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.
                                                                   LBD15432-03-0

        A. 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 the

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     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 counsel

        A. 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,
    45  payments  in  lieu  of taxes made by an agency shall be allocated in the
    46  same proportions as they had  been  prior  to  January  first,  nineteen
    47  hundred  ninety-three  for  so  long as the agency's activities render a
    48  project 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  or

        A. 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  the

        A. 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 administrative

        A. 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 shall

        A. 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 of

        A. 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  [and
     3  four] 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; and

        A. 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 affected

        A. 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 before

        A. 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 which

        A. 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 further

        A. 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  determines

        A. 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 urban

        A. 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 to
    22  alter, impair or diminish the purposes, rights, powers or privileges  of
    23  any  corporation heretofore or hereafter incorporated under this section
    24  or 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[,
    34  and  lessening the burdens of government and acting in the public inter-
    35  est, 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  development

        A. 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  such
     8  terms  as  may  be agreed upon between the county, city, town or village
     9  and 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 the
    18  board 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-
    23  mate 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 [paragraph
    10  (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.
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