Bill Text: NY A06793 | 2019-2020 | General Assembly | Introduced

Bill Title: Enacts the "corporate and financial accountability act" to provide for accountability for recipients of publicly funded economic development assistance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-20 - referred to economic development [A06793 Detail]

Download: New_York-2019-A06793-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     March 20, 2019
        Introduced  by M. of A. ORTIZ -- read once and referred to the Committee
          on Economic Development
        AN ACT to amend the economic development law, in  relation  to  enacting
          the "corporate and financial accountability act"
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "corporate and financial accountability act".
     3    §  2.  The economic development law is amended by adding a new article
     4  4-D to read as follows:
     5                                  ARTICLE 4-D
     7  Section 147. Legislative declaration.
     8          148. Definitions.
     9          149. Financial incentives accountability.
    10    § 147. Legislative declaration. The legislature seeks to  ensure  that
    11  recipients  of  publicly funded economic development assistance are held
    12  accountable for the attainment of agreed  upon  performance  objectives,
    13  through a requirement for the repayment of assistance if such objectives
    14  are not met.
    15    §  148.  Definitions.  For the purposes of this article, the following
    16  terms shall have the following meanings as indicated:
    17    1. "Agency" shall mean any agency, department, board, bureau,  commis-
    18  sion  a  majority  of whose members are appointed by the governor, divi-
    19  sion, office, council, committee, or officer of the state, or the  state
    20  university of New York or the city university of New York, or any public
    21  benefit corporation or public authority, a majority of whose members are
    22  appointed  by the governor, the state, any of its political subdivisions
    23  or instrumentality of the state or its political  subdivisions,  or  any
    24  public  benefit  corporation  as  defined in subdivision four of section
    25  sixty-six of the general construction law, or any municipal  corporation
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 6793                             2
     1  as defined in subdivision three of section three-a of the general munic-
     2  ipal law.
     3    2.  "Economic development contract" shall mean any contract, agreement
     4  or understanding between  an  agency  and  a  recipient,  providing  for
     5  awards, grants, loans, tax abatements or other business incentives.
     6    3.  "Recipient" shall mean a person, firm, partnership, company, asso-
     7  ciation  or  corporation  which  enters  into  an  economic  development
     8  contract with an agency.
     9    4.  "Applicant"  shall  mean any entity filing any application with an
    10  agency to become a recipient.
    11    5. "Award" shall mean any award, grant of financial assistance,  loan,
    12  tax abatement or other business incentive.
    13    §  149.  Financial  incentives  accountability.  1.  Every agency that
    14  enters into economic development contracts shall establish and implement
    15  a financial accountability policy which shall at minimum require:
    16    a. applicants to file information with an agency during  the  applica-
    17  tion process for qualification as a recipient of an economic development
    18  contract  which  shall include such applicant's record of performance in
    19  contributing to job  retention  and  creation,  economic  stability  and
    20  community  revitalization,  and  any criminal convictions, violations or
    21  pending investigations regarding occupational safety and  health  stand-
    22  ards, equal employment opportunity credits and environmental standards;
    23    b.  the repayment, with interest, of awards or a portion thereof, upon
    24  a finding that the recipient has not fully executed  and  completed  the
    25  stated  purpose  or  objective of the award. Upon a written finding that
    26  the repayment of the award is unable to  be  fulfilled  due  to  circum-
    27  stances  beyond  the control of the recipient, the award may be excused,
    28  in whole or in part, by the agency; and
    29    c. in the event that a recipient fails to repay an award and is  found
    30  to  have  been subject to a previous repayment pursuant to this article,
    31  such applicant shall be ineligible to receive an award from  the  agency
    32  for not less than five years following the date of last repayment.
    33    2.  Each  agency that enters into economic development contracts shall
    34  file with the department a certified copy of  their  financial  account-
    35  ability policy promulgated pursuant to this article.
    36    3.  In  the  event that a recipient fails to repay an award the agency
    37  shall inform the department which shall maintain a listing thereof.  The
    38  department shall then make an annual report to the speaker of the assem-
    39  bly and the temporary president of the senate on the first day of  March
    40  with  respect  to  all recipients, to date, that have failed to repay an
    41  award.
    42    4. Every agency  which  enters  into  economic  development  contracts
    43  shall,  in the course of implementing the policy promulgated pursuant to
    44  this article, report any information regarding a recipient's  record  of
    45  performance  in  contributing  to  job  retention and creation, economic
    46  stability and community revitalization, and  any  criminal  convictions,
    47  violations  or pending investigations regarding safety and health stand-
    48  ards, equal opportunity employment credits and  environmental  standards
    49  to the appropriate department for assessment and review.
    50    § 3. This act shall take effect on the one hundred twentieth day after
    51  it  shall have become a law. Effective immediately, the addition, amend-
    52  ment and/or repeal of any rule or regulation necessary for the implemen-
    53  tation of this act on its effective date are authorized and directed  to
    54  be made and completed on or before such effective date.