Bill Text: NY A08444 | 2019-2020 | General Assembly | Introduced
Bill Title: Enacts the unified economic development budget act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to economic development [A08444 Detail]
Download: New_York-2019-A08444-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8444 2019-2020 Regular Sessions IN ASSEMBLY July 8, 2019 ___________ Introduced by M. of A. BUCHWALD -- read once and referred to the Commit- tee on Economic Development AN ACT to amend the business corporation law, in relation to enacting the unified economic development budget 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 "unified economic development budget act". 3 § 2. The business corporation law is amended by adding a new article 4 14 to read as follows: 5 ARTICLE 14 6 UNIFIED ECONOMIC DEVELOPMENT BUDGET 7 Section 1401. Definitions. 8 1402. Unified economic development budget. 9 1403. Standardized applications for state development assist- 10 ance. 11 1404. State development assistance disclosure. 12 § 1401. Definitions. 13 As used in this article: 14 (a) "Annual tax expenditure report" is as defined by section one 15 hundred eighty-one of the executive law. 16 (b) "Base years" means the first two complete calendar years following 17 the effective date of a recipient receiving development assistance. 18 (c) "Date of assistance" means the commencement date of the assistance 19 agreement, which date triggers the period during which the recipient is 20 obligated to create or retain jobs and continue operations at the 21 specific project site. 22 (d) "Development assistance" means: (1) tax expenditures given as an 23 incentive to recipient businesses, not-for-profit organizations and 24 government entities for economic development purposes; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06536-01-9A. 8444 2 1 (2) grants or loans awarded by all state granting bodies and indus- 2 trial development agencies to businesses, not-for-profit organizations 3 and government entities for economic development purposes; and 4 (3) all successor and subsequent development assistance programs and 5 tax expenditures designed to promote large business relocations and 6 expansions. 7 (e) "Development assistance agreement" means any agreement executed by 8 the state granting body or industrial development agency and the recipi- 9 ent setting forth the terms and conditions of development assistance to 10 be provided to the recipient consistent with the final application for 11 development assistance, including but not limited to the date of assist- 12 ance, submitted to and approved by the state granting body or industrial 13 development agency. 14 (f) "Division" means, unless otherwise noted, the New York state divi- 15 sion of the budget or any successor agency. 16 (g) "Economic development" means any economic activity to increase tax 17 revenue, tax base, or employment or improve general economic health, 18 when the activity involves: 19 (1) the planning, design, development, construction, rehabilitation, 20 business relocation, or any combination of these, within a community; 21 and 22 (2) the provision of office, industrial, manufacturing, warehousing, 23 distribution, parking, public, or other facilities, or other improve- 24 ments that benefit the state or a community; 25 but does not result in the transfer of land to public ownership or the 26 transfer of property to a private entity that is a public utility, the 27 lease of property to private entities that occupy an incidental area 28 within a public project or the remedy of blight. 29 (h) "Full-time, permanent job" means a job in which the new employee 30 works for the recipient at a rate of at least thirty-five hours per 31 week. 32 (i) "Industrial development agency" means an agency as defined by 33 section eight hundred fifty-four of the general municipal law. 34 (j) "New employee" means a full-time, permanent employee who repres- 35 ents a net increase in the number of the recipient's employees state- 36 wide. "New employee" includes an employee who previously filled a new 37 employee position with the recipient who was rehired or called back from 38 a layoff that occurs during or following the base years. The term "new 39 employee" does not include any of the following: 40 (1) an employee of the recipient who performs a job that was previous- 41 ly performed by another employee in this state, if that job existed in 42 this state for at least six months before hiring the employee; or 43 (2) a child, grandchild, parent, or spouse, other than a spouse who is 44 legally separated from the individual, of any individual who has a 45 direct or indirect ownership interest of at least five percent in the 46 profits, capital, or value of any member of the recipient. 47 (k) "Part-time job" means a job in which the new employee works for 48 the recipient at a rate of less than thirty-five hours per week. 49 (l) "Recipient" means any business that receives economic development 50 assistance. A business is any corporation, limited liability company, 51 partnership, joint venture, association, sole proprietorship, or other 52 legally recognized entity. 53 (m) "Retained employee" means any employee defined as having a full- 54 time or full-time equivalent job preserved at a specific facility or 55 site, the continuance of which is threatened by a specific and demon-A. 8444 3 1 strable threat, which shall be specified in the application for develop- 2 ment assistance. 3 (n) "Specific project site" means that distinct operational unit to 4 which any development assistance is applied. 5 (o) "State granting body" means the division and/or any other state 6 department, agency, bureau, office, commission, public authority, public 7 corporation and any other state entity that provides and/or administers 8 development assistance that has reporting requirements under this arti- 9 cle, and any successor agencies to any of the preceding entities. 10 (p) "Tax expenditure" is as defined by section one hundred eighty-one 11 of the executive law. 12 (q) "Temporary job" means a job in which the new employee is hired for 13 a specific duration of time or season. 14 (r) "Value of assistance" means the face value of any form of develop- 15 ment assistance. 16 § 1402. Unified economic development budget. 17 (a) For each state fiscal year ending on or after June thirtieth, two 18 thousand twenty-two, the division, in collaboration with the department 19 of taxation and finance, shall submit an annual unified economic devel- 20 opment budget to the governor, senate and assembly. The unified economic 21 development budget shall be due within three months after the end of the 22 fiscal year, and shall present all types of development assistance 23 granted during the prior fiscal year, including: 24 (1) the aggregate amount, prepared by the department of taxation and 25 finance and presented as state totals, of actual uncollected or diverted 26 state tax revenues resulting from each type of development assistance 27 provided pursuant to law, as reported in the annual tax expenditure 28 report; 29 (2) the aggregate amount, prepared by the division and presented as 30 state totals, of development assistance grants and loans awarded by all 31 state and industrial development agencies to businesses, not-for-profit 32 organizations and government entities; and a list of the top five recip- 33 ients by dollar value of each type of development assistance grant or 34 loan; 35 (3) the aggregate amounts required by subparagraphs one and two of 36 this paragraph shall correspond to the most recent fiscal year for which 37 reliable data are available, and the preceding five fiscal years; 38 (4) a list of all state development assistance with a description and 39 aggregate amount of uncollected or diverted state tax revenues resulting 40 from or awarded for each type of development assistance for the most 41 recent fiscal year and its preceding fiscal year; and 42 (5) the aggregate amount, prepared by the division and presented as 43 state totals, of jobs created and/or retained with the support of devel- 44 opment assistance. 45 (b) All data contained in the unified economic development budget 46 presented to the governor, senate and assembly shall be fully subject to 47 the Freedom of Information Act, notwithstanding instances when the 48 disclosure of information violates confidentiality agreements between 49 the department of taxation and finance and recipients of state develop- 50 ment assistance. 51 (c) The department of taxation and finance shall submit a report of 52 the amounts in subparagraph one of paragraph (a) of this section to the 53 division, which shall append such report to the unified economic devel- 54 opment budget rather than separately reporting such amounts. 55 § 1403. Standardized applications for state development assistance.A. 8444 4 1 (a) All final applications submitted to the division, industrial 2 development agencies or any other state granting body requesting devel- 3 opment assistance shall contain, at a minimum: 4 (1) an application tracking number that is specific to both the state 5 granting agency or industrial development agency and to each applica- 6 tion; 7 (2) the office mailing address, office telephone number, and chief 8 officer of the granting body or industrial development agency; 9 (3) the office mailing address, telephone number, and the name of the 10 chief officer of the applicant or authorized designee for the specific 11 project site for which development assistance is requested; 12 (4) the applicant's total number of employees at the specific project 13 site on the date that the application is submitted to the state granting 14 body or industrial development agency, including the number of full- 15 time, permanent jobs, the number of part-time jobs, and the number of 16 temporary jobs; 17 (5) the type of development assistance and value of assistance being 18 requested; 19 (6) the number of jobs to be created and retained or both created and 20 retained by the applicant as a result of the development assistance, 21 including the number of full-time, permanent jobs, the number of part- 22 time jobs, and the number of temporary jobs; 23 (7) a detailed list of the occupation or job classifications and 24 number of new employees or retained employees to be hired in full-time, 25 permanent jobs, a schedule of anticipated starting dates of the new 26 hires and the anticipated average wage by occupation or job classifica- 27 tion and total payroll to be created as a result of the development 28 assistance; 29 (8) a list of all other forms of development assistance that the 30 applicant is requesting for the specific project site and the name of 31 each state granting body or industrial development agency from which 32 that development assistance is being requested; 33 (9) a narrative, if necessary, describing why the development assist- 34 ance is needed and how the applicant's use of the development assistance 35 may reduce employment at any site in New York; 36 (10) a certification by the chief officer of the applicant or his or 37 her authorized designee that the information contained in the applica- 38 tion submitted to the granting body or industrial development agency 39 contains no knowing misrepresentation of material facts upon which 40 eligibility for development assistance is based. 41 (b) Every state granting body or industrial development agency either 42 shall complete, or shall require the applicant to complete, an applica- 43 tion form that meets the minimum requirements as prescribed in this 44 section each time an applicant applies for development assistance 45 covered by this article. 46 (c) The division shall have the discretion to modify any standardized 47 application for state development assistance required under paragraph 48 (a) of this section for any grants that are not given as an incentive to 49 a recipient business organization. 50 § 1404. State development assistance disclosure. 51 (a) Beginning February first, two thousand twenty-one and each year 52 thereafter, every state granting body and industrial development agency 53 shall submit to the division copies of all development assistance agree- 54 ments that it approved in the prior calendar year. 55 (b) For each development assistance agreement for which the date of 56 assistance has occurred in the prior calendar year, each recipient shallA. 8444 5 1 submit to the division a progress report that shall include, but not be 2 limited to, the following: 3 (1) the application tracking number; 4 (2) the office mailing address, telephone number, and the name of the 5 chief officer of the granting body or industrial development agency; 6 (3) the office mailing address, telephone number, and the name of the 7 chief officer of the applicant or authorized designee for the specific 8 project site for which the development assistance was approved by the 9 state granting body or industrial development agency; 10 (4) the type of development assistance program and value of assistance 11 that was approved by the state granting body or industrial development 12 agency; 13 (5) the applicant's total number of employees at the specific project 14 site on the date that the application was submitted to the state grant- 15 ing body or industrial development agency and the applicant's total 16 number of employees at the specific project site on the date of the 17 report, including the number of full-time, permanent jobs, the number of 18 part-time jobs, and the number of temporary jobs, and a computation of 19 the gain or loss of jobs in each category; 20 (6) the number of new employees and retained employees that the appli- 21 cant stated in its development assistance agreement, if any, and if not, 22 then in its application, would be created by the development assistance, 23 broken down by full-time, permanent, part-time, and temporary; 24 (7) a sworn declaration of whether the recipient is in compliance with 25 the development assistance agreement; 26 (8) a detailed list of the occupation or job classifications and 27 number of new employees or retained employees to be hired in full-time, 28 permanent jobs, a schedule of anticipated starting dates of the new 29 hires and the actual average wage by occupation or job classification 30 and total payroll to be created as a result of the development assist- 31 ance; 32 (9) a narrative, if necessary, describing how the recipient's use of 33 the development assistance during the reporting year has reduced employ- 34 ment at any site in New York; and 35 (10) a certification by the chief officer of the applicant or his or 36 her authorized designee that the information in the progress report 37 contains no knowing misrepresentation of material facts upon which 38 eligibility for development assistance is based. 39 (c) The state granting body, industrial development agency or a 40 successor agency, shall have full authority to verify information 41 contained in the recipient's progress report, including the authority to 42 inspect the specific project site and inspect the records of the recipi- 43 ent that are subject to the development assistance agreement. 44 (d) By June first, two thousand twenty-three and by June first of each 45 year thereafter, the division shall compile and publish all data in all 46 of the progress reports in both written and electronic form. 47 § 3. This act shall take effect on the ninetieth day after it shall 48 have become a law.
