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 - Dead) 2020-01-08 - 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. LBD10088-02-9A. 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 withinA. 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.