions, and to solicit comments which 30 will assist the agency in the decision making process in determining the 31 economic and social consequences of the proposed action. The draft 32 statement shall resemble in form and content the economic impact state- 33 ment to be prepared after comments have been received and considered 34 pursuant to subdivision two of this section; however, that the length 35 and detail of the draft economic statement will necessarily reflect the 36 preliminary nature of the proposal and the early stage at which it is 37 prepared; 38 (b) The draft statement shall be filed with the appropriate governing 39 body of each municipality for whose benefit such agency is established. 40 5. (a) After the filing of a draft economic impact statement, the 41 agency shall determine whether or not to conduct a public hearing on the 42 economic impact of the proposed action. Such public hearing shall be 43 held in a city, town, or village where the project is proposed to be 44 located. The agency must give at least thirty days' published notice of 45 such public hearing and shall, at the same time, provide notice of such 46 hearing to the chief executive officer of each affected tax jurisdiction 47 within which the project is proposed to be located. The notice of hear- 48 ing must state the time and place of the hearing, contain a general, 49 functional description of the project, describe the prospective location 50 of the project, identify the initial owner, operator, or manager of the 51 project, generally describe the financial assistance contemplated by the 52 agency with respect to the project, and provide an opportunity for the 53 public to review the project application, which shall include an analy- 54 sis of the costs and benefits of the proposed project. The notice of 55 hearing must be published in the state register and the website of the 56 agency.A. 2145 10 1 (b) If the agency determines to hold such a hearing, it shall commence 2 the hearing within sixty days of the filing and, unless the proposed 3 action is withdrawn from consideration, shall prepare the economic 4 impact statement within forty-five days after the close of the hearing, 5 except as otherwise provided. The need for such a hearing shall be 6 determined in accordance with procedures adopted by the agency pursuant 7 to section eight hundred fifty-eight of this title. If no hearing is 8 held, the agency shall prepare and make available the economic impact 9 statement within sixty days after the filing of the draft, except as 10 otherwise provided. 11 (c) Notwithstanding the specified time periods established by this 12 article, an agency shall vary the times so established herein for prepa- 13 ration, review and public hearings to coordinate the economic and social 14 review process with other procedures relating to review and approval of 15 an action. An application or authorization for an action upon which a 16 draft economic impact statement is determined to be required shall not 17 be complete until such draft statement has been filed and accepted by 18 the agency as satisfactory with respect to scope, content, and adequacy 19 for purposes of subdivision four of this section. Commencing upon such 20 acceptance, the economic impact statement process shall run concurrently 21 with other procedures relating to the review and approval of the action, 22 so long as reasonable time is provided for preparation, review, and 23 public hearings with respect to the draft economic impact statement. 24 6. To the extent possible, the economic impact statement prepared 25 pursuant to subdivision two of this section, together with the comments 26 of public agencies and members of the public, shall be filed with the 27 governing body of each municipality for whose benefit such agency is 28 established and made available to the public prior to acting on the 29 proposal which is the subject of the economic impact statement. 30 7. An agency may charge a fee to an applicant to recover the costs 31 incurred in preparing or causing to be prepared or reviewing a draft 32 economic impact statement or an economic impact statement on the action 33 which the applicant requests from the agency; provided, however, that an 34 applicant may not be charged a separate fee for both the preparation and 35 review of such statements. The technical services of the agency may be 36 made available on a fee basis reflecting the costs thereof to a request- 37 ing agency, which fee or fees may appropriately be charged by the agency 38 to the applicant under rules and regulations to be issued by the agency 39 for such purpose under section eight hundred fifty-eight of this title. 40 8. When an agency decides to carry out or approve an action which has 41 been the subject of an economic impact statement, it shall make an 42 explicit finding that the requirements of this section have been met and 43 that, consistent with social, economic, and other essential consider- 44 ations, to the maximum extent practicable, adverse economic, social, and 45 community effects revealed in the economic impact statement process will 46 be minimized or avoided. 47 9. The agency [must] shall hold a public hearing with respect to the 48 project and the proposed financial assistance being contemplated by the 49 agency after the completion of the final economic impact statement. 50 [Said] Such public hearing shall be held in a city, town, or village 51 where the project [proposes] is proposed to [locate] be located. At 52 [said] such public hearing, interested parties shall be provided reason- 53 able opportunity, both orally and in writing, to present their views 54 with respect to the project and the final economic impact statement. A 55 public hearing may only be convened if two-thirds of the board membersA. 2145 11 1 are present. If not, such public hearing shall not be convened and shall 2 be rescheduled, subject to the same quorum requirements. 3 [3.] 10. The agency must give at least ten days published notice of 4 [said] such public hearing and shall, at the same time, provide notice 5 of such hearing to the chief executive officer of each affected tax 6 jurisdiction within which the project is located. The notice of hearing 7 must state the time and place of the hearing, contain a general, func- 8 tional description of the project, describe the prospective location of 9 the project, identify the initial owner, operator, or manager of the 10 project, and generally describe the financial assistance contemplated by 11 the agency with respect to the project. The notice of hearing must be 12 published in the state register and the website of the agency. Such 13 assistance shall also be consistent with environmental protection, such 14 as open space protection, that will promote new development patterns in 15 order to take advantage of resources and opportunities, such as existing 16 public sewer and water infrastructure, without compromising the needs of 17 future generations; and labor protection, including all federal, state, 18 and local labor laws, rules or regulations. The agency shall not grant 19 or appropriate assistance to any entity that has committed violations of 20 any federal, state, or local laws. 21 [4.] 11. Each agency shall develop a standard application form, which 22 shall be used by the agency to accept requests for financial assistance 23 from all individuals, firms, companies, developers or other entities or 24 organizations. The standard application form shall be submitted by or on 25 behalf of the applicant, and subscribed and affirmed under the penalties 26 of perjury by the applicant, or on behalf of the applicant by the chief 27 executive officer or such other individual that is duly authorized to 28 bind the applicant, as true, accurate and complete to the best of his or 29 her knowledge. The standard application form shall include the follow- 30 ing, and may include such other supplemental information as determined 31 to be necessary and appropriate by the agency, including supporting 32 documents and information provided by or on behalf of the applicant: 33 (a) the name and address of the project applicant; 34 (b) a description of the proposed project for which financial assist- 35 ance is requested, including the type of project, proposed location and 36 purpose of the project; 37 (c) the amount and type of financial assistance being requested, 38 including the estimated value of each type of tax exemption sought to be 39 claimed by reason of agency involvement in the project; 40 (d) a statement that there is a likelihood that the project would not 41 be undertaken but for the financial assistance provided by the agency 42 or, if the project could be undertaken without financial assistance 43 provided by the agency, a statement indicating why the project should be 44 undertaken by the agency; 45 (e) an estimate of capital costs of the project, including all costs 46 of real property and equipment acquisition and building construction or 47 reconstruction, financed from private sector sources, an estimate of the 48 percentage of project costs financed from public sector sources, and an 49 estimate of both the amount to be invested by the applicant and the 50 amount to be borrowed to finance the project. 51 (f) the projected number of full time equivalent jobs that would be 52 retained and that would be created if the request for financial assist- 53 ance is granted, the projected timeframe for the creation of new jobs, 54 the estimated salary and fringe benefit averages or ranges for catego- 55 ries of the jobs that would be retained or created if the request for 56 financial assistance is granted, and an estimate of the number of resi-A. 2145 12 1 dents of the economic development region as established pursuant to 2 section two hundred thirty of the economic development law or the labor 3 market area as defined by the agency, in which the project is located 4 that would fill such jobs. The labor market area defined by the agency 5 for this purpose may include no more than six contiguous counties in the 6 state, including the county in which the project is to be located; 7 (g) a statement to the effect that the provisions of subdivision one 8 of section eight hundred sixty-two of this [chapter] title will not be 9 violated if financial assistance is provided for the proposed project; 10 (h) a statement that the owner, occupant or operator receiving finan- 11 cial assistance is in substantial compliance with applicable local, 12 state and federal tax, worker protection and environmental laws, rules 13 and regulations; and 14 (i) a statement acknowledging that the submission of any knowingly 15 false or knowingly misleading information may lead to the immediate 16 termination of any financial assistance and the reimbursement of an 17 amount equal to all or part of any tax exemptions claimed by reason of 18 agency involvement in the project. 19 [5.] 12. Each agency shall develop, and adopt by resolution, uniform 20 criteria for the evaluation and selection for each category of projects 21 for which financial assistance will be provided. At a minimum, the 22 criteria shall require that, for each project, the following must occur 23 prior to the approval of the provision of financial assistance: 24 (a) an assessment by the agency of all material information included 25 in connection with the application for financial assistance, as neces- 26 sary to afford a reasonable basis for the decision by the agency to 27 provide financial assistance for the project; 28 (b) a written cost-benefit analysis by the agency that identifies the 29 extent to which a project will create or retain permanent, private 30 sector jobs; the estimated value of any tax exemptions to be provided; 31 the amount of private sector investment generated or likely to be gener- 32 ated by the proposed project; the likelihood of accomplishing the 33 proposed project in a timely fashion; and the extent to which the 34 proposed project will provide additional sources of revenue for munici- 35 palities and school districts; and any other public benefits that might 36 occur as a result of the project; 37 (c) a statement by the applicant that the project, as of the date of 38 the application, is in substantial compliance with all provisions of 39 this article including, but not limited to, the provisions of this 40 section and subdivision one of section eight hundred sixty-two of this 41 [chapter] title; and 42 (d) if the project involves the removal or abandonment of a facility 43 or plant within the state, notification by the agency to the chief exec- 44 utive officer or officers of the municipality or municipalities in which 45 the facility or plant was located. 46 [6.] 13. Each agency shall develop a uniform agency project agreement 47 that sets forth terms and conditions under which financial assistance 48 shall be provided. The uniform agency project agreement shall be used by 49 the agency and no financial assistance shall be provided in the absence 50 of the execution of such an agreement. The uniform agency project agree- 51 ment shall, at a minimum: 52 (a) describe the project and the financial assistance, including the 53 amount and type, to be provided, and the agency purpose to be achieved; 54 (b) require each project owner, occupant or operator receiving finan- 55 cial benefits to provide annually a certified statement and documenta- 56 tion: (i) enumerating the full time equivalent jobs retained and theA. 2145 13 1 full time equivalent jobs created as a result of the financial assist- 2 ance, by category, including full time equivalent independent contrac- 3 tors or employees of independent contractors that work at the project 4 location, and (ii) indicating that the salary and fringe benefit aver- 5 ages or ranges for categories of jobs retained and jobs created that was 6 provided in the application is still accurate and if it is not still 7 accurate, providing a revised list of salary and fringe benefit averages 8 or ranges for categories of jobs retained and jobs created. 9 (c) indicate the dates when PILOT payments are to be made and provide 10 an estimate of the amounts for each affected tax jurisdiction of any 11 payments in lieu of taxes that are included as part of the transaction, 12 or formula or formulas by which those amounts may be calculated. In lieu 13 of providing such information, a copy of an executed payment in lieu of 14 tax agreement that contains the same information may be attached to the 15 uniform agency project agreement; 16 [(e)] (d) provide for the suspension or discontinuance of financial 17 assistance, or for the modification of any payment in lieu of tax agree- 18 ment to require increased payments, in accordance with policies devel- 19 oped by the agency pursuant to section eight hundred seventy-four of 20 this title; 21 [(f)] (e) provide for the return of all or a part of the financial 22 assistance provided for the project, including all or part of the amount 23 of any tax exemptions, which shall be redistributed to the appropriate 24 affected tax jurisdiction, as provided for in policies developed by the 25 agency pursuant to section eight hundred seventy-four of this title, 26 unless agreed to otherwise by any local taxing jurisdiction or jurisdic- 27 tions; and 28 [(g)] (f) provide that the owner, occupant or operator receiving 29 financial assistance shall certify, under penalty of perjury, that it is 30 in substantial compliance with all local, state and federal tax, worker 31 protection and environmental laws, rules and regulations. 32 § 8. Section 860 of the general municipal law, as added by chapter 33 1030 of the laws of 1969, is amended to read as follows: 34 § 860. Moneys of the agency. The agency shall have power to contract 35 with the holders of any of its bonds or notes as to the custody, 36 collection, securing, investment and payment of any moneys of the agency 37 or any moneys held in trust or otherwise for the payment of bonds or 38 notes or in any way to secure bonds or notes and to carry out any such 39 contract. Moneys held in trust or otherwise for the payment of bonds or 40 notes or in any way to secure bonds or notes and deposits of such moneys 41 may be secured in the same manner as moneys of the agency, and all banks 42 and trust companies are authorized to give such security for such depos- 43 its. Any lease payments, revenues, or other earnings of the agency 44 shall be paid to the local governing body of the municipality for whose 45 benefit such agency is established. 46 § 9. Section 882 of the general municipal law, as amended by chapter 47 373 of the laws of 2012, is amended and a new section 882-a is added to 48 read as follows: 49 § 882. Termination of the agency. Whenever all of the bonds or notes 50 issued by the agency shall have been redeemed or cancelled, and all 51 straight-lease transactions have been terminated, the agency shall cease 52 to exist and all rights, titles, and interest and all obligations and 53 liabilities thereof vested in or possessed by the agency shall thereupon 54 vest in and be possessed by the municipality. After October first, two 55 thousand twenty-three, non-county industrial development agenciesA. 2145 14 1 created under title two of this article shall not be able to issue any 2 further bonds or notes. 3 § 882-a. Prohibition of local industrial development agencies. No 4 further industrial development agencies may be created unless they are a 5 county-wide industrial development agency. 6 § 10. The general municipal law is amended by adding two new sections 7 885 and 885-a to read as follows: 8 § 885. Prevailing wage. Whenever a recipient of industrial develop- 9 ment agency funds, financial assistance, or other benefit enters into 10 any contract, subcontract, lease, grant, bond, covenant or other agree- 11 ment for or in connection with any construction, demolition, recon- 12 struction, excavation, rehabilitation, repair, renovation, alteration, 13 or improvement project, such project shall be deemed to be a public 14 works project for the purposes of article eight of the labor law, and 15 all of the provisions of article eight of the labor law shall be appli- 16 cable to all the work involved in the construction, demolition, recon- 17 struction, excavation, rehabilitation, repair, renovation, alteration, 18 or improvement of such project. Funds, financial assistance, or any 19 other benefits provided pursuant to this article shall not be utilized 20 for or in connection with the construction, demolition, reconstruction, 21 excavation, rehabilitation, repair, renovation, alteration, or improve- 22 ment of any project to which the provisions of article eight of the 23 labor law are not applicable. 24 § 885-a. Recapture. If a recipient entity of agency assistance does 25 not abide by any provision of this article or requirement made applica- 26 ble pursuant to the authority of this article, it shall pay back to the 27 agency that fraction of developmental assistance that accrued to its 28 benefit for the calendar year in which the benefit occurred, plus inter- 29 est at a rate determined by the granting agency. For one-time forms of 30 assistance such as grants or land price discounts, a defaulting entity 31 shall pay back to the granting agency one-fifth of the value of assist- 32 ance. Remittance of the payback by a recipient entity to a granting 33 agency shall take place within sixty calendar days of the delivery of 34 the default notice to the recipient entity. 35 § 11. This act shall take effect on the sixtieth day after it shall 36 have become a law; provided, however, that the provisions of section 37 seven of this act shall take effect immediately.
