Bill Text: NY A07576 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to industrial development agencies; provisions relating to such agencies' representation, public hearings, notices of agenda, and school board reporting.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-01-08 - referred to local governments [A07576 Detail]

Download: New_York-2019-A07576-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          7576

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                       May 9, 2019
                                       ___________

        Introduced  by  M. of A. RYAN -- read once and referred to the Committee
          on Local Governments

        AN ACT to amend the general municipal law,  in  relation  to  industrial
          development agencies

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 854 of the general  municipal  law  is  amended  by
     2  adding a new subdivision 21 to read as follows:
     3    (21)  "Labor organization" -- shall mean any organization which exists
     4  and is constituted for the purpose, in whole or in part,  of  collective
     5  bargaining, or of dealing with employers concerning grievances, terms or
     6  conditions of employment, or of other mutual aid or protection and which
     7  is not a company union.
     8    §  2.  Subdivision  2  of section 856 of the general municipal law, as
     9  amended by chapter 356 of the laws  of  1993,  is  amended  to  read  as
    10  follows:
    11    2.  An agency shall be a corporate governmental agency, constituting a
    12  public benefit corporation. Except as otherwise provided by special  act
    13  of  the  legislature, an agency shall consist of not less than three nor
    14  more than seven members who shall be appointed by the governing body  of
    15  each  municipality and who shall serve at the pleasure of the appointing
    16  authority. Such members [may] shall include [representatives]  at  least
    17  one representative of [local government,] a local labor organization and
    18  at  least one school [boards, organized labor and business] board member
    19  of a school district within the jurisdiction of the agency.    A  member
    20  shall  continue  to hold office until his successor is appointed and has
    21  qualified. The governing body of each municipality shall  designate  the
    22  first  chairman  and  file  with the secretary of state a certificate of
    23  appointment or reappointment of any member. Such members  shall  receive
    24  no  compensation  for their services but shall be entitled to the neces-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10067-05-9

        A. 7576                             2

     1  sary expenses, including traveling expenses, incurred in  the  discharge
     2  of their duties.
     3    §  3.  Section 859-a of the general municipal law, as added by chapter
     4  356 of the laws of 1993 and subdivisions 4, 5 and 6 as added by  chapter
     5  563 of the laws of 2015, is amended to read as follows:
     6    §  859-a.  Additional  prerequisites  to  the  provisions of financial
     7  assistance or payments in lieu of taxes. Prior to providing  any  finan-
     8  cial  assistance  or  payments in lieu of taxes of more than one hundred
     9  thousand dollars to any project, the agency must comply with the follow-
    10  ing prerequisites:
    11    1. The agency must adopt a resolution describing the project  and  the
    12  financial  assistance  or  payments  in lieu of taxes that the agency is
    13  contemplating with respect to such project. Such assistance or  payments
    14  in  lieu  of  taxes  shall  be consistent with the uniform tax exemption
    15  policy adopted by the agency pursuant to  subdivision  four  of  section
    16  eight  hundred  seventy-four  of  this  chapter,  unless  the agency has
    17  followed the procedures for deviation  from  such  policy  specified  in
    18  paragraph (b) of such subdivision.
    19    2.  The  agency must hold a public hearing with respect to the project
    20  and the proposed financial assistance or payments in lieu of taxes being
    21  contemplated by the agency. Said public hearing shall be held in a city,
    22  town or village where the project proposes to  locate.  At  said  public
    23  hearing,  interested  parties  shall be provided reasonable opportunity,
    24  both orally and in writing, to present their views with respect  to  the
    25  project.
    26    3.  The  agency  must  give at least ten days published notice of said
    27  public hearing and shall, at the same time, provide notice of such hear-
    28  ing to the chief executive officer of  each  affected  tax  jurisdiction
    29  within  which  the  project is located, each school board of each school
    30  district within which the project is located, and to all state  senators
    31  and  members  of  the  state  assembly  who represent any portion of any
    32  affected tax jurisdiction that is  subject  to  the  proposed  financial
    33  assistance  or  payments  in  lieu  of taxes. The notice of hearing must
    34  state the time and place of the hearing, contain a  general,  functional
    35  description  of  the  project,  describe the prospective location of the
    36  project, identify the initial owner, operator or manager of the  project
    37  and  generally  describe the financial assistance or payments in lieu of
    38  taxes contemplated by the agency with respect to the project.
    39    4. Each agency shall develop a standard application form, which  shall
    40  be  used  by  the  agency to accept requests for financial assistance or
    41  payments in lieu of taxes from all individuals, firms, companies, devel-
    42  opers or other entities or organizations. The standard application  form
    43  shall  be submitted by or on behalf of the applicant, and subscribed and
    44  affirmed under the penalties of perjury by the applicant, or  on  behalf
    45  of the applicant by the chief executive officer or such other individual
    46  that  is  duly  authorized  to bind the applicant, as true, accurate and
    47  complete to the best of his or her knowledge. The  standard  application
    48  form  shall  include  the  following, and may include such other supple-
    49  mental information as determined to be necessary and appropriate by  the
    50  agency, including supporting documents and information provided by or on
    51  behalf of the applicant:
    52    (a) the name and address of the project applicant;
    53    (b)  a description of the proposed project for which financial assist-
    54  ance or payments in lieu of taxes is requested, including  the  type  of
    55  project, proposed location and purpose of the project;

        A. 7576                             3

     1    (c) the amount and type of financial assistance or payments in lieu of
     2  taxes being requested, including the estimated value of each type of tax
     3  exemption  sought  to  be claimed by reason of agency involvement in the
     4  project;
     5    (d)  a statement that there is a likelihood that the project would not
     6  be undertaken but for the financial assistance or payments  in  lieu  of
     7  taxes  provided  by  the  agency  or, if the project could be undertaken
     8  without financial assistance or payments in lieu of  taxes  provided  by
     9  the  agency, a statement indicating why the project should be undertaken
    10  by the agency;
    11    (e) an estimate of capital costs of the project, including  all  costs
    12  of  real property and equipment acquisition and building construction or
    13  reconstruction, financed from private sector sources, an estimate of the
    14  percentage of project costs financed from public sector sources, and  an
    15  estimate  of  both  the  amount  to be invested by the applicant and the
    16  amount to be borrowed to finance the project[.];
    17    (f) the projected number of full time equivalent jobs  that  would  be
    18  retained  and that would be created if the request for financial assist-
    19  ance or payments in lieu of taxes is granted,  the  projected  timeframe
    20  for  the  creation  of new jobs, the estimated salary and fringe benefit
    21  averages or ranges for categories of the jobs that would be retained  or
    22  created  if  the request for financial assistance or payments in lieu of
    23  taxes is granted, and an estimate of the  number  of  residents  of  the
    24  economic  development  region  as  established  pursuant  to section two
    25  hundred thirty of the economic development law or the labor market  area
    26  as  defined  by  the  agency, in which the project is located that would
    27  fill such jobs. The labor market area defined by  the  agency  for  this
    28  purpose  may  include no more than six contiguous counties in the state,
    29  including the county in which the project is to be located;
    30    (g) a statement to the effect that the provisions of  subdivision  one
    31  of  section eight hundred sixty-two of this chapter will not be violated
    32  if financial assistance or payments in lieu of taxes is provided for the
    33  proposed project;
    34    (h) a statement that the owner, occupant or operator receiving  finan-
    35  cial  assistance  or payments in lieu of taxes is in substantial compli-
    36  ance with applicable local, state and federal tax, worker protection and
    37  environmental laws, rules and regulations; and
    38    (i) a statement acknowledging that the  submission  of  any  knowingly
    39  false  or  knowingly  misleading  information  may lead to the immediate
    40  termination of any financial assistance or payments in lieu of taxes and
    41  the reimbursement of  an  amount  equal  to  all  or  part  of  any  tax
    42  exemptions claimed by reason of agency involvement in the project.
    43    5.  Each agency shall develop, and adopt by resolution, uniform crite-
    44  ria for the evaluation and selection for each category of  projects  for
    45  which  financial  assistance  or  payments  in  lieu  of  taxes  will be
    46  provided. At a minimum,  the  criteria  shall  require  that,  for  each
    47  project, the following must occur prior to the approval of the provision
    48  of financial assistance or payments in lieu of taxes:
    49    (a)  an  assessment by the agency of all material information included
    50  in connection with the application for financial assistance or  payments
    51  in  lieu  of  taxes,  as  necessary to afford a reasonable basis for the
    52  decision by the agency to provide financial assistance  or  payments  in
    53  lieu of taxes for the project;
    54    (b)  a written cost-benefit analysis by the agency that identifies the
    55  extent to which a project  will  create  or  retain  permanent,  private
    56  sector  jobs;  the estimated value of any tax exemptions to be provided;

        A. 7576                             4

     1  the amount of private sector investment generated or likely to be gener-
     2  ated by the  proposed  project;  the  likelihood  of  accomplishing  the
     3  proposed  project  in  a  timely  fashion;  and  the extent to which the
     4  proposed  project will provide additional sources of revenue for munici-
     5  palities and school districts; and any other public benefits that  might
     6  occur as a result of the project;
     7    (c)  a  statement by the applicant that the project, as of the date of
     8  the application, is in substantial compliance  with  all  provisions  of
     9  this  article  including,  but  not  limited  to, the provisions of this
    10  section and subdivision one of section eight hundred sixty-two  of  this
    11  chapter; and
    12    (d)  if  the project involves the removal or abandonment of a facility
    13  or plant within the state, notification by the agency to the chief exec-
    14  utive officer or officers of the municipality or municipalities in which
    15  the facility or plant was located.
    16    6. Each agency shall develop a uniform agency project  agreement  that
    17  sets  forth  terms  and  conditions  under which financial assistance or
    18  payments in lieu of taxes shall be provided. The uniform agency  project
    19  agreement  shall  be  used  by the agency and no financial assistance or
    20  payments in lieu of taxes shall  be  provided  in  the  absence  of  the
    21  execution  of  such  an  agreement. The uniform agency project agreement
    22  shall, at a minimum:
    23    (a) describe the project and the financial assistance or  payments  in
    24  lieu  of  taxes,  including the amount and type, to be provided, and the
    25  agency purpose to be achieved;
    26    (b) require each project owner, occupant or operator receiving  finan-
    27  cial  benefits or payments in lieu of taxes to provide annually a certi-
    28  fied statement and documentation:  (i) enumerating the full time  equiv-
    29  alent  jobs  retained  and  the  full  time equivalent jobs created as a
    30  result of the financial assistance or payments  in  lieu  of  taxes,  by
    31  category,  including  full  time  equivalent  independent contractors or
    32  employees of independent contractors that work at the project  location,
    33  and (ii) indicating that the salary and fringe benefit averages or rang-
    34  es for categories of jobs retained and jobs created that was provided in
    35  the  application  is  still  accurate  and  if it is not still accurate,
    36  providing a revised list of salary and fringe benefit averages or ranges
    37  for categories of jobs retained and jobs created[.];
    38    (c) indicate the dates when PILOT payments are to be made and  provide
    39  an  estimate  of  the  amounts for each affected tax jurisdiction of any
    40  payments in lieu of taxes that are included as part of the  transaction,
    41  or formula or formulas by which those amounts may be calculated. In lieu
    42  of  providing such information, a copy of an executed payment in lieu of
    43  tax agreement that contains the same information may be attached to  the
    44  uniform agency project agreement;
    45    (e)  provide for the suspension or discontinuance of financial assist-
    46  ance or payments in lieu of  taxes,  or  for  the  modification  of  any
    47  payment  in  lieu  of  tax  agreement  to require increased payments, in
    48  accordance with policies developed by the  agency  pursuant  to  section
    49  eight hundred seventy-four of this title;
    50    (f)  provide  for the return of all or a part of the financial assist-
    51  ance or payments in lieu of taxes provided for  the  project,  including
    52  all  or  part of the amount of any tax exemptions, which shall be redis-
    53  tributed to the appropriate affected tax jurisdiction, as  provided  for
    54  in  policies  developed  by the agency pursuant to section eight hundred
    55  seventy-four of this title, unless agreed  to  otherwise  by  any  local
    56  taxing jurisdiction or jurisdictions; and

        A. 7576                             5

     1    (g)  provide  that the owner, occupant or operator receiving financial
     2  assistance or payments in lieu of taxes shall certify, under penalty  of
     3  perjury,  that it is in substantial compliance with all local, state and
     4  federal tax, worker protection and environmental laws, rules  and  regu-
     5  lations.
     6    §  4.  The  general  municipal  law is amended by adding a new section
     7  859-c to read as follows:
     8    § 859-c. Notice of agenda. A printed calendar of items  to  be  heard,
     9  which  may be subject to later amendment, shall be made available to the
    10  public and forwarded to the  members  and  chairman  of  the  industrial
    11  development  agency at least three days in advance of the meeting. Where
    12  an industrial development agency maintains  a  website,  the  notice  of
    13  agenda  shall  also  be  posted  on such industrial development agency's
    14  website.
    15    § 5. The general municipal law is amended  by  adding  a  new  section
    16  859-d to read as follows:
    17    §  859-d. School board reporting. Every industrial development agency,
    18  continued or created by this chapter or any other law of the state shall
    19  submit to the local school board or boards overlapping  with  an  indus-
    20  trial development agency, within ninety days after the end of its fiscal
    21  year,  a copy of the report required by subdivision two of section twen-
    22  ty-eight hundred of the public authorities law and the  audits  required
    23  by  subdivision  two  of  section twenty-eight hundred two of the public
    24  authorities law.
    25    § 6. This act shall take effect immediately.
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