Bill Text: NY A06311 | 2019-2020 | General Assembly | Introduced


Bill Title: Establishes a residency requirement for state economic development assistance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-03-05 - referred to economic development [A06311 Detail]

Download: New_York-2019-A06311-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          6311
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      March 5, 2019
                                       ___________
        Introduced  by M. of A. ORTIZ -- read once and referred to the Committee
          on Economic Development
        AN ACT to amend the economic development law, the public authorities law
          and the New York state urban development corporation act, in  relation
          to establishing a residency requirement for state economic development
          assistance
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The economic development law is amended  by  adding  a  new
     2  section 107 to read as follows:
     3    §  107.  Residency requirement. (1) The department shall require, as a
     4  condition of any business incentive provided by  or  on  behalf  of  the
     5  department  to  a recipient firm, that: (a) such firm shall not relocate
     6  outside the state during the term of such business incentive  or  for  a
     7  period of ten years after the award of such business incentive, whichev-
     8  er is longer, unless the full amount of such assistance is repaid to the
     9  state  and  a  penalty  equal  to  five  percent of the total assistance
    10  received is paid to the state, and (b) if the recipient  firm  relocates
    11  within the state during the term of such business assistance in the case
    12  of  a loan or loan guarantee, or within two years of receiving an award,
    13  grant, or other assistance, such firm shall offer employment at the  new
    14  location  to its employees from the original location if such employment
    15  is available.
    16    (2) Notwithstanding any inconsistent provision of law, upon a  finding
    17  that  a recipient firm relocates from one community to another community
    18  within the state within two years of  receiving  a  business  incentive,
    19  such  firm shall be deemed ineligible to receive any additional business
    20  incentives for a period of five years from the date of relocation.  Upon
    21  a  finding  that  a recipient firm relocates outside of the state within
    22  two years of receiving a business incentive, such firm shall  be  deemed
    23  ineligible to receive any additional business incentives.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10088-02-9

        A. 6311                             2
     1    (3)  A  waiver  of  the provisions of this section may be granted to a
     2  recipient firm upon a determination of a legitimate hardship pursuant to
     3  section fifty-one of the public authorities law.
     4    (4)  For  the purposes of this section, the following terms shall have
     5  the following meanings:
     6    (a) "business incentive" means any award, contract for services, grant
     7  or other financial assistance provided by or on behalf of the department
     8  to assist an eligible recipient firm in retention or creation of jobs in
     9  the state which, alone or in combination with other financial assistance
    10  provided by a state agency, public authority, or public  benefit  corpo-
    11  ration, exceeds five hundred thousand dollars;
    12    (b) "legitimate hardship" means a circumstance under which a recipient
    13  firm is compelled to relocate due to unforeseen circumstances beyond the
    14  direct or indirect control of such recipient firm;
    15    (c)  "recipient  firm"  means  any person, firm, partnership, company,
    16  association, or corporation that is the recipient of a  business  incen-
    17  tive; and
    18    (d)  "relocate"  means  the  physical  transfer of the operations of a
    19  recipient firm in its entirety or of any division of  a  recipient  firm
    20  which independently receives a business incentive from the location such
    21  business  or  division  occupied  at  the time it accepted such business
    22  incentive.
    23    (5) The department shall adopt  rules  and  regulations  necessary  to
    24  implement the provisions of this section.
    25    (6)  On  or before October first, two thousand twenty and on or before
    26  such date annually thereafter, the commissioner shall submit a report to
    27  the governor, the speaker of the assembly, and the  temporary  president
    28  of  the senate with respect to the implementation and enforcement of the
    29  provisions of this section. Such report shall include, but not be limit-
    30  ed to, a listing of those recipient firms subject to the  provisions  of
    31  this section; the total amount of the business incentive associated with
    32  each  firm; and the aggregate amount of funds returned or anticipated to
    33  be returned to the state.
    34    § 2. The public authorities law is amended by  adding  a  new  section
    35  1803-b to read as follows:
    36    § 1803-b. Residency requirement. (1) The authority shall require, as a
    37  condition  of any business incentive provided to a recipient firm, that:
    38  (a) such recipient firm shall not relocate outside the state during  the
    39  term  of  such business incentive or for a period of ten years after the
    40  award of such business incentive, whichever is longer, unless  the  full
    41  amount  of such assistance is repaid to the state and a penalty equal to
    42  five percent of the total assistance received is paid to the state,  and
    43  (b)  if the recipient firm relocates within the state during the term of
    44  such business assistance in the case of a loan  or  loan  guarantee,  or
    45  within two years of receiving an award, grant, or other assistance, such
    46  firm  shall  offer  employment at the new location to its employees from
    47  the original location if such employment is available.
    48    (2) Notwithstanding any inconsistent provision of law, upon a  finding
    49  that  a recipient firm relocates from one community to another community
    50  within the state within two years of  receiving  a  business  incentive,
    51  such  firm shall be deemed ineligible to receive any additional business
    52  incentives for a period of five years from the date of relocation.  Upon
    53  a  finding  that  a recipient firm relocates outside of the state within
    54  two years of receiving a business incentive, such firm shall  be  deemed
    55  ineligible to receive any additional business incentives.

        A. 6311                             3
     1    (3)  A  waiver  of  the provisions of this section may be granted to a
     2  recipient firm upon a determination of a legitimate hardship pursuant to
     3  section fifty-one of this chapter.
     4    (4)  For  the purposes of this section, the following terms shall have
     5  the following meanings:
     6    (a) "recipient firm" means any  person,  firm,  partnership,  company,
     7  association,  or  corporation that is the recipient of a business incen-
     8  tive;
     9    (b) "business incentive" means  any  award,  grant,  interest  subsidy
    10  grant,  loan,  loan  guarantee,  or  other  financial assistance that is
    11  provided by or on behalf of the authority to assist an eligible  recipi-
    12  ent  firm  in  the retention or creation of jobs in the state and which,
    13  alone or in combination with other financial assistance  provided  by  a
    14  state  agency,  public authority, or public benefit corporation, exceeds
    15  five hundred thousand dollars;
    16    (c) "legitimate hardship" means a circumstance under which a recipient
    17  firm is compelled to relocate due to unforeseen circumstances beyond the
    18  direct or indirect control of such recipient firm; and
    19    (d) "relocate" means the physical transfer  of  the  operations  of  a
    20  recipient  firm  in  its entirety or of any division of a recipient firm
    21  which independently receives a business incentive from the location such
    22  business or division occupied at the  time  it  accepted  such  business
    23  incentive.
    24    (5)  The  authority  shall  adopt  rules  and regulations necessary to
    25  implement the provisions of this section.
    26    (6) On or before October first, two thousand twenty and on  or  before
    27  such date annually thereafter, the chairman shall submit a report to the
    28  governor,  the  speaker  of the assembly, and the temporary president of
    29  the senate with respect to the implementation  and  enforcement  of  the
    30  provisions of this section. Such report shall include, but not be limit-
    31  ed  to,  a listing of those recipient firms subject to the provisions of
    32  this section; the total amount of the business incentive associated with
    33  each firm; and the aggregate amount of funds returned or anticipated  to
    34  be returned to the state.
    35    §  3.  The  public  authorities law is amended by adding a new section
    36  3105-b to read as follows:
    37    § 3105-b. Residency requirement. (1) The corporation shall require, as
    38  a condition of any business incentive  provided  to  a  recipient  firm,
    39  that:  (a)  such  recipient  firm  shall  not relocate outside the state
    40  during the term of such business incentive or for a period of ten  years
    41  after  the award of such business incentive, whichever is longer, unless
    42  the full amount of such assistance is repaid to the state and a  penalty
    43  equal  to  five  percent of the total assistance received is paid to the
    44  state, and (b) if the recipient firm relocates within the  state  during
    45  the term of such business assistance in the case of a loan or loan guar-
    46  antee,  or  within  two  years  of  receiving  an award, grant, or other
    47  assistance, such firm shall offer employment at the new location to  its
    48  employees from the original location if such employment is available.
    49    (2)  Notwithstanding any inconsistent provision of law, upon a finding
    50  that a recipient firm relocates from one community to another  community
    51  within  the  state  within  two years of receiving a business incentive,
    52  such firm shall be deemed ineligible to receive any additional  business
    53  incentives  for a period of five years from the date of relocation. Upon
    54  a finding that a recipient firm relocates outside of  the  state  within
    55  two  years  of receiving a business incentive, such firm shall be deemed
    56  ineligible to receive any additional business incentives.

        A. 6311                             4
     1    (3) A waiver of the provisions of this section may  be  granted  to  a
     2  recipient firm upon a determination of a legitimate hardship pursuant to
     3  section fifty-one of this chapter.
     4    (4)  For  the purposes of this section, the following terms shall have
     5  the following meanings:
     6    (a) "recipient firm" means any  person,  firm,  partnership,  company,
     7  association  or  corporation  that is the recipient of a business incen-
     8  tive;
     9    (b)  "business  incentive"  means  any  award,  grant,  contract   for
    10  services,  interest subsidy grant, loan, loan guarantee, or other finan-
    11  cial assistance that is provided by or on behalf of the  corporation  to
    12  assist  an  eligible recipient firm in the retention or creation of jobs
    13  in the state and which, alone or in  combination  with  other  financial
    14  assistance provided by a state agency, public authority, or public bene-
    15  fit corporation, exceeds five hundred thousand dollars;
    16    (c) "legitimate hardship" means a circumstance under which a recipient
    17  firm is compelled to relocate due to unforeseen circumstances beyond the
    18  direct or indirect control of such recipient firm; and
    19    (d)  "relocate"  means  the  physical  transfer of the operations of a
    20  recipient firm in its entirety or of any division of  a  recipient  firm
    21  which independently receives a business incentive from the location such
    22  business  or  division  occupied  at  the time it accepted such business
    23  incentive.
    24    (5) The corporation shall adopt rules  and  regulations  necessary  to
    25  implement the provisions of this section.
    26    (6)  On  or before October first, two thousand twenty and on or before
    27  such date annually thereafter, the chairman shall submit a report to the
    28  governor, the speaker of the assembly, and the  temporary  president  of
    29  the  senate  with  respect  to the implementation and enforcement of the
    30  provisions of this section. Such report shall include, but not be limit-
    31  ed to, a listing of those recipient firms subject to the  provisions  of
    32  this section; the total amount of the business incentive associated with
    33  each  firm; and the aggregate amount of funds returned or anticipated to
    34  be returned to the state.
    35    § 4. Section 1 of chapter 174 of the laws of  1968,  constituting  the
    36  New York state urban development corporation act, is amended by adding a
    37  new section 31-b to read as follows:
    38    § 31-b. Residency requirement. (1) The corporation shall require, as a
    39  condition  of any business incentive provided to a recipient firm, that:
    40  (a) such recipient firm shall not relocate outside the state during  the
    41  term  of  such business incentive or for a period of ten years after the
    42  award of such business incentive, whichever is longer, unless  the  full
    43  amount  of such assistance is repaid to the state and a penalty equal to
    44  five percent of the total assistance received is paid to the state,  and
    45  (b)  if the recipient firm relocates within the state during the term of
    46  such business assistance in the case of a loan  or  loan  guarantee,  or
    47  within  two years of receiving an award, grant or other assistance, such
    48  firm shall offer employment at the new location to  its  employees  from
    49  the original location if such employment is available.
    50    (2)  Notwithstanding any inconsistent provision of law, upon a finding
    51  that a recipient firm relocates from one community to another  community
    52  within  the  state  within  two years of receiving a business incentive,
    53  such firm shall be deemed ineligible to receive any additional  business
    54  incentives  for a period of five years from the date of relocation. Upon
    55  a finding that a recipient firm relocates outside of  the  state  within

        A. 6311                             5
     1  two  years  of receiving a business incentive, such firm shall be deemed
     2  ineligible to receive any additional business incentives.
     3    (3)  A  waiver  of  the provisions of this section may be granted to a
     4  recipient firm upon a determination of a legitimate hardship pursuant to
     5  section fifty-one of the public authorities law.
     6    (4) For the purposes of this section, the following terms  shall  have
     7  the following meanings:
     8    (a)  "recipient  firm"  means  any person, firm, partnership, company,
     9  association, or corporation that is the recipient of a  business  incen-
    10  tive;
    11    (b)  "business  incentive"  means  any  award, grant, interest subsidy
    12  grant, loan, loan guarantee,  or  other  financial  assistance  that  is
    13  provided by or on behalf of the corporation to assist an eligible recip-
    14  ient  firm  in the retention or creation of jobs in the state and which,
    15  alone or in combination with other financial assistance  provided  by  a
    16  state  agency,  public authority, or public benefit corporation, exceeds
    17  five hundred thousand dollars;
    18    (c) "legitimate hardship" means a circumstance under which a recipient
    19  firm is compelled to relocate due to unforeseen circumstances beyond the
    20  direct or indirect control of such recipient firm; and
    21    (d) "relocate" means the physical transfer  of  the  operations  of  a
    22  recipient  firm  in  its entirety or of any division of a recipient firm
    23  which independently receives a business incentive from the location such
    24  business or division occupied at the  time  it  accepted  such  business
    25  incentive.
    26    (5)  The  corporation  shall  adopt rules and regulations necessary to
    27  implement the provisions of this section.
    28    (6) On or before October first, two thousand twenty and on  or  before
    29  such date annually thereafter, the chairman shall submit a report to the
    30  governor,  the  speaker  of the assembly, and the temporary president of
    31  the senate with respect to the implementation  and  enforcement  of  the
    32  provisions of this section. Such report shall include, but not be limit-
    33  ed  to,  a listing of those recipient firms subject to the provisions of
    34  this section; the total amount of the business incentive associated with
    35  each firm; and the aggregate amount of funds returned or anticipated  to
    36  be returned to the state.
    37    § 5. Section 51 of the public authorities law is amended by adding two
    38  new subdivisions 3-b and 3-c to read as follows:
    39    3-b.  Upon a determination of legitimate hardship, the board may waive
    40  any requirements established pursuant to section one  hundred  seven  of
    41  the  economic  development  law,  sections  eighteen hundred three-b and
    42  thirty-one hundred five-b of this chapter, or  section  thirty-one-b  of
    43  the  New  York state urban development corporation act. In making such a
    44  determination, the board shall find that sufficient justification exists
    45  for the failure of a recipient firm to fully execute  and  complete  the
    46  terms and conditions associated with the award of a business incentive.
    47    3-c.  Insofar as the provisions of subdivision three-b of this section
    48  are inconsistent with the provisions of any  other  general  or  special
    49  law, the provisions of such subdivision three-b shall be controlling.
    50    §  6.  This  act shall take effect immediately and shall apply only to
    51  business incentives awarded on and after such date.
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