Bill Text: NY A11048 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to the purposes and powers of industrial development agencies and to improving the accountability and transparency of such agencies; makes conforming changes to the general municipal law; extends the bond issuance charge to the debt issued by not-for-profit corporations acting on behalf of the state or its political subdivisions; and relates to the purposes and powers of local development corporations and certain other not-for-profit corporations thereof.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-10-07 - referred to local governments [A11048 Detail]
Download: New_York-2019-A11048-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 11048 IN ASSEMBLY October 7, 2020 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Wallace) -- read once and referred to the Committee on Local Governments AN ACT to amend the general municipal law and the public authorities law, in relation to the purposes and powers of industrial development agencies and to improve the accountability and transparency of such agencies; to amend the public authorities law, in relation to extend- ing the bond issuance charge to the debt issued by not-for-profit corporations acting on behalf of the state or its political subdivi- sions; to amend the not-for-profit corporation law, in relation to the purposes and powers of local development corporations and certain other not-for-profit corporations thereof; and to repeal subdivision 3 of section 859 of the general municipal law relating to an evaluation of the activities of industrial development agencies and authorities in the state prepared by an entity independent of the department The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivisions 4 and 14 of section 854 of the general munici- 2 pal law, subdivision 4 as amended by section 6 of part J of chapter 59 3 of the laws of 2013 and subdivision 14 as added by chapter 356 of the 4 laws of 1993, are amended and a new subdivision 21 is added to read as 5 follows: 6 (4) "Project" - shall mean any land, any building or other improve- 7 ment, and all real and personal properties located within the state of 8 New York and within or outside or partially within and partially outside 9 the municipality for whose benefit the agency was created, including, 10 but not limited to, machinery, equipment and other facilities deemed 11 necessary or desirable in connection therewith, or incidental thereto, 12 whether or not now in existence or under construction, which shall be 13 suitable for manufacturing, warehousing, research, civic, commercial or 14 industrial purposes or other economically sound purposes identified and 15 called for to implement a state designated urban cultural park manage- 16 ment plan as provided in title G of the parks, recreation and historic 17 preservation law and which may include or mean an industrial pollution 18 control facility, a recreation facility, educational or cultural facili- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15432-03-0A. 11048 2 1 ty, a horse racing facility, a railroad facility, a continuing care 2 retirement community, or a civic facility, provided, however, that, of 3 agencies governed by this article, only agencies created for the benefit 4 of a county and the agency created for the benefit for the city of New 5 York shall provide financial assistance in any respect to a continuing 6 care retirement community, or an automobile racing facility, provided, 7 however, no agency shall use its funds or provide financial assistance 8 in respect of any project wholly or partially outside the municipality 9 for whose benefit the agency was created without the prior consent ther- 10 eto by the governing body or bodies of all the other municipalities in 11 which a part or parts of the project is, or is to be, located, and such 12 portion of the project located outside such municipality for whose bene- 13 fit the agency was created shall be contiguous with the portion of the 14 project inside such municipality. Provided further, however, that no 15 agency shall provide financial assistance for any project where the 16 project applicant has any agreement to subsequently contract with a 17 municipality for the lease or purchase of such project or project facil- 18 ity. 19 (14) "Financial assistance" - shall mean the proceeds of bonds issued 20 by an agency, straight-leases, grants, loans, or exemptions from taxa- 21 tion claimed by a project occupant as a result of an agency taking 22 title, possession or control (by lease, license or otherwise) to the 23 property or equipment of such project occupant or of such project occu- 24 pant acting as an agent of an agency. 25 (21) "Civic facility" shall mean a facility to be owned or occupied by 26 a municipal corporation, a district corporation, or a not-for-profit 27 corporation organized and existing under the laws of this state or 28 authorized to conduct activities in this state; provided that such 29 facilities shall be limited to medical facilities including those 30 defined in article twenty-eight of the public health law, educational 31 facilities, recreational facilities for public use, facilities used for 32 municipal government or public safety purposes, or housing facilities 33 primarily designed to be occupied by individuals sixty years of age or 34 older. Nothing in this article shall be deemed to waive any applicable 35 requirement for an operating facility certificate, consent or other 36 approval as provided by law. 37 § 2. Subdivision 2 of section 856 of the general municipal law, as 38 amended by chapter 356 of the laws of 1993, is amended to read as 39 follows: 40 2. An agency shall be a corporate governmental agency, constituting a 41 public benefit corporation. Except as otherwise provided by special act 42 of the legislature, an agency shall consist of not less than [three] 43 five nor more than seven members who shall be appointed by the governing 44 body of each municipality and who shall serve at the pleasure of the 45 appointing authority. Such members may include representatives of local 46 government, school boards, organized labor and business. A member shall 47 continue to hold office until his successor is appointed and has quali- 48 fied. The governing body of each municipality shall designate the first 49 chairman and file with the secretary of state a certificate of appoint- 50 ment or reappointment of any member. Such members shall receive no 51 compensation for their services but shall be entitled to the necessary 52 expenses, including traveling expenses, incurred in the discharge of 53 their duties. 54 § 3. Section 858 of the general municipal law, as added by chapter 55 1030 of the laws of 1969, the opening paragraph as amended by chapter 56 478 of the laws of 2011, subdivision 4 as amended by chapter 747 of theA. 11048 3 1 laws of 2005, subdivision 9 as amended by chapter 444 of the laws of 2 1997, subdivision 8 as amended and subdivision 15 as added by chapter 3 356 of the laws of 1993, and subdivisions 16, 17, and 19 as amended and 4 subdivision 18 as added by chapter 109 of the laws of 2020, is amended 5 to read as follows: 6 § 858. Purposes and powers of the agency. The purposes of the agency 7 shall be to promote, develop, encourage and assist in the acquiring, 8 constructing, reconstructing, improving, maintaining, equipping and 9 furnishing industrial, manufacturing, warehousing, commercial, research 10 and recreation facilities including industrial pollution control facili- 11 ties, educational or cultural facilities, civic facilities, railroad 12 facilities, horse racing facilities, automobile racing facilities and 13 continuing care retirement communities, provided, however, that, of 14 agencies governed by this article, only agencies created for the benefit 15 of a county and the agency created for the benefit of the city of New 16 York shall be authorized to provide financial assistance in any respect 17 to a continuing care retirement community, and thereby advance the job 18 opportunities, health, general prosperity and economic welfare of the 19 people of the state of New York and to improve their recreation opportu- 20 nities, prosperity and standard of living; and to carry out the afore- 21 said purposes, each agency shall have the following powers: 22 (1) To sue and be sued; 23 (2) To have a seal and alter the same at pleasure; 24 (3) To acquire, hold and dispose of personal property for its corpo- 25 rate purposes; 26 (4) To acquire by purchase, grant, lease, gift, pursuant to the 27 provisions of the eminent domain procedure law, or otherwise and to use, 28 real property or rights or easements therein necessary for its corporate 29 purposes in compliance with the local zoning and planning regulations 30 and shall take into consideration regional and local comprehensive land 31 use plans and state designated heritage area management plans, and to 32 sell, convey, mortgage, lease, pledge, exchange or otherwise dispose of 33 any such property in such manner as the agency shall determine. In the 34 case of railroad facilities, however, the phrase to use real property or 35 rights or easements therein shall not be interpreted to include opera- 36 tion by the agency of rail service upon or in conjunction with such 37 facilities[.]; 38 (5) To acquire real property from a municipality as necessary for its 39 corporate purposes pursuant to section eight hundred fifty-eight-c of 40 this title; 41 (6) To make by-laws for the management and regulation of its affairs 42 and, subject to agreements with its bondholders, for the regulation of 43 the use of a project or projects[.]; 44 [(6)] (7) With the consent of the municipality, to use agents, employ- 45 ees and facilities of the municipality, paying the municipality its 46 agreed proportion of the compensation or costs; 47 [(7)] (8) To appoint officers, agents and employees, to prescribe 48 their qualifications and to fix their compensation and to pay the same 49 out of funds of the agency; 50 [(8)] (9) (a) To appoint an attorney, who may be the counsel of the 51 municipality, and to fix the attorney's compensation for services which 52 shall be payable to the attorney, and to retain and employ private 53 consultants for professional and technical assistance and advice; 54 (b) An attorney acting as bond counsel for a project must file with 55 the agency a written statement in which the attorney identifies each 56 party to the transaction which such attorney represents. If bond counselA. 11048 4 1 provides any legal services to parties other than the agency the written 2 statement must describe the nature of legal services provided by such 3 bond counsel to all parties to the transaction, including the nature of 4 the services provided to the agency[.]; 5 [(9)] (10) To make contracts and leases, and to execute all instru- 6 ments necessary or convenient to or with any person, firm, partnership 7 or corporation, either public or private; provided, however, that any 8 extension of an existing contract, lease or other agreement entered into 9 by an agency with respect to a project shall be guided by the provisions 10 of this article; 11 [(10)] (11) To acquire, construct, reconstruct, lease, improve, main- 12 tain, equip or furnish one or more projects; 13 [(11)] (12) To accept gifts, grants, loans, or contributions from, and 14 enter into contracts or other transactions with, the United States and 15 the state or any agency of either of them, any municipality, any public 16 or private corporation or any other legal entity, and to use any such 17 gifts, grants, loans or contributions for any of its corporate purposes; 18 (13) To provide financial assistance in the form of loans to improve, 19 maintain or equip one or more projects consistent with its corporate 20 purposes; 21 (14) To provide financial assistance in the form of grants for one or 22 more projects consistent with its corporate purposes; 23 [(12)] (15) To borrow money and to issue bonds and to provide for the 24 rights of the holders thereof; 25 [(13)] (16) To grant options to renew any lease with respect to any 26 project or projects and to grant options to buy any project at such 27 price as the agency may deem desirable; 28 [(14)] (17) To designate the depositories of its money either within 29 or without the state; 30 [(15)] (18) To enter into agreements requiring payments in lieu of 31 taxes. Such agreements shall be in writing and in addition to other 32 terms shall contain: the amount due annually to each affected tax juris- 33 diction (or a formula by which the amount due can be calculated), the 34 name and address of the person, office or agency to which payment shall 35 be delivered, the date on which payment shall be made, and the date on 36 which payment shall be considered delinquent if not paid. Unless other- 37 wise agreed by the affected tax jurisdictions, any such agreement shall 38 provide that payments in lieu of taxes shall be allocated among affected 39 tax jurisdictions in proportion to the amount of real property tax and 40 other taxes which would have been received by each affected tax juris- 41 diction had the project not been tax exempt due to the status of the 42 agency involved in the project. A copy of any such agreement shall be 43 delivered to each affected tax jurisdiction within fifteen days of sign- 44 ing the agreement[. In the absence of any such written agreement,45payments in lieu of taxes made by an agency shall be allocated in the46same proportions as they had been prior to January first, nineteen47hundred ninety-three for so long as the agency's activities render a48project non-taxable by affected tax jurisdictions] and published by the 49 agency on its website; 50 [(16)] (19) To establish and re-establish its fiscal year; 51 [(17)] (20) To provide loans to small businesses or not-for-profit 52 corporations as authorized in section eight hundred fifty-nine-c of this 53 title; and 54 [(18)] (21) To provide grants to small businesses and not-for-profit 55 corporations, as defined in section eight hundred fifty-nine-c of this 56 title, for the purpose of acquiring personal protective equipment orA. 11048 5 1 installing fixtures necessary to prevent the spread of novel coronavi- 2 rus, COVID-19, during the period in which executive order two hundred 3 two of two thousand twenty, as amended, is in effect. In order to be 4 eligible for a grant pursuant to this subdivision, a small business or 5 not-for-profit corporation must meet the requirements of paragraph a of 6 subdivision three of section eight hundred fifty-nine-c of this title. 7 No industrial development agency may provide a small business or not- 8 for-profit corporation with more than ten thousand dollars pursuant to 9 this subdivision; and 10 [(19)] (22) To [do all things necessary or convenient to] carry out 11 its purposes and exercise [the] those powers expressly given in this 12 title. 13 § 4. The general municipal law is amended by adding a new section 14 858-c to read as follows: 15 § 858-c. Purchase or lease of real property owned by a county, city, 16 town or village. 1. The local legislative body of a county, city, town 17 or village may by resolution determine that specifically described real 18 property owned by the county, city, town or village is not required for 19 use by such county, city, town or village and authorize the county, 20 city, town or village to sell or lease such real property to an agency; 21 provided, however, that title to such land be not declared inalienable 22 as a forest preserve or a parkland. 23 2. Notwithstanding the provisions of any general, special or local 24 law, charter or ordinance to the contrary, such sale or lease may be 25 made without appraisal, public notice (except as provided in subdivision 26 four of this section), or public bidding for such price or rental and 27 upon such terms as may be agreed upon between the county, city, town or 28 village and said agency; provided, however, that in the case of a lease 29 the term may not exceed ninety-nine years and provided, further, that in 30 cities having a population of one million or more, no such sale or lease 31 shall be made without the approval of a majority of the members of the 32 borough board of the borough in which such real property is located. 33 3. Before any sale or lease to an agency shall be authorized, a public 34 hearing shall be held by the local legislative body or borough board to 35 consider the proposed sale or lease. 36 4. Notice of such hearing shall be published at least ten days before 37 the date set for the hearing in such publication and in such manner as 38 may be designated by the local legislative body or borough board. Such 39 notice shall include a description of the real property proposed to be 40 sold or leased; a statement of the estimated fair market value of the 41 real property proposed to be sold or leased; the value of the financial 42 consideration to be received by the county, city, town or village from 43 such sale or lease of the real property; and a statement of the intended 44 use or disposition of such real property by the agency. 45 § 5. Subdivision 3 of section 859 of the general municipal law is 46 REPEALED. 47 § 6. The opening paragraph and subdivisions 1 and 2 of section 859-a 48 of the general municipal law, as added by chapter 356 of the laws of 49 1993, are amended and a new subdivision 3-a is added to read as follows: 50 Prior to providing any financial assistance [of] totaling more than 51 one hundred thousand dollars to any project, the agency must comply with 52 the following prerequisites: 53 1. The agency must adopt a resolution describing the project and the 54 type and amount of financial assistance that the agency is contemplating 55 with respect to such project. Such assistance shall be consistent with 56 the uniform [tax exemption] financial assistance policy adopted by theA. 11048 6 1 agency pursuant to subdivision four of section eight hundred seventy- 2 four of this [chapter] title, unless the agency has followed the proce- 3 dures for deviation from such policy specified in paragraph (b) of such 4 subdivision. 5 2. The agency must hold a public hearing with respect to the project 6 and the proposed financial assistance being contemplated by the agency 7 not less than thirty days prior to executing a written agreement to 8 provide financial assistance. Said public hearing shall be held in [a] 9 each city, town or village where the project to receive financial 10 assistance is located or proposes to locate. At said public hearing, 11 interested parties shall be provided reasonable opportunity, both orally 12 and in writing, to present their views with respect to the project and 13 the type and amount of financial assistance to be provided. The agency 14 shall also accept written comments up to seven days after such hearing 15 is held. 16 3-a. The agency shall maintain a complete record of the hearing, 17 including all documents, oral statements, and written statements 18 presented at or within seven days following the hearing. All members 19 shall be provided with a copy of such record at least seven days before 20 voting whether to approve financial assistance for the project. Such 21 record shall also be posted on the agency website at the time it is 22 provided to members. 23 § 7. The general municipal law is amended by adding four new sections 24 859-d, 859-e, 859-f and 859-g to read as follows: 25 § 859-d. Project application and approval criteria. 1. The project 26 applicant shall submit an application, developed by the agency, for 27 approval of a proposed project and financial assistance. The agency 28 shall adopt project application review and approval criteria that shall 29 be applied to all project applications under consideration for approval 30 and financial assistance. The decision to approve or not approve finan- 31 cial assistance shall be based on, but not limited to, consideration of 32 the following criteria: 33 (a) Strategic objectives. Consideration is to be given to the purpose 34 of the project, such as the nature of the planned business activity, the 35 extent to which the planned business activity is unrepresented or under- 36 represented in the community, and whether the project involves a busi- 37 ness interested in relocating from outside the state of New York. 38 (b) Job creation. A decision to fund a project shall be based on the 39 number of jobs to be created or retained by the proposed project, the 40 range of projected salaries and benefits associated with jobs to be 41 created, and the benchmarks and timeframes to be used by the project to 42 determine whether it is meeting projected job creation and retention 43 goals. 44 (c) The financial viability of the project. Approval for funding must 45 consider the extent to which the viability and success of the project is 46 dependent on financial assistance from the agency. The agency shall also 47 consider the amount and type of financial assistance being requested, 48 the amount and type of private financing required, the amount and type 49 of capital investment to be provided by the project applicant, and any 50 prior financial assistance provided to the project or to the project 51 applicant. 52 (d) Economic benefits. Funding decisions shall consider the potential 53 economic and financial impact of the project on existing businesses in 54 the area, on the affected tax jurisdictions, and on the local labor 55 market.A. 11048 7 1 (e) Legal issues. Consideration shall be given to the project appli- 2 cant's record of compliance with applicable laws and regulations. 3 2. The project application review and approval criteria shall be 4 reviewed and approved annually at a regular meeting of the agency and 5 made available to the public on the agency's website. 6 3. The agency shall provide the director of the authorities budget 7 office with an electronic copy of the application and project review and 8 approval criteria within thirty days of their adoption or revision. 9 4. The agency shall retain a written record of the evaluation of each 10 project application to document its decision to provide or deny finan- 11 cial assistance. 12 § 859-e. Financial assistance agreement. 1. The agency shall enter 13 into a written agreement with the project applicant prior to providing 14 financial assistance. The agreement shall include the following informa- 15 tion: 16 (a) a description of the amount and type of financial assistance to be 17 provided by the agency, including a description and the value of proper- 18 ty conveyed at less than fair market value; 19 (b) a description of the amount of financing to be provided by the 20 project applicant, including the amount and type of capital investment 21 to be provided; 22 (c) the purpose of the project; 23 (d) the amount, types, sources and commitments of any private financ- 24 ing; 25 (e) the projected number of new full-time and part-time positions 26 expected to be created over the period of financial assistance, and an 27 estimated schedule by year of when those positions will be created; 28 (f) the number and types of full-time and part-time jobs to be 29 retained, and the number of filled positions at the project as of the 30 date the agreement is executed; 31 (g) the types and value of other forms of financial assistance 32 provided to the project or requested by the project applicant from other 33 state or local government agencies or authorities; and 34 (h) the penalties to be imposed on the project applicant if the terms 35 of the agreement are not met. 36 2. The length of a financial assistance agreement shall be limited to 37 no more than five years; provided however that the agreement may be 38 renewed for up to five additional years if the agency determines that 39 the project applicant has acted in good faith to meet the terms and 40 conditions of the agreement. In no event may financial assistance in the 41 form of a loan or exemption from taxation be provided to a project for 42 more than ten years. 43 3. The financial assistance agreement shall be made available to the 44 public on the website of the agency. 45 4. The agency shall adopt a methodology to evaluate the conformance of 46 each assisted project to the terms and conditions of the financial 47 assistance agreement. This methodology shall be made available to the 48 public on the agency's website. 49 § 859-f. Recapture of certain financial assistance. 1. The agency, 50 pursuant to the terms and conditions of its financial assistance agree- 51 ment, may recapture financial assistance to a project from real property 52 tax exemptions, mortgage recording tax exemptions, or local sales or 53 compensating use tax exemptions if (a) the project violates state or 54 federal tax law, labor law, environmental protection law, or contract 55 law, or any state or federal rule or regulation implementing such law, 56 as determined by a court of competent jurisdiction or administrativeA. 11048 8 1 tribunal, provided that such court or tribunal concludes that the 2 violation would cause material harm to the economy or quality of life of 3 the community; or (b) all or part of the project's business activity or 4 workforce is moved to a location outside the community served by the 5 agency and by doing so violates the terms and conditions of its finan- 6 cial assistance agreement. 7 2. An agency which elects to initiate the recapture of financial 8 assistance pursuant to subdivision one of this section must notify the 9 recipient of such financial assistance in writing that it is in default 10 of its financial assistance agreement and may direct the recipient of 11 financial assistance to repay up to the full amount of such financial 12 assistance received as of the date of the written notice plus interest 13 at the rate set forth in section five thousand four of the civil prac- 14 tice law and rules. 15 3. Financial assistance recaptured pursuant to this section and any 16 interest paid shall be redistributed to affected tax jurisdictions in 17 proportion to the amount of real property tax and other taxes which 18 would have been received by each affected tax jurisdiction had the 19 project not been tax exempt. Unless otherwise agreed to in writing by an 20 affected tax jurisdiction, the agency shall not retain any portion of 21 such funds as an administrative or project fee. 22 § 859-g. Wages and standards. Whenever a recipient of financial 23 assistance from an agency enters into a contract, subcontract, lease or 24 other agreement for or in connection with the construction, demolition, 25 reconstruction, rehabilitation, repair, or renovation of an assisted 26 project, the recipient of financial assistance shall pay workers engaged 27 in such work no less than the prevailing rate of wage and supplements 28 under article eight of the labor law. 29 § 8. Subdivision 1 of section 862 of the general municipal law, as 30 amended by section 1 of part J of chapter 59 of the laws of 2013, is 31 amended to read as follows: 32 (1) (a) No [funds] financial assistance of the agency shall be used in 33 respect [of] to any project if the [completion thereof would result in] 34 project approval or provision of financial assistance contributes to the 35 removal of [an industrial or manufacturing plant of] all or part of the 36 project occupant from one area of the state to another area of the state 37 or in the abandonment of one or more [plants or] facilities of the 38 project occupant located within the state, or provides the project with 39 a competitive advantage over existing like businesses in the same indus- 40 try located in the same city, town, or village as such project, 41 provided, however, that [neither restriction] such restrictions shall 42 not apply if the agency shall determine on the basis of the application 43 before it that the project is reasonably necessary to discourage the 44 project occupant from removing such other plant or facility to a 45 location outside the state or is reasonably necessary to preserve the 46 competitive position of the project occupant in its respective industry. 47 (b) For the purposes of this subdivision, "competitive advantage" 48 shall include trade secrets that are submitted to an agency by a commer- 49 cial enterprise or derived from information obtained from a commercial 50 enterprise and which if disclosed would cause substantial injury to the 51 competitive position of the subject enterprise. Other factors to be 52 considered in determining whether a trade secret exists include: 53 (i) the extent to which the information is known outside the business; 54 (ii) the extent to which the information is known by a business' 55 employees and others involved in the business;A. 11048 9 1 (iii) the extent of measures taken by a business to guard the secrecy 2 of the information; 3 (iv) the value of the information to a business and to its compet- 4 itors; 5 (v) the amount of effort or money expended by a business in developing 6 the information; and, 7 (vi) the ease or difficulty with which the information could be prop- 8 erly acquired or duplicated by others. If there has been a voluntary 9 disclosure by the plaintiff, or if the facts pertaining to the matter 10 are a subject of general knowledge in the trade, then any property right 11 has evaporated. 12 § 9. Subdivision 4 of section 874 of the general municipal law, as 13 amended by chapter 357 of the laws of 1993 and paragraph (a) as amended 14 by chapter 386 of the laws of 2019, is amended to read as follows: 15 (4) (a) The agency shall [establish] adopt a uniform [tax exemption] 16 financial assistance policy, [with input from] subject to the approval 17 of all affected tax jurisdictions, which shall be applicable to the 18 provision of financial assistance pursuant to section eight hundred 19 fifty-nine-a of this [chapter] title and shall provide guidelines for 20 the claiming of real property, mortgage recording, and sales tax 21 exemptions. Such guidelines shall include, but not be limited to: peri- 22 od of exemption; payments in lieu of taxes, as a percentage of 23 [exemption] taxes that would have been levied by or on behalf of 24 affected tax jurisdictions if the project was not tax exempt by reason 25 of agency involvement; types of projects for which exemptions can be 26 claimed; procedures for payments in lieu of taxes and instances in which 27 real property appraisals are to be performed as a part of an application 28 for tax exemption; in addition, agencies shall in adopting such policy 29 consider such issues as: the extent to which a project will create or 30 retain permanent, private sector jobs; the estimated value of any tax 31 exemptions to be provided; whether affected tax jurisdictions shall be 32 reimbursed by the project occupant if a project does not fulfill the 33 purposes for which an exemption was provided; the impact of a proposed 34 project on existing and proposed businesses and economic development 35 projects in the vicinity; the amount of private sector investment gener- 36 ated or likely to be generated by the proposed project; the demonstrated 37 public support for the proposed project; the likelihood of accomplishing 38 the proposed project in a timely fashion; the effect of the proposed 39 project upon the environment; the extent to which the project will 40 utilize, to the fullest extent practicable and economically feasible, 41 resource conservation, energy efficiency, green technologies, and alter- 42 native and renewable energy measures; the extent to which the proposed 43 project will require the provision of additional services, including, 44 but not limited to additional educational, transportation, police, emer- 45 gency medical or fire services; and the extent to which the proposed 46 project will provide additional sources of revenue for municipalities 47 and school districts. The adopted uniform financial assistance policy 48 shall be provided to the chief executive officer and the members of the 49 governing body of each affected tax jurisdiction and shall be made 50 available for public inspection at the agency's office and on the agen- 51 cy's website upon its adoption. 52 (b) The agency shall [establish a procedure] adopt criteria for devi- 53 ation from the uniform [tax exemption] financial assistance policy 54 required pursuant to this subdivision, which shall be subject to the 55 approval of all affected local tax jurisdictions. The agency shall set 56 forth in writing the reasons for deviation from such policy, and shallA. 11048 10 1 further notify the affected local taxing jurisdictions of the proposed 2 deviation from such policy and the reasons therefor not less than sixty 3 days before such deviation from the uniform tax exemption policy takes 4 effect. 5 § 10. Section 1953 of the public authorities law, as added by chapter 6 759 of the laws of 1967, the opening paragraph and subdivisions 9 and 13 7 as amended by chapter 907 of the laws of 1972 and subdivision 8 as 8 amended, subdivision 14 as added and subdivisions 15 and 16 as renum- 9 bered by chapter 356 of the laws of 1993, is amended to read as follows: 10 § 1953. Purpose and powers of the authority. The purposes of the 11 authority shall be to promote, develop, encourage and assist in the 12 acquiring, constructing, reconstructing, improving, maintaining, equip- 13 ping and furnishing industrial, manufacturing, warehouse, civic facili- 14 ties, and commercial research facilities including industrial pollution 15 control facilities, transportation facilities including but not limited 16 to those relating to water, highway, rail and air, in one or more areas 17 of the city, particularly but not exclusively at the site of what was 18 formerly the Troy airport including an airstrip or airport located in 19 the southern section of the city and thereby advance the job opportu- 20 nities, health, general prosperity and economic welfare of the people of 21 said city and to improve their standard of living; provided, however, 22 that the authority shall not undertake any project if the completion 23 thereof would result in the removal of an industrial or manufacturing 24 plant of the project occupant from one area of the state to another area 25 of the state or in the abandonment of one or more plants or facilities 26 of the project applicant located within the state, provided, however, 27 that neither restriction shall apply if the authority shall determine on 28 the basis of the application before it that the project is reasonably 29 necessary to discourage the project occupant from removing such other 30 plant or facility to a location outside the state or is reasonably 31 necessary to preserve the competitive position of the project occupant 32 in its respective industry. To carry out said purposes, the authority 33 shall have power: 34 1. To sue and be sued; 35 2. To have a seal and alter the same at pleasure; 36 3. To acquire, hold and dispose of personal property for its corporate 37 purpose; 38 4. To acquire by purchase, grant, lease, gift, condemnation, or other- 39 wise and to use, real property or rights or easements therein necessary 40 for its corporate purposes, and to sell, convey, mortgage, lease, 41 pledge, exchange or otherwise dispose of any such property in such 42 manner as the authority shall determine. With respect to real property 43 conveyed to it by the city, however, such power of disposition shall be 44 limited as hereinafter provided in section nineteen hundred [five] 45 fifty-five of this title; 46 5. To acquire real property within the city of Troy as necessary for 47 its corporate purposes pursuant to section eight hundred fifty-eight-c 48 of the general municipal law; 49 6. To make by-laws for the management and regulation of its affairs 50 and, subject to agreements with its bondholders, for the regulation of 51 the use of the project; 52 [6.] 7. With the consent of the city, to use agents, employees and 53 facilities of the city, paying the city its agreed proportion of the 54 compensation or costs; 55 [7.] 8. To appoint officers, agents and employees, to prescribe their 56 qualifications and to fix their compensation and to pay the same out ofA. 11048 11 1 funds of the authority, subject, however, to the provisions of the civil 2 service law as hereinafter provided in section nineteen hundred [and3four] fifty-four of this title; 4 [8.] 9. To appoint an attorney, who may be the corporation counsel of 5 the city, and to fix the attorney's compensation for services which 6 shall be payable to the attorney, and to retain and employ private 7 consultants for professional and technical assistance and advice; 8 provided that an attorney acting as bond counsel for a project must file 9 with the authority a written statement in which the attorney identifies 10 each party to the transaction which such attorney represents. If bond 11 counsel provides any legal services to parties other than the authority, 12 the written statement must describe the nature of legal services 13 provided by such bond counsel to all parties to the transaction, includ- 14 ing the nature of the services provided to the authority; 15 [9.] 10. To make contracts and leases upon such terms as the authority 16 shall deem appropriate, including without limitation leases which grant 17 the tenant of a project an option to renew or an option to purchase the 18 project, or both, at a fixed or otherwise predetermined price and to 19 execute all instruments necessary or convenient; 20 [10.] 11. To acquire, construct, reconstruct, lease, improve, main- 21 tain, equip or furnish one or more projects; 22 [11.] 12. To accept gifts, grants, loans or contributions from, and 23 enter into contracts or other transactions with, the United States and 24 the state or any agency of either of them, any municipality, any public 25 or private corporation or any other legal entity, and to use any such 26 gifts, grants, loans or contributions for any of its corporate purposes; 27 [12.] 13. To provide financial assistance in the form of loans to 28 improve, maintain or equip one or more projects consistent with its 29 corporate purposes; 30 14. To provide financial assistance in the form of grants to one or 31 more projects consistent with its corporate purposes; 32 15. To borrow money and to issue bonds and to provide for the rights 33 of the holders thereof; 34 [13.] 16. To designate the depositories of its money either within or 35 without the state of New York; 36 [14.] 17. To enter into agreements requiring payments in lieu of 37 taxes. Such agreements shall be in writing and in addition to other 38 terms shall contain: the amount due annually to each affected tax juris- 39 diction (or a formula by which the amount due can be calculated), the 40 name and address of the person, office or agency to which payment shall 41 be delivered, the date on which payment shall be made, and the date on 42 which payment shall be considered delinquent if not paid. Unless other- 43 wise agreed by the affected tax jurisdictions, any such agreement shall 44 provide that payments in lieu of taxes shall be allocated among affected 45 tax jurisdictions in proportion to the amount of real property tax and 46 other taxes which would have been received by each affected tax juris- 47 diction had the project not been tax exempt due to the status of the 48 authority involved in the project. A copy of any such agreement shall be 49 delivered to each affected tax jurisdiction within fifteen days of sign- 50 ing the agreement. In the absence of any such written agreement, 51 payments in lieu of taxes made by an agency shall be allocated in the 52 same proportions as they had been prior to January first, nineteen 53 hundred ninety-three for so long as the authority's activities render a 54 project non-taxable by affected tax jurisdictions. 55 [15.] 18. To establish and reestablish its fiscal year; andA. 11048 12 1 [16.] 19. To do all things necessary or convenient to carry out its 2 purposes and exercise the powers expressly given in this title. 3 § 11. Section 1953-a of the public authorities law, as added by chap- 4 ter 356 of the laws of 1993, subdivision 1 as amended by chapter 357 of 5 the laws of 1993, is amended to read as follows: 6 § 1953-a. Additional prerequisites to the provision of financial 7 assistance. Prior to providing any financial assistance [of] totaling 8 more than one hundred thousand dollars to any project, the authority 9 must comply with the following prerequisites: 10 1. The authority must adopt a resolution describing the project and 11 type and amount of the financial assistance that the authority is 12 contemplating with respect to such project. Such assistance shall be 13 consistent with the uniform [tax exemption] financial assistance policy 14 adopted by the agency pursuant to subdivision one of section nineteen 15 hundred sixty-three-a of this [chapter] title, unless the agency has 16 followed procedures for deviation from such policy specified in subdivi- 17 sion two of such section. 18 2. The authority must hold a public hearing with respect to the 19 project and the proposed financial assistance being contemplated by the 20 authority not less than thirty days prior to executing a written agree- 21 ment to provide financial assistance. At said public hearing, inter- 22 ested parties shall be provided reasonable opportunity, both orally and 23 in writing, to present their views with respect to the project and the 24 type and amount of financial assistance to be provided. The authority 25 shall also accept written comments up to seven days after such hearing 26 is held. 27 3. The authority must give at least ten days published notice of said 28 public hearing and shall, at the same time, provide notice of such hear- 29 ing to the chief executive officer of the affected tax jurisdiction 30 within which the project is located. The notice of hearing must state 31 the time and place of the hearing, contain a general, functional 32 description of the project, describe the prospective location of the 33 project, identify the initial owner, operator or manager of the project 34 and generally describe the financial assistance contemplated by the 35 authority with respect to the project. 36 4. The authority shall maintain a complete record of the hearing, 37 including all documents and oral statements, and written statements 38 presented at or within seven days following such hearing. All members 39 shall be provided with a copy of such record at least seven days before 40 voting whether to approve financial assistance for the project. Such 41 record shall also be posted on the authority website at the time it is 42 provided to members. 43 § 12. The public authorities law is amended by adding four new 44 sections 1953-b, 1953-c, 1953-d and 1953-e to read as follows: 45 § 1953-b. Project application and approval criteria. 1. The project 46 applicant shall submit an application, developed by the authority, for 47 approval of a proposed project and financial assistance. The authority 48 shall adopt project application review and approval criteria that shall 49 be applied to all project applications under consideration for approval 50 and financial assistance. The decision to approve or not approve finan- 51 cial assistance shall be based on, but not limited to, consideration of 52 the following criteria: 53 (a) Strategic objectives. Consideration is to be given to the purpose 54 of the project, such as the nature of the planned business activity, the 55 extent to which the planned business activity is unrepresented or under-A. 11048 13 1 represented in the community, and whether the project involves a busi- 2 ness interested in relocating from outside the state of New York. 3 (b) Job creation. A decision to fund a project shall be based on the 4 number of jobs to be created or retained by the proposed project, the 5 range of projected salaries and benefits associated with jobs to be 6 created, and the benchmarks and timeframes to be used by the project to 7 determine whether it is meeting projected job creation and retention 8 goals. 9 (c) The financial viability of the project. Approval for funding shall 10 consider the extent to which the viability and success of the project is 11 dependent on financial assistance from the authority. The authority 12 shall also consider the amount and type of financial assistance being 13 requested, the amount and type of private financing required, the amount 14 and type of capital investment to be provided by the project applicant, 15 and any prior financial assistance provided to the project or to the 16 project applicant. 17 (d) Economic benefits. Funding decisions shall consider the potential 18 economic and financial impact of the project on existing businesses in 19 the area, on the affected tax jurisdictions, and on the local labor 20 market. 21 (e) Legal issues. Consideration shall be given to the project appli- 22 cant's record of compliance with applicable laws and regulations. 23 2. The project application review and approval criteria shall be 24 reviewed and approved annually at a regular meeting of the authority and 25 made available to the public on the authority's website. 26 3. The authority shall provide the director of the authorities budget 27 office with an electronic copy of the application and project review and 28 approval criteria within thirty days of their adoption or revision. 29 4. The authority shall retain a written record of the evaluation of 30 each project application to document its decision to provide or deny 31 financial assistance. 32 § 1953-c. Financial assistance agreement. 1. The authority shall enter 33 into a written agreement with the project applicant prior to providing 34 financial assistance. The agreement shall include the following informa- 35 tion: 36 (a) a description of the amount and type of financial assistance to be 37 provided by the authority, including a description and the value of 38 property conveyed at less than fair market value; 39 (b) a description of the amount of financing to be provided by the 40 project applicant, including the amount and type of capital investment 41 to be provided; 42 (c) the purpose of the project; 43 (d) the amount, types, sources and commitments of any private financ- 44 ing; 45 (e) the projected number of new full-time and part-time positions 46 expected to be created over the period of financial assistance, and an 47 estimated schedule by year of when those positions will be created; 48 (f) the number and types of full-time and part-time jobs to be 49 retained, and the number of filled positions at the project as of the 50 date the agreement is executed; 51 (g) the types and value of other forms of financial assistance 52 provided to the project or requested by the project applicant from other 53 state or local government agencies or authorities; and 54 (h) the penalties to be imposed on the project applicant if the terms 55 of the agreement are not met.A. 11048 14 1 2. The length of a financial assistance agreement shall be limited to 2 no more than five years; provided however that the agreement may be 3 renewed for up to five additional years if the authority determines that 4 the project applicant has acted in good faith to meet the terms and 5 conditions of the agreement. In no event may financial assistance in the 6 form of a loan or exemption from taxation be provided to a project for 7 more than ten years. 8 3. The financial assistance agreement shall be made available to the 9 public on the website of the authority. 10 4. The authority shall adopt a methodology to evaluate the conformance 11 of each assisted project to the terms and conditions of the financial 12 assistance agreement. This methodology shall be made available to the 13 public on the authority's website. 14 § 1953-d. Recapture of certain financial assistance. 1. The authority, 15 pursuant to the terms and conditions of its financial assistance agree- 16 ment, may recapture financial assistance to a project from the proceeds 17 of bonds issued by the authority, mortgage recording tax exemptions, or 18 local sales or compensating use tax exemptions if (a) the project 19 violates state or federal tax law, labor law, environmental protection 20 law, or contract law, or any state or federal rule or regulation imple- 21 menting such law, as determined by a court of competent jurisdiction or 22 administrative tribunal, provided that such court or tribunal concludes 23 that the violation would cause material harm to the economy or quality 24 of life of the community; or (b) all or part of the project's business 25 activity or workforce is moved to a location outside the community 26 served by the authority and by doing so violates the terms and condi- 27 tions of its financial assistance agreement. 28 2. An authority which elects to initiate the recapture of financial 29 assistance pursuant to subdivision one of section eight hundred fifty- 30 nine-f of the general municipal law must notify the recipient of such 31 financial assistance in writing that it is in default of its financial 32 assistance agreement and may direct the recipient of financial assist- 33 ance to repay up to the full amount of such financial assistance 34 received as of the date of the written notice plus interest at the rate 35 set forth in section five thousand four of the civil practice law and 36 rules. 37 3. Financial assistance recaptured pursuant to this section and any 38 interest paid shall be redistributed to affected tax jurisdictions in 39 proportion to the amount of real property tax and other taxes which 40 would have been received by each affected tax jurisdiction had the 41 project not been tax exempt. Unless otherwise agreed to in writing by an 42 affected tax jurisdiction, the authority shall not retain any portion of 43 such funds as an administrative or project fee. 44 § 1953-e. Wages and standards. Whenever a recipient of financial 45 assistance from the authority enters into a contract, subcontract, lease 46 or other agreement for or in connection with the construction, demoli- 47 tion, reconstruction, rehabilitation, repair, or renovation of an 48 assisted project, the recipient of financial assistance shall pay work- 49 ers engaged in such work no less than the prevailing rate of wage and 50 supplements under article eight of the labor law. 51 § 13. Section 1963-a of the public authorities law, as amended by 52 chapter 357 of the laws of 1993 and subdivision 1 as amended by chapter 53 386 of the laws of 2019, is amended to read as follows: 54 § 1963-a. Uniform [tax exemption] financial assistance policy. 1. The 55 authority shall [establish] adopt a uniform [tax exemption] financial 56 assistance policy, [with input from] subject to the approval of affectedA. 11048 15 1 local taxing jurisdictions, which shall be applicable to provisions of 2 financial assistance pursuant to section nineteen hundred fifty-three-a 3 of this title and shall provide guidelines for the claiming of real 4 property, mortgage recording, and sales tax exemptions. Such guidelines 5 shall include, but not be limited to: period of exemption; payments in 6 lieu of taxes as a percentage of [exemption] taxes that would have been 7 levied by or on behalf of affected tax jurisdictions if the project was 8 not exempt by reason of authority involvement; types of projects for 9 which exemptions can be claimed; procedures for payments in lieu of 10 taxes and instances in which real property appraisals are to be 11 performed as a part of an application for tax exemption; in addition, 12 the authority in adopting such policy shall consider such issues as: the 13 extent to which a project will create or retain permanent, private 14 sector jobs; the estimated value of any tax exemption to be provided; 15 whether affected tax jurisdictions should be reimbursed by the project 16 occupant if a project does not fulfill the purposes for which an 17 exemption was provided; the impact of a proposed project on existing and 18 proposed businesses and economic development projects in the vicinity; 19 the amount of private sector investment generated or likely to be gener- 20 ated by the proposed project; the demonstrated public support for the 21 proposed project; the likelihood of accomplishing the proposed project 22 in a timely fashion; the effect of the proposed project upon the envi- 23 ronment; the extent to which the project will utilize, to the fullest 24 extent practicable and economically feasible, resource conservation, 25 energy efficiency, green technologies, and alternative and renewable 26 energy measures; the extent to which the proposed project will require 27 the provision of additional services, including, but not limited to 28 additional educational, transportation, police, emergency medical or 29 fire services; and the extent to which the proposed project will provide 30 additional sources [or] of revenue for municipalities and school 31 districts. The adopted uniform financial assistance policy shall be 32 provided to the chief executive officer and members of the governing 33 body of each affected tax jurisdiction and shall be made available for 34 public inspection at the authority's office and on the authority's 35 website upon its adoption. 36 2. The authority shall [establish a procedure] adopt criteria for 37 deviation from the uniform [tax exemption] financial assistance policy 38 required pursuant to this section which shall be subject to the approval 39 of affected local tax jurisdictions. The authority shall set forth in 40 writing the reasons for deviation from such policy, and shall further 41 notify the affected tax jurisdictions of the proposed deviation from 42 such policy and the reasons therefor not less than sixty days before 43 such deviation from the uniform tax exemption policy takes effect. 44 § 14. Section 2306 of the public authorities law, as added by chapter 45 915 of the laws of 1969, the opening paragraph and an undesignated para- 46 graph as amended by chapter 304 of the laws of 2013, subdivision 9 as 47 amended by chapter 556 of the laws of 1973 and subdivision 8 as amended, 48 subdivision 14 as added and subdivisions 15 and 16 as renumbered by 49 chapter 356 of the laws of 1993, is amended to read as follows: 50 § 2306. Purpose and powers of the authority. The purposes of the 51 authority shall be to promote, develop, encourage and assist in the 52 acquiring, constructing, reconstructing, improving, maintaining, equip- 53 ping and furnishing industrial, manufacturing, warehouse, civic facili- 54 ties, commercial and research facilities and facilities for use by a 55 federal agency or a medical facility including industrial pollution 56 control facilities, which may include transportation facilities includ-A. 11048 16 1 ing but not limited to those relating to water, highway, rail and air, 2 in one or more areas of the city, and thereby advance the job opportu- 3 nities, health, general prosperity and economic welfare of the people of 4 said city and to improve their medical care and standard of living; 5 provided, however, that the authority shall not undertake any project if 6 the completion thereof would result in the removal of an industrial or 7 manufacturing plant of the project occupant from one area of the state 8 to another area of the state or in abandonment of one or more plants or 9 facilities of the project applicant located within the state, provided, 10 however, that neither restriction shall apply if the authority shall 11 determine on the basis of the application before it that the project is 12 reasonably necessary to discourage the project occupant from removing 13 such other plant or facility to a location outside the state or is 14 reasonably necessary to preserve the competitive position of the project 15 occupant in its respective industry. Except as otherwise provided for in 16 this section, no financial assistance of the authority shall be provided 17 in respect of any project where facilities or property that are primari- 18 ly used in making retail sales to customers who personally visit such 19 facilities constitute more than one-third of the total project cost. For 20 the purposes of this article, "retail sales" shall mean: (i) sales by a 21 registered vendor under article twenty-eight of the tax law primarily 22 engaged in the retail sale of tangible personal property, as defined in 23 subparagraph (i) of paragraph four of subdivision (b) of section eleven 24 hundred one of the tax law; or (ii) sales of a service to such custom- 25 ers. Except, however, that tourism destination projects shall not be 26 prohibited by this paragraph. For the purpose of this paragraph, "tour- 27 ism destination" shall mean a location or facility which is likely to 28 attract a significant number of visitors from outside the economic 29 development region as established by section two hundred thirty of the 30 economic development law, in which the project is located. 31 Notwithstanding the provisions of this section to the contrary, such 32 financial assistance may, however, be provided to a project where facil- 33 ities or property that are primarily used in making retail sales of 34 goods or services to customers who personally visit such facilities to 35 obtain such goods or services constitute more than one-third of the 36 total project cost, where: (i) the predominant purpose of the project 37 would be to make available goods or services which would not, but for 38 the project, be reasonably accessible to the residents of the city of 39 Auburn because of a lack of reasonably accessible retail trade facili- 40 ties offering such goods or services; or (ii) the project is located in 41 a highly distressed area. With respect to projects authorized pursuant 42 to this paragraph no project shall be approved unless the authority 43 shall find after the public hearing required by section twenty-three 44 hundred seven of this title that undertaking the project will serve the 45 public purposes of this article by preserving permanent, private sector 46 jobs or increasing the overall number of permanent, private sector jobs 47 in the state. Where the authority makes such a finding, prior to provid- 48 ing financial assistance to the project by the authority, the chief 49 executive officer of the city of Auburn shall confirm the proposed 50 action of the authority. To carry out said purpose, the authority shall 51 have power: 52 1. To sue and be sued; 53 2. To have a seal and alter the same at pleasure; 54 3. To acquire, hold and dispose of personal property for its corporate 55 purpose;A. 11048 17 1 4. To acquire by purchase, grant, lease, gift, condemnation, or other- 2 wise and to use, real property or rights or easements therein necessary 3 for its corporate purposes, and to sell, convey, mortgage, lease, 4 pledge, exchange or otherwise dispose of any such property in such 5 manner as the authority shall determine. With respect to real property 6 conveyed to it by the city, however, such power of disposition shall be 7 limited as hereinafter provided in section twenty-three hundred ten of 8 this title; 9 5. To acquire real property within the city of Auburn as necessary for 10 its corporate purposes pursuant to section eight hundred fifty-eight-c 11 of the general municipal law; 12 6. To make by-laws for the management and regulation of its affairs 13 and, subject to agreements with its bondholders, for the regulation of 14 the use of the project[.]; 15 [6.] 7. With the consent of the city, to use agents, employees and 16 facilities of the city, paying the city its agreed proportion of the 17 compensation or costs[.]; 18 [7.] 8. To appoint officers, agents and employees, to prescribe their 19 qualifications and to fix their compensation and to pay the same out of 20 funds of the authority, subject, however, to the provisions of the civil 21 service law hereinafter provided in section twenty-three hundred eight 22 of this title; 23 [8.] 9. To retain and employ financial advisors, engineers, archi- 24 tects, attorneys and other consultants for professional and technical 25 assistance and advice; that an attorney acting as bond counsel for a 26 project must file with the authority a written statement in which the 27 attorney identifies each party to the transaction which such attorney 28 represents. If bond counsel provides any legal services to the parties 29 other than the authority, the written statement must describe the nature 30 of legal services provided by such bond counsel to all parties to the 31 transaction, including the nature of the services provided to the 32 authority; 33 [9.] 10. To make contracts and leases upon such terms as the authority 34 shall deem appropriate, including without limitation leases which grant 35 the tenant of a project an option to renew or an option to purchase the 36 project, or both, at a fixed or otherwise predetermined price, and to 37 execute all instruments necessary or convenient; 38 [10.] 11. To acquire, construct, reconstruct, lease, improve, main- 39 tain, equip or furnish one or more projects; 40 [11.] 12. To accept gifts, grants, loans or contributions from, and 41 enter into contracts or other transactions with, the United States and 42 the state or any agency of either of them, any municipality, any public 43 or private corporation or any other legal entity, and to use any such 44 gifts, grants, loans or contributions for any of its corporate purposes; 45 [12.] 13. To provide financial assistance in the form of loans to 46 improve, maintain or equip one or more projects consistent with its 47 corporate purposes; 48 14. To provide financial assistance in the form of grants for one or 49 more projects consistent with its corporate purposes; 50 15. To borrow money and to issue bonds and to provide for the rights 51 of the holders thereof; 52 [13.] 16. To designate the depositories of its money in the city of 53 Auburn[.]; 54 [14.] 17. To enter into agreements requiring payments in lieu of 55 taxes. Such agreements shall be in writing and in addition to other 56 terms shall contain: the amount due annually to each affected tax juris-A. 11048 18 1 diction (or a formula by which the amount due can be calculated), the 2 name and address of the person, office or agency to which payment shall 3 be delivered, the date on which the payment shall be made, and the date 4 on which payment shall be considered delinquent if not paid. Unless 5 otherwise agreed by the affected tax jurisdictions, any such agreement 6 shall provide that payments in lieu of taxes shall be allocated among 7 affected tax jurisdictions in proportion to the amount of real property 8 tax and other taxes which would have been received by each affected tax 9 jurisdiction had the project not been tax exempt due to the status of 10 the agency involved in the project. A copy of any such agreement shall 11 be delivered to each tax affected jurisdiction within fifteen days of 12 signing the agreement. In the absence of any such written agreement, 13 payments in lieu of taxes shall be allocated in the same proportions as 14 they had been prior to January first, nineteen hundred ninety-three for 15 so long as the authority's activities render a project non-taxable by 16 affected tax jurisdictions[.]; 17 [15.] 18. To establish and reestablish its fiscal year; and 18 [16.] 19. To do all things necessary or convenient to carry out its 19 purposes and exercise the powers expressly given in this title. 20 § 15. Section 2307 of the public authorities law, as added by chapter 21 356 of the laws of 1993, and subdivision 1 as amended by chapter 357 of 22 the laws of 1993, is amended to read as follows: 23 § 2307. Additional prerequisites to the provision of financial assist- 24 ance. Prior to providing any financial assistance [of] totaling more 25 than one hundred thousand dollars to any project, the authority must 26 comply with the following prerequisites: 27 1. The authority must adopt a resolution describing the project and 28 type and amount of the financial assistance that the authority is 29 contemplating with respect to such project. Such assistance shall be 30 consistent with the uniform [tax exemption] financial assistance policy 31 adopted by the agency pursuant to subdivision one of section twenty- 32 three hundred fifteen of this chapter, unless the agency has followed 33 procedures for deviation from such policy specified in subdivision two 34 of such section. 35 2. The authority must hold a public hearing with respect to the 36 project and the proposed financial assistance being contemplated by the 37 authority not less than thirty days prior to executing a written agree- 38 ment to provide financial assistance. At said public hearing, inter- 39 ested parties shall be provided reasonable opportunity, both orally and 40 in writing, to present their views with respect to the project and the 41 type and amount of financial assistance to be provided. The authority 42 shall also accept written comments up to seven days after such hearing 43 is held. 44 3. The authority must give at least ten days published notice of said 45 public hearing and shall, at the same time, provide notice of such hear- 46 ing to the chief executive officer of each affected tax [jurisidiction] 47 jurisdiction within which the project is located. The notice of hearing 48 must state the time and place of the hearing, contain a general, func- 49 tional description of the project, describe the prospective location of 50 the project, identify the initial owner, operator or manager of the 51 project and generally describe the financial assistance contemplated by 52 the authority with respect to the project. 53 4. The authority shall maintain a complete record of the hearing, 54 including all documents and oral statements, and written statements 55 presented at or within seven days following such hearing. All members 56 shall be provided with a copy of such record at least seven days beforeA. 11048 19 1 deciding whether to approve financial assistance for the project. Such 2 record shall also be posted on the authority's website at the time it is 3 provided to members. 4 § 16. The public authorities law is amended by adding four new 5 sections 2307-a, 2307-b, 2307-c and 2307-d to read as follows: 6 § 2307-a. Project application and approval criteria. 1. The project 7 applicant shall submit an application, developed by the authority, for 8 approval of a proposed project and financial assistance. The authority 9 shall adopt project application review and approval criteria that shall 10 be applied to all project applications under consideration for approval 11 and financial assistance. The decision to approve or not approve finan- 12 cial assistance shall be based on, but not limited to, consideration of 13 the following criteria: 14 (a) Strategic objectives. Consideration is to be given to the purpose 15 of the project, such as the nature of the planned business activity, the 16 extent to which the planned business activity is unrepresented or under- 17 represented in the community, and whether the project involves a busi- 18 ness interested in relocating from outside the state of New York. 19 (b) Job creation. A decision to fund a project shall be based on the 20 number of jobs to be created or retained by the proposed project, the 21 range of projected salaries and benefits associated with jobs to be 22 created, and the benchmarks and timeframes to be used by the project to 23 determine whether it is meeting projected job creation and retention 24 goals. 25 (c) The financial viability of the project. Approval for funding shall 26 consider the extent to which the viability and success of the project is 27 dependent on financial assistance from the authority. The authority 28 shall also consider the amount and type of financial assistance being 29 requested, the amount and type of private financing required, the amount 30 and type of capital investment to be provided by the project applicant, 31 and any prior financial assistance provided to the project or to the 32 project applicant. 33 (d) Economic benefits. Funding decisions shall consider the potential 34 economic and financial impact of the project on existing businesses in 35 the area, on the affected tax jurisdictions, and on the local labor 36 market. 37 (e) Legal issues. Consideration shall be given to the project appli- 38 cant's record of compliance with applicable laws and regulations. 39 2. The project application review and approval criteria shall be 40 reviewed and approved annually at a regular meeting of the authority and 41 made available to the public on the authority's website. 42 3. The authority shall provide the director of the authorities budget 43 office with an electronic copy of the application and project review and 44 approval criteria within thirty days of their adoption or revision. 45 4. The authority shall retain a written record of the evaluation of 46 each project application to document its decision to provide or deny 47 financial assistance. 48 § 2307-b. Financial assistance agreement. 1. The authority shall enter 49 into a written agreement with the project applicant prior to providing 50 financial assistance. The agreement shall include the following informa- 51 tion: 52 (a) a description of the amount and type of financial assistance to be 53 provided by the authority, including a description and the value of 54 property conveyed at less than fair market value;A. 11048 20 1 (b) a description of the amount of financing to be provided by the 2 project applicant, including the amount and type of capital investment 3 to be provided; 4 (c) the purpose of the project; 5 (d) the amount, types, sources and commitments of any private financ- 6 ing; 7 (e) the projected number of new full-time and part-time positions 8 expected to be created over the period of financial assistance, and an 9 estimated schedule by year of when those positions will be created; 10 (f) the number and types of full-time and part-time jobs to be 11 retained, and the number of filled positions at the project as of the 12 date the agreement is executed; 13 (g) the types and value of other forms of financial assistance 14 provided to the project or requested by the project applicant from other 15 state or local government agencies or authorities; and 16 (h) the penalties to be imposed on the project applicant if the terms 17 of the agreement are not met. 18 2. The length of a financial assistance agreement shall be limited to 19 no more than five years; provided however that the agreement may be 20 renewed for up to five additional years if the authority determines that 21 the project applicant has acted in good faith to meet the terms and 22 conditions of the agreement. In no event may financial assistance in the 23 form of a loan or exemption from taxation be provided to a project for 24 more than ten years. 25 3. The financial assistance agreement shall be made available to the 26 public on the website of the authority. 27 4. The authority shall adopt a methodology to evaluate the conformance 28 of each assisted project to the terms and conditions of the financial 29 assistance agreement. This methodology shall be made available to the 30 public on the authority's website. 31 § 2307-c. Recapture of certain financial assistance. 1. The authority, 32 pursuant to the terms and conditions of its financial assistance agree- 33 ment, may recapture financial assistance to a project from the proceeds 34 of bonds issued by the authority, mortgage recording tax exemptions, or 35 local sales or compensating use tax exemptions if (a) the project 36 violates state or federal tax law, labor law, environmental protection 37 law, or contract law, or any state or federal rule or regulation imple- 38 menting such law, as determined by a court of competent jurisdiction or 39 administrative tribunal, provided that such court or tribunal concludes 40 that the violation would cause material harm to the economy or quality 41 of life of the community; or (b) all or part of the project's business 42 activity or workforce is moved to a location outside the community 43 served by the authority and by doing so violates the terms and condi- 44 tions of its financial assistance agreement. 45 2. An authority which elects to initiate the recapture of financial 46 assistance pursuant to subdivision one of section eight hundred fifty- 47 nine-e of the general municipal law must notify the recipient of such 48 financial assistance in writing that it is in default of its financial 49 assistance agreement and may direct the recipient of financial assist- 50 ance to repay up to the full amount of such financial assistance 51 received as of the date of the written notice plus interest at the rate 52 set forth in section five thousand four of the civil practice law and 53 rules. 54 3. Financial assistance recaptured pursuant to this section and any 55 interest paid shall be redistributed to affected tax jurisdictions in 56 proportion to the amount of real property tax and other taxes whichA. 11048 21 1 would have been received by each affected tax jurisdiction had the 2 project not been tax exempt. Unless otherwise agreed to in writing by an 3 affected tax jurisdiction, the authority shall not retain any portion of 4 such funds as an administrative or project fee. 5 § 2307-d. Wages and standards. Whenever a recipient of financial 6 assistance from the authority enters into a contract, subcontract, lease 7 or other agreement for or in connection with the construction, demoli- 8 tion, reconstruction, rehabilitation, repair, or renovation of an 9 assisted project, the recipient of financial assistance shall pay work- 10 ers engaged in such work no less than the prevailing rate of wage and 11 supplements under article eight of the labor law. 12 § 17. Section 2315 of the public authorities law, as amended by chap- 13 ter 357 of the laws of 1993, subdivision 1 as amended by chapter 386 of 14 the laws of 2019, is amended to read as follows: 15 § 2315. Uniform [tax exemption] financial assistance policy. 1. The 16 authority shall [establish] adopt a uniform [tax exemption] financial 17 assistance policy, [with input from] subject to the approval of affected 18 local taxing jurisdictions, which shall be applicable to provisions of 19 financial assistance pursuant to section twenty-three hundred seven of 20 this title and shall provide guidelines for the claiming of real proper- 21 ty, mortgage recording, and sales tax exemptions. Such guidelines shall 22 include, but not be limited to: period of exemption; payments in lieu of 23 taxes as a percentage of [exemption] taxes that would have been levied 24 by or on behalf of affected tax jurisdictions if the project was not 25 exempt by reason of authority involvement; types of projects for which 26 exemptions may be claimed; procedures for payments in lieu of taxes and 27 instances in which real property appraisals are to be performed as a 28 part of an application for tax exemption; in addition, the authority in 29 adopting such policy shall consider such issues as: the extent to which 30 a project will create or retain permanent, private sector jobs; the 31 estimated value of any tax exemption to be provided; whether affected 32 tax jurisdictions should be reimbursed by the project occupant if a 33 project does not fulfill the purposes for which an exemption was 34 provided; the impact of a proposed project on existing and proposed 35 businesses and economic development projects in the vicinity; the amount 36 of private sector investment generated or likely to be generated by the 37 proposed project; the demonstrated public support for the proposed 38 project; the likelihood of accomplishing the proposed project in a time- 39 ly fashion; the effect of the proposed project upon the environment; the 40 extent to which the project will utilize, to the fullest extent practi- 41 cable and economically feasible, resource conservation, energy efficien- 42 cy, green technologies, and alternative and renewable energy measures; 43 the extent to which the proposed project will require the provision of 44 additional services, including, but not limited to additional educa- 45 tional, transportation, police, emergency medical or fire services; and 46 the extent to which the proposed project will provide additional sources 47 of revenue for municipalities and school districts. The adopted uniform 48 financial assistance policy shall be provided to the chief executive 49 officer and members of the governing body of each affected tax jurisdic- 50 tion and shall be made available for public inspection at the authori- 51 ty's office and on the authority's website upon its adoption. 52 2. The authority shall [establish a procedure] adopt criteria for 53 deviation from the uniform [tax exemption] financial assistance policy 54 required pursuant to this section which shall be subject to the approval 55 of affected local tax jurisdictions. The authority shall set forth in 56 writing the reasons for deviation from such policy, and shall furtherA. 11048 22 1 notify the affected local taxing jurisdictions of the proposed deviation 2 from such policy and the reasons therefor not less than sixty days 3 before such deviation from the uniform tax exemption policy shall take 4 effect. 5 § 18. Subdivision 1 of section 2976 of the public authorities law, as 6 amended by section 1 of part C of chapter 19 of the laws of 2010, is 7 amended to read as follows: 8 1. Notwithstanding any other law to the contrary, public benefit 9 corporations (which for purposes of this section shall include indus- 10 trial development agencies created pursuant to title one of article 11 eighteen-A of the general municipal law or any other provision of law 12 and the New York city housing development corporation created pursuant 13 to article twelve of the private housing finance law) which issue bonds, 14 notes or other obligations and not-for-profit corporations that issue 15 bonds on behalf of the state or a political subdivision thereof shall 16 pay to the state a bond issuance charge upon the issuance of such bonds 17 in an amount determined pursuant to subdivision two of this section. 18 Such charge shall be paid to the state department of taxation and 19 finance, upon forms prescribed therefor, no later than fifteen days from 20 the end of the month within which such bonds are issued. 21 § 19. The not-for-profit corporation law is amended by adding a new 22 section 206 to read as follows: 23 § 206. Financial assistance agreement. 24 1. A corporation, including a local development corporation, deter- 25 mined to be a local authority pursuant to subdivision two of section two 26 and paragraph (j) of subdivision one of section six of the public 27 authorities law that provides financial assistance to a project in the 28 form of a grant, loan, exemption from taxation, or contribution for the 29 public purpose of relieving or reducing unemployment, promoting and 30 marketing job opportunities, or supporting the formation, relocation, 31 expansion, or retention of business shall enter into a written agreement 32 with the project applicant prior to providing financial assistance. 33 2. The agreement shall include the following information: 34 (a) a description of the amount and type of financial assistance to be 35 provided by the corporation, including a description and the value of 36 property conveyed at less than fair market value; 37 (b) a description of the amount of financing to be provided by the 38 project applicant, including the amount and type of capital investment 39 to be provided; 40 (c) the purpose of the project; 41 (d) the amount, types, sources and commitments of any private financ- 42 ing; 43 (e) the projected number of new full-time and part-time positions 44 expected to be created over the period of financial assistance, and an 45 estimated schedule by year of when those positions will be created; 46 (f) the number and types of full-time and part-time jobs to be 47 retained, and the number of filled positions at the project as of the 48 date the agreement is executed; 49 (g) the types and value of other forms of financial assistance 50 provided to the project or requested by the project applicant from other 51 state or local government agencies or authorities; and 52 (h) the penalties to be imposed on the project applicant if the terms 53 of the agreement are not met. 54 3. The length of a financial assistance agreement shall be limited to 55 no more than five years; provided however that the agreement may be 56 renewed for up to five additional years if the corporation determinesA. 11048 23 1 that the project applicant has acted in good faith to meet the terms and 2 conditions of the agreement. In no event may financial assistance in the 3 form of a loan or exemption from taxation be provided to a project for 4 more than ten years. 5 4. The financial assistance agreement shall be made available to the 6 public on the website of the corporation. 7 5. The corporation shall adopt a methodology to evaluate the conform- 8 ance of each assisted project to the terms and conditions of the finan- 9 cial assistance agreement. This methodology shall be made available to 10 the public on the corporation's website. 11 6. (a) The corporation, pursuant to the terms and conditions of its 12 financial assistance agreement, may recapture financial assistance to a 13 project from grants, loans, real property tax exemptions, mortgage 14 recording tax exemptions, or local sales or compensating use tax 15 exemptions if (i) the project violates state or federal tax law, labor 16 law, environmental protection law, or contract law, or any state or 17 federal rule or regulation implementing such law, as determined by a 18 court of competent jurisdiction or administrative tribunal, provided 19 that such court or tribunal concludes that the violation would cause 20 material harm to the economy or quality of life of the community; or 21 (ii) all or part of the project's business activity or workforce is 22 moved to a location outside the community served by the corporation and 23 by doing so violates the terms and conditions of its financial assist- 24 ance agreement. 25 (b) A corporation which elects to initiate the recapture of financial 26 assistance pursuant to subdivision one of this section must notify the 27 recipient of such financial assistance in writing that it is in default 28 of its financial assistance agreement and may direct the recipient of 29 financial assistance to repay up to the full amount of such financial 30 assistance received as of the date of the written notice plus interest 31 at the rate set forth in section five thousand four of the civil prac- 32 tice law and rules. 33 (c) Financial assistance recaptured pursuant to this section and any 34 interest paid shall be redistributed to affected tax jurisdictions in 35 proportion to the amount of real property tax and other taxes which 36 would have been received by each affected tax jurisdiction had the 37 project not been tax exempt. Unless otherwise agreed to in writing by an 38 affected tax jurisdiction, the corporation shall not retain any portion 39 of such funds as an administrative or project fee. 40 7. Wages and standards. Whenever a recipient of financial assistance 41 from the corporation enters into a contract, subcontract, lease or other 42 agreement for or in connection with the construction, demolition, recon- 43 struction, rehabilitation, repair, or renovation of an assisted project, 44 the recipient of financial assistance shall pay workers engaged in such 45 work no less than the prevailing rate of wage and supplements under 46 article eight of the labor law. 47 8. For the purposes of this section, "project" shall mean any land, 48 any building or other improvement, and all real and personal properties 49 located within the state of New York and within or outside or partially 50 within and partially outside the municipality for whose benefit the 51 agency was created, including, but not limited to, machinery, equipment 52 and other facilities deemed necessary or desirable in connection there- 53 with, or incidental thereto, whether or not now in existence or under 54 construction, which shall be suitable for manufacturing, warehousing, 55 research, commercial or industrial purposes or other economically sound 56 purposes identified and called for to implement a state designated urbanA. 11048 24 1 cultural park management plan as provided in title G of the parks, 2 recreation and historic preservation law and which may include or mean 3 an industrial pollution control facility, a recreation facility, educa- 4 tional or cultural facility, a horse racing facility, a railroad facili- 5 ty or an automobile racing facility, provided, however, that no agency 6 shall use its funds or provide financial assistance in respect of any 7 project wholly or partially outside the municipality for whose benefit 8 the agency was created without the prior consent thereto by the govern- 9 ing body or bodies of all the other municipalities in which a part or 10 parts of the project is, or is to be, located, and such portion of the 11 project located outside such municipality for whose benefit the agency 12 was created shall be contiguous with the portion of the project inside 13 such municipality. 14 § 20. Paragraphs (a), (b) and (d) of section 1411 of the not-for-pro- 15 fit corporation law, paragraph (a) as amended by chapter 847 of the laws 16 of 1970 and paragraph (b) as amended by chapter 549 of the laws of 2013, 17 are amended to read as follows: 18 (a) Purposes. 19 This section shall provide an additional and alternate method of 20 incorporation or reincorporation of not-for-profit corporations for any 21 of the purposes set forth in this paragraph [and shall not be deemed to22alter, impair or diminish the purposes, rights, powers or privileges of23any corporation heretofore or hereafter incorporated under this section24or under the stock or business corporation laws]. Corporations may be 25 incorporated or reincorporated under this section as not-for-profit 26 local development corporations operated for the exclusively charitable 27 or public purposes of relieving and reducing unemployment, promoting and 28 providing for additional and maximum employment, bettering and maintain- 29 ing job opportunities, instructing or training individuals to improve or 30 develop their capabilities for such jobs, carrying on scientific 31 research for the purpose of aiding a community or geographical area by 32 attracting new industry to the community or area or by encouraging the 33 development of, or retention of, an industry in the community or area[,34and lessening the burdens of government and acting in the public inter-35est, and any]. Any one or more counties, cities, towns or villages of 36 the state, or any combination thereof, or the New York job development 37 authority in exercising its power under the public authorities law to 38 encourage the organization of local development corporations, may cause 39 such corporations to be incorporated by public officers or private indi- 40 viduals or reincorporated upon compliance with the requirements of this 41 section, and it is hereby found, determined and declared that in carry- 42 ing out said purposes and in exercising the powers conferred by para- 43 graph (b) of this section such corporations will be acting in the public 44 interest and performing an essential governmental function. 45 (b) Type of corporation. 46 A local development corporation [is] incorporated for one or more of 47 the purposes described in paragraph (a) of this section shall be a char- 48 itable corporation under this chapter. 49 (d) Purchase or lease of real property owned by a county, city, town 50 or village. 51 (1) The local legislative body of a county, city, town or village or, 52 if there is a board of estimate in a city, then the board of estimate, 53 may by resolution determine that specifically described real property 54 owned by the county, city, town or village is not required for use by 55 such county, city, town or village and authorize the county, city, town 56 or village to sell or lease such real property to a local developmentA. 11048 25 1 corporation incorporated or reincorporated under this article; provided, 2 however, that title to such land be not declared inalienable as a forest 3 preserve or a parkland. 4 (2) Notwithstanding the provisions of any general, special or local 5 law, charter or ordinance to the contrary, no such sale or lease may be 6 made without appraisal, public notice, (except as provided in subpara- 7 graph (4)) or public bidding [for such price or rental and upon such8terms as may be agreed upon between the county, city, town or village9and said local development corporation]; provided, however, that in case 10 of a lease the term may not exceed ninety-nine years and provided, 11 further, that in cities having a population of one million or more, no 12 such sale or lease shall be made without the approval of a majority of 13 the members of the borough [improvement] board of the borough in which 14 such real property is located. 15 (3) Before any sale or lease to a local development corporation incor- 16 porated or reincorporated under this article shall be authorized, a 17 public hearing shall be held by the local legislative body[, or by the18board of estimate, as the case may be,] to consider the proposed sale or 19 lease. 20 (4) Notice of such hearing shall be published at least ten days before 21 the date set for the hearing in such publication and in such manner as 22 may be designated by the local legislative body[, or the board of esti-23mate as the case may be]. Such notice shall include a description of the 24 real property proposed to be sold or leased; a statement of the esti- 25 mated fair market value of the real property proposed to be sold or 26 leased; the value of the financial consideration to be received by the 27 county, city, town or village from such sale or lease of the real prop- 28 erty; and a statement of the intended use or disposition of such real 29 property by the local development corporation. 30 (5) A local development corporation, incorporated or reincorporated 31 under this section, which purchases or leases real property from a coun- 32 ty, city, town or village, shall not, without the written approval of 33 the county, city, town or village, use such real property for any 34 purpose except the purposes set forth in the certificate of incorpo- 35 ration or reincorporation of said local development corporation. In the 36 event such real property is used in violation of the restrictions of 37 this paragraph, the attorney-general may bring an action or special 38 proceeding to enjoin the unauthorized use. 39 § 21. Paragraphs (e), (f), (g), (h), and (i) of section 1411 of the 40 not-for-profit corporation law are relettered paragraphs (f), (g), (h), 41 (i), and (j) and a new paragraph (e) is added to read as follows: 42 (e) Contracts with municipalities. 43 Any contract or other agreement between a local development corpo- 44 ration and a municipality or state authority or local authority for one 45 or more of the purposes described in paragraph (a) of this section 46 shall: (i) cause the local development corporation to be defined as a 47 local authority pursuant to subdivision two of section two of the public 48 authorities law; (ii) provide for the municipality or state authority or 49 local authority to receive fair and adequate consideration for the 50 services provided by the local development corporation; (iii) be subject 51 to the requirements of article five-A of the general municipal law; and 52 (iv) have a term not to exceed ten years, subject to one or more 53 renewals for a term not to exceed ten years upon the mutual consent of 54 the parties; provided however that a contract with a municipality shall 55 not be used to finance the municipality's operations or to acquire or 56 improve an asset for use of the municipality.A. 11048 26 1 § 22. Paragraph (j) of section 1411 of the not-for-profit corporation 2 law, as relettered by section twenty-one of this act, is amended to read 3 as follows: 4 (j) Effect of section. 5 Corporations incorporated or reincorporated under this section shall 6 be organized and operated exclusively for the purposes set forth in 7 paragraph (a), shall have, in addition to the powers otherwise conferred 8 by law, the powers conferred by paragraph (c) of this section and shall 9 be subject to all the restrictions and limitations imposed by [paragraph10(e) and paragraph (g)] paragraphs (c), (d), (e), (h) and (i) of this 11 section. In so far as the provisions of this section are inconsistent 12 with the provisions of any other law, general or special, the provisions 13 of this section shall be controlling as to corporations incorporated or 14 reincorporated hereunder. 15 § 23. Federal preemption and severability. The provisions of each 16 section of this act shall be deemed severable, and the declaration by a 17 court of competent jurisdiction that any part thereof is preempted or 18 otherwise invalid shall not affect the remaining parts thereof. 19 § 24. This act shall take effect on the thirtieth day after it shall 20 have become a law, or January 1, 2021, whichever shall come first; 21 provided, however, that section fifteen of this act shall apply to bonds 22 issued or re-issued on or after the effective date of this act; 23 provided, however, that the amendments to subdivisions 19, 20 and 22 of 24 section 858 of the general municipal law made by section three of this 25 act shall not affect the expiration of such subdivisions and shall be 26 deemed to expire therewith; and provided further, however, that the 27 amendments to subdivision 21 of section 858 of the general municipal law 28 made by section three of this act shall not affect the repeal of such 29 subdivision and shall be deemed repealed therewith.