Bill Text: NY A07455 | 2019-2020 | General Assembly | Introduced


Bill Title: Makes various provisions to reform local development corporations and industrial development agencies: conflicts of interest, standard tax exemption policies, municipal input, more information to be made public, economic impact statements, public hearings, and payment of prevailing wages.

Spectrum: Moderate Partisan Bill (Democrat 12-3)

Status: (Introduced) 2019-05-03 - referred to local governments [A07455 Detail]

Download: New_York-2019-A07455-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          7455
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       May 3, 2019
                                       ___________
        Introduced  by M. of A. SIMON -- read once and referred to the Committee
          on Local Governments
        AN ACT to amend the  not-for-profit  corporation  law  and  the  general
          municipal law, in relation to reforming local development corporations
          and industrial development agencies
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subparagraphs 2 and 3 of paragraph (d) of section  1411  of
     2  the  not-for-profit  corporation  law are amended and a new subparagraph
     3  2-a is added to read as follows:
     4    (2)  Notwithstanding the provisions of any general, special, or  local
     5  law,  charter,  or  ordinance  to the contrary, such sale or lease [may]
     6  shall be made [without] with an appraisal,  public  notice,  (except  as
     7  provided  in  subparagraph  (4)  of  this paragraph) [or] and subject to
     8  public bidding for such price or rental [and upon such terms as  may  be
     9  agreed  upon  between  the  county, city, town or village and said local
    10  development corporation; provided,  however,  that  in].  In case  of  a
    11  lease, the term may not exceed ninety-nine years; and provided, further,
    12  that, in cities having a population of one million or more, no such sale
    13  or lease shall be made without the approval of a majority of the members
    14  of  the  [borough  improvement  board of the borough] community board or
    15  boards for the community district or districts in which such real  prop-
    16  erty  is located and the respective borough board, if such real property
    17  is located in two or more community districts.
    18    (2-a) (I) The corporation shall prepare or cause to  be  prepared,  by
    19  contract  or  otherwise, an economic impact statement on any action that
    20  it proposes or approves which may  have  a  significant  effect  on  the
    21  affected  local  economy  and local community. The corporation shall use
    22  all practicable means to realize the policies and  goals  set  forth  in
    23  this  section,  and  shall act and choose alternatives which, consistent
    24  with social, economic, environmental, labor, and other essential consid-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06613-01-9

        A. 7455                             2
     1  erations, to the maximum extent practicable, minimize or  avoid  adverse
     2  economic  effects,  including  effects  revealed  in the economic impact
     3  statement process. Such a statement shall include a  detailed  statement
     4  setting forth the following:
     5    (A)  a  description of the proposed action and its economic and social
     6  setting;
     7    (B) the economic and social impact of the proposed  action,  including
     8  short-term and long-term effects, especially to the affected community;
     9    (C)  any  adverse  economic effects which cannot be avoided should the
    10  proposal be implemented;
    11    (D) alternatives to the proposed action;
    12    (E)  any  irreversible  and  irretrievable  commitments   and   social
    13  resources  which  would be involved in the proposed action, should it be
    14  implemented;
    15    (F) mitigation measures proposed to minimize the economic, social,  or
    16  other essential impacts; and
    17    (G) the growth-inducing aspects of the proposed action, where applica-
    18  ble  and  significant.  Such  a statement shall also include copies or a
    19  summary of the substantive comments received by the corporation pursuant
    20  to clause (IV) of this subparagraph and the  corporation's  response  to
    21  such comments. The purpose of an economic impact statement is to provide
    22  detailed  information about the effect which a proposed action is likely
    23  to have on the economy, employment  conditions,  and  social  character-
    24  istics of a community, to list ways in which any adverse effects of such
    25  an  action  might  be  minimized, and to suggest alternatives to such an
    26  action so as to form the basis for a decision as to whether  or  not  to
    27  undertake  or approve such action. Such statement shall be clearly writ-
    28  ten in a concise manner capable of being  read  and  understood  by  the
    29  public, shall deal with the specific, significant economic impacts which
    30  can be reasonably anticipated, and shall not contain more detail than is
    31  appropriate, considering the nature and magnitude of the proposed action
    32  and the significance of its potential impacts.
    33    (II)  The  corporation  may require an applicant to submit an economic
    34  report to assist the corporation in carrying out  its  responsibilities,
    35  including  the  initial determination and, (where the applicant does not
    36  prepare the economic impact statement), the preparation of  an  economic
    37  impact  statement  under  this subparagraph. The corporation may request
    38  such other information from an applicant as it deems necessary  for  the
    39  review  of  economic  and  social  impacts.  Notwithstanding  any use of
    40  outside resources or work, corporations shall make their own independent
    41  judgment of the scope, contents, and  adequacy  of  an  economic  impact
    42  statement.
    43    (III) (A) As early as possible in the formulation of a proposal for an
    44  action, the corporation shall make an initial determination as to wheth-
    45  er  or not an economic impact statement need be prepared for the action.
    46  With respect to actions involving the issuance  to  an  applicant  of  a
    47  permit  or other entitlement, the corporation shall notify the applicant
    48  in writing of its initial determination, specifying  therein  the  basis
    49  for  such determination. Notice of the initial determination, along with
    50  appropriate supporting findings on corporation actions, shall be kept on
    51  file in the main office of the corporation for public inspection. If the
    52  corporation determines that such statement is required, the  corporation
    53  or  the  applicant, at the applicant's option, shall prepare or cause to
    54  be prepared a draft economic impact statement.   If the  applicant  does
    55  not exercise the option to prepare such statement, the corporation shall
    56  prepare  it,  cause  it  to  be prepared, or terminate its review of the

        A. 7455                             3
     1  proposed action. Such statement shall describe the proposed  action  and
     2  reasonable alternatives to the action, and briefly discuss, on the basis
     3  of  information  then  available,  the  remaining  items  required to be
     4  submitted  by  clause  (I)  of this subparagraph. The purpose of a draft
     5  economic statement is to relate economic and  social  considerations  to
     6  the  inception  of  the planning process, to inform the public and other
     7  public agencies as early as possible about  proposed  actions  that  may
     8  significantly  affect the quality of the economic and social conditions,
     9  and to solicit comments which will assist the corporation in  the  deci-
    10  sion  making process in determining the economic and social consequences
    11  of the proposed action. The draft statement shall resemble in  form  and
    12  content the economic impact statement to be prepared after comments have
    13  been  received  and  considered  pursuant to clause (I) of this subpara-
    14  graph; provided, however, that  the  length  and  detail  of  the  draft
    15  economic  statement  will  necessarily reflect the preliminary nature of
    16  the proposal and the early stage at which it is prepared;
    17    (B) The draft statement shall be filed with the appropriate  governing
    18  body  of  each  municipality  or political subdivision thereof for whose
    19  benefit such corporation is established.
    20    (IV) (A) After the filing of a draft economic  impact  statement,  the
    21  corporation  shall  determine whether or not to conduct a public hearing
    22  on the economic impact of the proposed action. Such public hearing shall
    23  be held in a city, town or village where the project is proposed  to  be
    24  located or, in cities having a population of one million or more, in the
    25  community  district or districts in which such project is proposed to be
    26  located or in the respective borough, if such project is proposed to  be
    27  located  in  two or more community districts.  The corporation must give
    28  at least thirty days' published notice of such public hearing and shall,
    29  at the same time, provide notice of such hearing to the chief  executive
    30  officer  of  each  affected tax jurisdiction within which the project is
    31  proposed to be located. The notice of hearing must state  the  time  and
    32  place  of  the hearing, contain a general, functional description of the
    33  project, describe the prospective location of the project, identify  the
    34  initial  owner,  operator, or manager of the project, generally describe
    35  the financial assistance contemplated by the corporation with respect to
    36  the project, and provide an opportunity for the  public  to  review  the
    37  project  application,  which  shall include an analysis of the costs and
    38  benefits of  the  proposed  project.  The  notice  of  hearing  must  be
    39  published in the state register and the website of the corporation.
    40    (B)  If  the  corporation  determines to hold such a hearing, it shall
    41  commence the hearing within sixty days of the  filing  and,  unless  the
    42  proposed  action  is  withdrawn  from  consideration,  shall prepare the
    43  economic impact statement within forty-five days after the close of  the
    44  hearing, except as otherwise provided. The need for such a hearing shall
    45  be  determined in accordance with procedures adopted by the corporation.
    46  If no hearing is held, the corporation shall prepare and make  available
    47  the  economic impact statement within sixty days after the filing of the
    48  draft, except as otherwise provided.
    49    (C) Notwithstanding the specified time  periods  established  by  this
    50  subparagraph,  a corporation shall vary the times so established in this
    51  clause for preparation, review, and public hearings  to  coordinate  the
    52  economic  and  social  review  process with other procedures relating to
    53  review and approval or disapproval  of  an  action.  An  application  or
    54  authorization for an action upon which a draft economic impact statement
    55  is  determined  to  be  required  shall not be complete until such draft
    56  statement has been filed and accepted by the corporation as satisfactory

        A. 7455                             4
     1  with respect to scope,  content,  and  adequacy  for  purposes  of  this
     2  subparagraph.  Commencing  upon  such  acceptance,  the  economic impact
     3  statement process shall run concurrently with other procedures  relating
     4  to  the review and approval of the action, so long as reasonable time is
     5  provided for preparation, review, and public hearings  with  respect  to
     6  the draft economic impact statement.
     7    (V)  To  the  extent  possible, the economic impact statement prepared
     8  pursuant to clause (I) of this subparagraph, together with the  comments
     9  of  public  agencies  and members of the public, shall be filed with the
    10  governing body of each municipality or political subdivision thereof for
    11  whose benefit such corporation is established and made available to  the
    12  public  prior  to  acting  on  the  proposal which is the subject of the
    13  economic impact statement.
    14    (VI) A corporation may charge a fee to an  applicant  to  recover  the
    15  costs  incurred  in  preparing  or causing to be prepared or reviewing a
    16  draft economic impact statement or an economic impact statement  on  the
    17  action  which  the  applicant  requests  from the corporation; provided,
    18  however, that an applicant may not be charged a separate  fee  for  both
    19  the preparation and review of such statements. The technical services of
    20  the  corporation  may  be  made  available on a fee basis reflecting the
    21  costs thereof to a requesting applicant, which fee or fees may appropri-
    22  ately be charged by the corporation to the  applicant  under  rules  and
    23  regulations, which the corporation shall issue for such purpose.
    24    (VII)  When  a  corporation  decides to carry out or approve an action
    25  which has been the subject of an economic  impact  statement,  it  shall
    26  make an explicit finding that the requirements of this subparagraph have
    27  been met and that, consistent with social, economic, and other essential
    28  consideration,  to  the  maximum  extent  practicable, adverse economic,
    29  social, and community effects revealed in the economic impact  statement
    30  process will be minimized or avoided.
    31    (3) Before any sale or lease to a local development corporation incor-
    32  porated  or  reincorporated  under  this  article shall be authorized, a
    33  public hearing shall be held by the local legislative body, or  [by  the
    34  board  of  estimate],  in  cities  having a population of one million or
    35  more, by the community board or boards or the respective borough  board,
    36  as  the  case  may be, to consider the proposed sale or lease only after
    37  the completion of the economic impact statement required by subparagraph
    38  two-a of this paragraph. A public hearing may only be convened  if  two-
    39  thirds  of  the  board  members are present. If not, such public hearing
    40  shall not be convened and shall be  rescheduled,  subject  to  the  same
    41  quorum requirements.
    42    §  2.  Paragraph (i) of section 1411 of the not-for-profit corporation
    43  law is relettered paragraph (j) and a new paragraph (i) is added to read
    44  as follows:
    45    (i) Municipal input.
    46    (1) Board members or employees of a local development corporation must
    47  not be or have, within the past five years, been: (A) an employee or  an
    48  owner of a firm that is a paid advisor or consultant of the local devel-
    49  opment corporation, including a present or former independent auditor of
    50  the local development corporation; (B) employed by a significant suppli-
    51  er  of the local development corporation; (C) employed by and had a five
    52  percent or greater ownership interest in a supplier where sales  to  the
    53  local  development  corporation  represent  more than one percent of the
    54  sales of the supplier or more than one percent of the purchases  of  the
    55  local  development corporation; (D) a "political party chairman" as such
    56  term is defined in paragraph (k) of subdivision one of section  seventy-

        A. 7455                             5
     1  three  of  the public officers law; or (E) a lobbyist registered under a
     2  state or local law covering any jurisdiction served in whole or in  part
     3  by  the  local development corporation.  In addition, at least one-third
     4  of  all  members  shall be representative of local government, organized
     5  labor, or the engineering, business, or environmental communities.
     6    (2) The local development corporation shall file an annual report with
     7  the attorney general noting the local development  corporation's  finan-
     8  cial  activity  during  each  year,  including,  but not limited to, the
     9  amount and the reason for the amount and kinds of  financial  incentives
    10  provided  to any entity and any other data that the attorney general may
    11  require.  The report shall be submitted before February  first  of  each
    12  year.  Each  report  shall  be made available to the public in an easily
    13  accessible format, including but not limited to  an  electronic  version
    14  via the world wide web.
    15    (3)  Any  lease,  sale, or other revenues collected by the corporation
    16  shall be paid to the local governing body  in  which  real  property  or
    17  other  source  of  revenue  is  located,  and  proportionally divided if
    18  located in more than one municipality.
    19    (4) The governing body of each municipality for whose benefit a corpo-
    20  ration is established shall have the authority to approve or  disapprove
    21  any  agency  use  of  eminent domain, disposition of corporate property,
    22  issuance of bonds,  entrance  into  agreements  requiring  payments,  or
    23  entering  into  agreements  for  payments  in  lieu  of taxes. Each such
    24  governing body shall approve or disapprove any of  the  above  corporate
    25  decisions  by  majority vote. Where applicable in the enactment of local
    26  laws, the chief executive  officer  shall  approve  or  disapprove  such
    27  governing  body's decision, subject to any applicable right to override.
    28  Boards shall not violate any local zoning  laws,  ordinances,  or  regu-
    29  lations  or local development plans. Where applicable, the provisions of
    30  this subparagraph shall apply to more than one local governing body  and
    31  the New York job development authority.
    32    §  3.  Subdivision  2  of section 856 of the general municipal law, as
    33  amended by chapter 356 of the laws  of  1993,  is  amended  to  read  as
    34  follows:
    35    2.  An agency shall be a corporate governmental agency, constituting a
    36  public benefit corporation. Except as otherwise provided by special  act
    37  of  the  legislature, an agency shall consist of not less than three nor
    38  more than seven members who shall be appointed by  the  chief  executive
    39  officer,  with  the  advice  and consent of the local governing body, of
    40  each municipality and who shall serve at the pleasure of the  appointing
    41  authority.  [Such  members  may include representatives of local govern-
    42  ment, school boards, organized labor and business.] At  least  one-third
    43  of  all  members  shall be representative of local government, organized
    44  labor, or the engineering, business,  or  environmental  communities.  A
    45  member  shall  continue  to  hold  office  until his or her successor is
    46  appointed and has qualified. The governing  body  of  each  municipality
    47  shall  designate  the  first  [chairman]  chairperson  and file with the
    48  secretary of state a certificate of appointment or reappointment of  any
    49  member.  Such  members  shall receive no compensation for their services
    50  but shall be entitled to the  necessary  expenses,  including  traveling
    51  expenses,  incurred  in the discharge of their duties.  Members must not
    52  be or have, within the past five years, been:
    53    (a) an employee or an owner of a  firm  that  is  a  paid  advisor  or
    54  consultant  of  the  agency,  including  a present or former independent
    55  auditor of the agency;
    56    (b) employed by a significant supplier of the agency;

        A. 7455                             6
     1    (c) employed by and had a five percent or greater  ownership  interest
     2  in  a supplier where sales to the agency represent more than one percent
     3  of the sales of the supplier or more than one percent of  the  purchases
     4  of the agency;
     5    (d)  a "political party chairman" as such term is defined in paragraph
     6  (k) of subdivision one of section seventy-three of the  public  officers
     7  law; or
     8    (e)  a  lobbyist  registered  under  a state or local law covering any
     9  jurisdiction served in whole or in part by the agency.
    10    § 4. Subdivision 15 of section 858 of the general  municipal  law,  as
    11  added by chapter 356 of the laws of 1993, is amended to read as follows:
    12    (15)  To  enter  into  agreements requiring payments in lieu of taxes.
    13  Such agreements shall be in writing and in addition to other terms shall
    14  contain:  the amount due annually to each affected tax jurisdiction  (or
    15  a  formula  by  which  the  amount  due can be calculated), the name and
    16  address of the person, office or agency to which payment shall be deliv-
    17  ered, the date on which payment shall be made, and  the  date  on  which
    18  payment  shall  be  considered  delinquent if not paid. Unless otherwise
    19  agreed by the affected  tax  jurisdictions,  any  such  agreement  shall
    20  provide that payments in lieu of taxes shall be allocated among affected
    21  tax  jurisdictions  in proportion to the amount of real property tax and
    22  other taxes which would have been received by each affected  tax  juris-
    23  diction  had  the  project  not been tax exempt due to the status of the
    24  agency involved in the project. A copy of any such  agreement  shall  be
    25  delivered to each affected tax jurisdiction within fifteen days of sign-
    26  ing  the  agreement.  In  the  absence  of  any  such written agreement,
    27  payments in lieu of taxes made by an agency shall be  allocated  in  the
    28  same  proportions  as  they  had  been  prior to January first, nineteen
    29  hundred ninety-three for so long as the  agency's  activities  render  a
    30  project   non-taxable   by  affected  tax  jurisdictions.  Standard  tax
    31  exemption policies established in law or by agencies shall be sent annu-
    32  ally to chief executives and all members  of  governing  boards  of  all
    33  affected  tax  jurisdictions.  Any changes to the standard tax exemption
    34  policies shall also be sent to  chief  executives  and  all  members  of
    35  governing  boards  of affected tax jurisdictions. Standard tax exemption
    36  policies shall also be made available to the public and  posted  on  the
    37  agency's  website.  Every agency shall be required to maintain, and make
    38  available to all local elected officials and the public, a current sche-
    39  dule of all PILOT payments due each year and the amount of each  payment
    40  allocable to each affected tax jurisdiction on whose behalf the PILOT is
    41  being  collected.   All agencies shall maintain, and make readily avail-
    42  able to all local elected officials and the public, current schedules of
    43  project owners who are in  arrears  in  the  making  of  required  PILOT
    44  payments,  the  amounts  involved,  and the time periods involved. Every
    45  agency must ensure that all PILOT payments  are  promptly  received  and
    46  fully transmitted to the treasuries of the affected tax jurisdictions on
    47  whose behalf those PILOT payments were collected;
    48    §  5.  The  general  municipal  law is amended by adding a new section
    49  858-c to read as follows:
    50    § 858-c. Municipal input. 1. The governing body of  each  municipality
    51  for  whose  benefit an agency is established shall have the authority to
    52  approve or disapprove any agency use of eminent domain,  disposition  of
    53  agency  property,  issuance of bonds, entrance into agreements requiring
    54  payments, or entering into agreements for payments  in  lieu  of  taxes.
    55  Each  such  governing  body shall approve or disapprove any of the above
    56  agency decisions by majority vote. Where applicable in the enactment  of

        A. 7455                             7
     1  local laws, the chief executive officer shall approve or disapprove such
     2  governing body's decision, subject to any applicable right to override.
     3    2.  Agency boards shall not violate any local zoning laws, ordinances,
     4  or regulations or local development plans.
     5    § 6. Paragraphs (a) and (b) of subdivision 1 of  section  859  of  the
     6  general municipal law, paragraph (a) as added by chapter 692 of the laws
     7  of 1989 and paragraph (b) as amended by chapter 357 of the laws of 1993,
     8  are amended to read as follows:
     9    (a)  Each  agency shall maintain books and records in such form as may
    10  be prescribed by the state comptroller.  The comptroller shall prescribe
    11  rules on standardizing the calculation of tax benefits.
    12    (b) Within ninety days following the close of its  fiscal  year,  each
    13  agency  or authority shall prepare a financial statement for that fiscal
    14  year in such form as may be prescribed by the  state  comptroller.  Such
    15  statement shall be audited within such ninety day period by an independ-
    16  ent certified public accountant in accordance with government accounting
    17  standards  established  by  the United States general accounting office.
    18  The audited financial statement  shall  include  supplemental  schedules
    19  listing  all  straight-lease  transactions  and  bonds and notes issued,
    20  outstanding or retired during the applicable accounting  period  whether
    21  or  not  such bonds, notes or transactions are considered obligations of
    22  the agency, and information on PILOTs.  For each issue of bonds or notes
    23  such schedules shall provide the name  of  each  project  financed  with
    24  proceeds  of  each issue, and whether the project occupant is a not-for-
    25  profit corporation, the name and address of each owner of each  project,
    26  the  address  of  each  project,  the estimated amount of tax exemptions
    27  authorized for each project, the purpose for which each bond or note was
    28  issued, date of issue, interest rate at issuance  and  if  variable  the
    29  range of interest rates applicable, maturity date, federal tax status of
    30  each  issue,  and an estimate of the number of jobs created and retained
    31  by each project. For each  straight-lease  transaction,  such  schedules
    32  shall provide the name of each project, and whether the project occupant
    33  is  a  not-for-profit corporation, the name and address of each owner of
    34  each project, the estimated amount of tax exemptions authorized for each
    35  project, the purpose for which each transaction was made, the method  of
    36  financial  assistance  utilized  by  the  project,  other  than  the tax
    37  exemptions claimed by the project and an estimate of the number of  jobs
    38  created and retained by each project.
    39    §  7.  Section 859-a of the general municipal law, as added by chapter
    40  356 of the laws of 1993, and subdivisions 4, 5 and 6 as added by chapter
    41  563 of the laws of 2015, is amended to read as follows:
    42    § 859-a. Additional  prerequisites  to  the  provisions  of  financial
    43  assistance,  economic  impact  statements  and public hearings. Prior to
    44  providing any financial assistance of more  than  one  hundred  thousand
    45  dollars  to  any  project,  the  agency  must  comply with the following
    46  prerequisites:
    47    1. The agency must adopt a resolution describing the project  and  the
    48  financial  assistance  that  the agency is contemplating with respect to
    49  such project. Agencies must maintain a  list  of  all  pending  projects
    50  about  which they have been contacted, and make such lists available for
    51  public inspection, including but not limited to publishing the lists  on
    52  the  agency's  website.  If any person requests more information about a
    53  particular project, the agency shall provide such information  as  expe-
    54  ditiously  as  possible.  Such  assistance  shall be consistent with the
    55  uniform tax exemption policy adopted by the agency pursuant to  subdivi-
    56  sion four of section eight hundred seventy-four of this [chapter] title,

        A. 7455                             8
     1  unless  the  agency  has followed the procedures for deviation from such
     2  policy specified in paragraph (b) of such subdivision.  Such  assistance
     3  shall  also  be  consistent  with environmental protection, such as open
     4  space protection, that will promote new development patterns in order to
     5  take  advantage  of resources and opportunities, such as existing public
     6  sewer and water infrastructure, without compromising the needs of future
     7  generations; and labor protection, including  all  federal,  state,  and
     8  local  labor  laws, rules, or regulations. The agency shall not grant or
     9  appropriate assistance to any entity that has  committed  violations  of
    10  any federal, state, or local laws.
    11    2.  The agency shall prepare (where the applicant does not prepare the
    12  economic impact statement), or cause  to  be  prepared  by  contract  or
    13  otherwise,  an  economic impact statement on any action that it proposes
    14  or approves which may have a significant effect on  the  affected  local
    15  economy and local community.  The agency shall use all practicable means
    16  to  realize  the policies and goals set forth in this article, and shall
    17  act and choose alternatives which, consistent with social, economic, and
    18  other essential considerations, to the maximum extent practicable, mini-
    19  mize or avoid adverse economic effects, including  effects  revealed  in
    20  the  economic impact statement process. Such a statement shall include a
    21  detailed statement setting forth the following:
    22    (a) a description of the proposed action and its economic  and  social
    23  setting;
    24    (b)  the  economic and social impact of the proposed action, including
    25  short-term and long-term effects, especially to the affected community;
    26    (c) any adverse economic effects which cannot be  avoided  should  the
    27  proposal be implemented;
    28    (d) alternatives to the proposed action;
    29    (e)   any   irreversible  and  irretrievable  commitments  and  social
    30  resources which would be involved in the proposed action, should  it  be
    31  implemented;
    32    (f)  mitigation  measures proposed to minimize the economic, social or
    33  other essential impacts; and
    34    (g) the growth-inducing aspects of the proposed action, where applica-
    35  ble and significant.
    36    Such a statement shall  also  include  copies  or  a  summary  of  the
    37  substantive  comments received by the agency pursuant to subdivision six
    38  of this section, and the agency response to such comments.  The  purpose
    39  of an economic impact statement is to provide detailed information about
    40  the  effect  which  a  proposed action is likely to have on the economy,
    41  employment conditions, and social characteristics  of  a  community,  to
    42  list  ways in which any adverse effects of such an action might be mini-
    43  mized, and to suggest alternatives to such an action so as to  form  the
    44  basis  for  a decision as to whether or not to undertake or approve such
    45  action.  Such statement shall be clearly written  in  a  concise  manner
    46  capable  of being read and understood by the public, shall deal with the
    47  specific significant economic impacts which  can  be  reasonably  antic-
    48  ipated, and shall not contain more detail than is appropriate, consider-
    49  ing the nature and magnitude of the proposed action and the significance
    50  of its potential impacts.
    51    3. The agency may require an applicant to submit an economic report to
    52  assist  the  agency  in carrying out its responsibilities, including the
    53  initial determination and, (where the applicant  does  not  prepare  the
    54  economic impact statement), the preparation of an economic impact state-
    55  ment  under  this article. The agency may request such other information
    56  from an applicant necessary  for  the  review  of  economic  and  social

        A. 7455                             9
     1  impacts.  Notwithstanding any use of outside resources or work, agencies
     2  shall make their own independent judgment of the  scope,  contents,  and
     3  adequacy of an economic impact statement.
     4    4.  (a)  As  early as possible in the formulation of a proposal for an
     5  action, the agency shall make an initial determination as to whether  or
     6  not  an economic impact statement need be prepared for the action.  With
     7  respect to actions involving the issuance to an applicant of a permit or
     8  other entitlement, the agency shall notify the applicant in  writing  of
     9  its  initial determination, specifying therein the basis for such deter-
    10  mination.  Notice of the initial determination, along  with  appropriate
    11  supporting findings on agency actions, shall be kept on file in the main
    12  office  of  the  agency for public inspection.  If the agency determines
    13  that such statement is required, the agency or  the  applicant,  at  the
    14  applicant's  option,  shall  prepare  or  cause  to  be prepared a draft
    15  economic impact statement.   If the  applicant  does  not  exercise  the
    16  option  to prepare such statement, the agency shall prepare it, cause it
    17  to be prepared, or terminate its review of  the  proposed  action.  Such
    18  statement shall describe the proposed action and reasonable alternatives
    19  to  the  action,  and  briefly discuss, on the basis of information then
    20  available, the remaining items required to be submitted  by  subdivision
    21  two  of  this  section.  The purpose of a draft economic statement is to
    22  relate economic and social considerations to the inception of the  plan-
    23  ning process, to inform the public and other public agencies as early as
    24  possible about proposed actions that may significantly affect the quali-
    25  ty  of the economic and social conditions, and to solicit comments which
    26  will assist the agency in the decision making process in determining the
    27  economic and social consequences  of  the  proposed  action.  The  draft
    28  statement  shall resemble in form and content the economic impact state-
    29  ment to be prepared after comments have  been  received  and  considered
    30  pursuant  to  subdivision  two of this section; however, that the length
    31  and detail of the draft economic statement will necessarily reflect  the
    32  preliminary  nature  of  the proposal and the early stage at which it is
    33  prepared;
    34    (b) The draft statement shall be filed with the appropriate  governing
    35  body of each municipality for whose benefit such agency is established.
    36    5.  (a)  After  the  filing  of a draft economic impact statement, the
    37  agency shall determine whether or not to conduct a public hearing on the
    38  economic impact of the proposed action. Such  public  hearing  shall  be
    39  held  in  a  city,  town, or village where the project is proposed to be
    40  located.  The agency must give at least thirty days' published notice of
    41  such public hearing and shall, at the same time, provide notice of  such
    42  hearing to the chief executive officer of each affected tax jurisdiction
    43  within  which the project is proposed to be located. The notice of hear-
    44  ing must state the time and place of the  hearing,  contain  a  general,
    45  functional description of the project, describe the prospective location
    46  of  the project, identify the initial owner, operator, or manager of the
    47  project, generally describe the financial assistance contemplated by the
    48  agency with respect to the project, and provide an opportunity  for  the
    49  public  to review the project application, which shall include an analy-
    50  sis of the costs and benefits of the proposed  project.  The  notice  of
    51  hearing  must  be published in the state register and the website of the
    52  agency.
    53    (b) If the agency determines to hold such a hearing, it shall commence
    54  the hearing within sixty days of the filing  and,  unless  the  proposed
    55  action  is  withdrawn  from  consideration,  shall  prepare the economic
    56  impact statement within forty-five days after the close of the  hearing,

        A. 7455                            10
     1  except  as  otherwise  provided.  The  need  for such a hearing shall be
     2  determined in accordance with procedures adopted by the agency  pursuant
     3  to  section  eight  hundred  fifty-eight of this title. If no hearing is
     4  held,  the  agency  shall prepare and make available the economic impact
     5  statement within sixty days after the filing of  the  draft,  except  as
     6  otherwise provided.
     7    (c)  Notwithstanding  the  specified  time periods established by this
     8  article, an agency shall vary the times so established herein for prepa-
     9  ration, review and public hearings to coordinate the economic and social
    10  review process with other procedures relating to review and approval  of
    11  an  action.  An  application or authorization for an action upon which a
    12  draft economic impact statement is determined to be required  shall  not
    13  be  complete  until  such draft statement has been filed and accepted by
    14  the agency as satisfactory with respect to scope, content, and  adequacy
    15  for  purposes of subdivision four of this section.  Commencing upon such
    16  acceptance, the economic impact statement process shall run concurrently
    17  with other procedures relating to the review and approval of the action,
    18  so long as reasonable time is  provided  for  preparation,  review,  and
    19  public hearings with respect to the draft economic impact statement.
    20    6.  To  the  extent  possible,  the economic impact statement prepared
    21  pursuant to subdivision two of this section, together with the  comments
    22  of  public  agencies  and members of the public, shall be filed with the
    23  governing body of each municipality for whose  benefit  such  agency  is
    24  established  and  made  available  to  the public prior to acting on the
    25  proposal which is the subject of the economic impact statement.
    26    7. An agency may charge a fee to an applicant  to  recover  the  costs
    27  incurred  in  preparing  or  causing to be prepared or reviewing a draft
    28  economic impact statement or an economic impact statement on the  action
    29  which the applicant requests from the agency; provided, however, that an
    30  applicant may not be charged a separate fee for both the preparation and
    31  review  of  such statements. The technical services of the agency may be
    32  made available on a fee basis reflecting the costs thereof to a request-
    33  ing agency, which fee or fees may appropriately be charged by the agency
    34  to the applicant under rules and regulations to be issued by the  agency
    35  for such purpose under section eight hundred fifty-eight of this title.
    36    8.  When an agency decides to carry out or approve an action which has
    37  been the subject of an economic  impact  statement,  it  shall  make  an
    38  explicit finding that the requirements of this section have been met and
    39  that,  consistent  with  social, economic, and other essential consider-
    40  ations, to the maximum extent practicable, adverse economic, social, and
    41  community effects revealed in the economic impact statement process will
    42  be minimized or avoided.
    43    9. The agency [must] shall hold a public hearing with respect  to  the
    44  project  and the proposed financial assistance being contemplated by the
    45  agency after the completion of  the  final  economic  impact  statement.
    46  [Said]  Such  public  hearing  shall be held in a city, town, or village
    47  where the project [proposes] is proposed to [locate]  be  located.    At
    48  [said] such public hearing, interested parties shall be provided reason-
    49  able  opportunity,  both  orally  and in writing, to present their views
    50  with respect to the project and the final economic impact  statement.  A
    51  public  hearing  may only be convened if two-thirds of the board members
    52  are present. If not, such public hearing shall not be convened and shall
    53  be rescheduled, subject to the same quorum requirements.
    54    [3.] 10. The agency must give at least ten days  published  notice  of
    55  [said]  such  public hearing and shall, at the same time, provide notice
    56  of such hearing to the chief executive  officer  of  each  affected  tax

        A. 7455                            11
     1  jurisdiction  within which the project is located. The notice of hearing
     2  must state the time and place of the hearing, contain a  general,  func-
     3  tional  description of the project, describe the prospective location of
     4  the  project,  identify  the  initial owner, operator, or manager of the
     5  project, and generally describe the financial assistance contemplated by
     6  the agency with respect to the project.  The notice of hearing  must  be
     7  published  in  the  state  register  and the website of the agency. Such
     8  assistance shall also be consistent with environmental protection,  such
     9  as  open space protection, that will promote new development patterns in
    10  order to take advantage of resources and opportunities, such as existing
    11  public sewer and water infrastructure, without compromising the needs of
    12  future generations; and labor protection, including all federal,  state,
    13  and  local  labor laws, rules or regulations. The agency shall not grant
    14  or appropriate assistance to any entity that has committed violations of
    15  any federal, state, or local laws.
    16    [4.] 11. Each agency shall develop a standard application form,  which
    17  shall  be used by the agency to accept requests for financial assistance
    18  from all individuals, firms, companies, developers or other entities  or
    19  organizations. The standard application form shall be submitted by or on
    20  behalf of the applicant, and subscribed and affirmed under the penalties
    21  of  perjury by the applicant, or on behalf of the applicant by the chief
    22  executive officer or such other individual that is  duly  authorized  to
    23  bind the applicant, as true, accurate and complete to the best of his or
    24  her  knowledge.  The standard application form shall include the follow-
    25  ing, and may include such other supplemental information  as  determined
    26  to  be  necessary  and  appropriate  by the agency, including supporting
    27  documents and information provided by or on behalf of the applicant:
    28    (a) the name and address of the project applicant;
    29    (b) a description of the proposed project for which financial  assist-
    30  ance  is requested, including the type of project, proposed location and
    31  purpose of the project;
    32    (c) the amount and  type  of  financial  assistance  being  requested,
    33  including the estimated value of each type of tax exemption sought to be
    34  claimed by reason of agency involvement in the project;
    35    (d)  a statement that there is a likelihood that the project would not
    36  be undertaken but for the financial assistance provided  by  the  agency
    37  or,  if  the  project  could  be undertaken without financial assistance
    38  provided by the agency, a statement indicating why the project should be
    39  undertaken by the agency;
    40    (e) an estimate of capital costs of the project, including  all  costs
    41  of  real property and equipment acquisition and building construction or
    42  reconstruction, financed from private sector sources, an estimate of the
    43  percentage of project costs financed from public sector sources, and  an
    44  estimate  of  both  the  amount  to be invested by the applicant and the
    45  amount to be borrowed to finance the project.
    46    (f) the projected number of full time equivalent jobs  that  would  be
    47  retained  and that would be created if the request for financial assist-
    48  ance is granted, the projected timeframe for the creation of  new  jobs,
    49  the  estimated  salary and fringe benefit averages or ranges for catego-
    50  ries of the jobs that would be retained or created if  the  request  for
    51  financial  assistance is granted, and an estimate of the number of resi-
    52  dents of the economic development  region  as  established  pursuant  to
    53  section  two hundred thirty of the economic development law or the labor
    54  market area as defined by the agency, in which the  project  is  located
    55  that  would  fill such jobs. The labor market area defined by the agency

        A. 7455                            12
     1  for this purpose may include no more than six contiguous counties in the
     2  state, including the county in which the project is to be located;
     3    (g)  a  statement to the effect that the provisions of subdivision one
     4  of section eight hundred sixty-two of this [chapter] title will  not  be
     5  violated if financial assistance is provided for the proposed project;
     6    (h)  a statement that the owner, occupant or operator receiving finan-
     7  cial assistance is in  substantial  compliance  with  applicable  local,
     8  state  and  federal tax, worker protection and environmental laws, rules
     9  and regulations; and
    10    (i) a statement acknowledging that the  submission  of  any  knowingly
    11  false  or  knowingly  misleading  information  may lead to the immediate
    12  termination of any financial assistance  and  the  reimbursement  of  an
    13  amount  equal  to all or part of any tax exemptions claimed by reason of
    14  agency involvement in the project.
    15    [5.] 12. Each agency shall develop, and adopt by  resolution,  uniform
    16  criteria  for the evaluation and selection for each category of projects
    17  for which financial assistance will  be  provided.  At  a  minimum,  the
    18  criteria  shall require that, for each project, the following must occur
    19  prior to the approval of the provision of financial assistance:
    20    (a) an assessment by the agency of all material  information  included
    21  in  connection  with the application for financial assistance, as neces-
    22  sary to afford a reasonable basis for the  decision  by  the  agency  to
    23  provide financial assistance for the project;
    24    (b)  a written cost-benefit analysis by the agency that identifies the
    25  extent to which a project  will  create  or  retain  permanent,  private
    26  sector  jobs;  the estimated value of any tax exemptions to be provided;
    27  the amount of private sector investment generated or likely to be gener-
    28  ated by the  proposed  project;  the  likelihood  of  accomplishing  the
    29  proposed  project  in  a  timely  fashion;  and  the extent to which the
    30  proposed project will provide additional sources of revenue for  munici-
    31  palities  and school districts; and any other public benefits that might
    32  occur as a result of the project;
    33    (c) a statement by the applicant that the project, as of the  date  of
    34  the  application,  is  in  substantial compliance with all provisions of
    35  this article including, but not  limited  to,  the  provisions  of  this
    36  section  and  subdivision one of section eight hundred sixty-two of this
    37  [chapter] title; and
    38    (d) if the project involves the removal or abandonment of  a  facility
    39  or plant within the state, notification by the agency to the chief exec-
    40  utive officer or officers of the municipality or municipalities in which
    41  the facility or plant was located.
    42    [6.]  13. Each agency shall develop a uniform agency project agreement
    43  that sets forth terms and conditions under  which  financial  assistance
    44  shall be provided. The uniform agency project agreement shall be used by
    45  the  agency and no financial assistance shall be provided in the absence
    46  of the execution of such an agreement. The uniform agency project agree-
    47  ment shall, at a minimum:
    48    (a) describe the project and the financial assistance,  including  the
    49  amount and type, to be provided, and the agency purpose to be achieved;
    50    (b)  require each project owner, occupant or operator receiving finan-
    51  cial benefits to provide annually a certified statement  and  documenta-
    52  tion:    (i)  enumerating the full time equivalent jobs retained and the
    53  full time equivalent jobs created as a result of the  financial  assist-
    54  ance,  by  category, including full time equivalent independent contrac-
    55  tors or employees of independent contractors that work  at  the  project
    56  location,  and  (ii) indicating that the salary and fringe benefit aver-

        A. 7455                            13
     1  ages or ranges for categories of jobs retained and jobs created that was
     2  provided in the application is still accurate and if  it  is  not  still
     3  accurate, providing a revised list of salary and fringe benefit averages
     4  or ranges for categories of jobs retained and jobs created.
     5    (c)  indicate the dates when PILOT payments are to be made and provide
     6  an estimate of the amounts for each affected  tax  jurisdiction  of  any
     7  payments  in lieu of taxes that are included as part of the transaction,
     8  or formula or formulas by which those amounts may be calculated. In lieu
     9  of providing such information, a copy of an executed payment in lieu  of
    10  tax  agreement that contains the same information may be attached to the
    11  uniform agency project agreement;
    12    [(e)] (d) provide for the suspension or  discontinuance  of  financial
    13  assistance, or for the modification of any payment in lieu of tax agree-
    14  ment  to  require increased payments, in accordance with policies devel-
    15  oped by the agency pursuant to section  eight  hundred  seventy-four  of
    16  this title;
    17    [(f)]  (e)  provide  for  the return of all or a part of the financial
    18  assistance provided for the project, including all or part of the amount
    19  of any tax exemptions, which shall be redistributed to  the  appropriate
    20  affected  tax jurisdiction, as provided for in policies developed by the
    21  agency pursuant to section eight hundred  seventy-four  of  this  title,
    22  unless agreed to otherwise by any local taxing jurisdiction or jurisdic-
    23  tions; and
    24    [(g)]  (f)  provide  that  the  owner,  occupant or operator receiving
    25  financial assistance shall certify, under penalty of perjury, that it is
    26  in substantial compliance with all local, state and federal tax,  worker
    27  protection and environmental laws, rules and regulations.
    28    §  8.  Section  860  of the general municipal law, as added by chapter
    29  1030 of the laws of 1969, is amended to read as follows:
    30    § 860. Moneys of the agency. The agency shall have power  to  contract
    31  with  the  holders  of  any  of  its  bonds  or notes as to the custody,
    32  collection, securing, investment and payment of any moneys of the agency
    33  or any moneys held in trust or otherwise for the  payment  of  bonds  or
    34  notes  or  in any way to secure bonds or notes and to carry out any such
    35  contract. Moneys held in trust or otherwise for the payment of bonds  or
    36  notes or in any way to secure bonds or notes and deposits of such moneys
    37  may be secured in the same manner as moneys of the agency, and all banks
    38  and trust companies are authorized to give such security for such depos-
    39  its.    Any  lease  payments,  revenues, or other earnings of the agency
    40  shall be paid to the local governing body of the municipality for  whose
    41  benefit such agency is established.
    42    §  9.  Section 882 of the general municipal law, as amended by chapter
    43  373 of the laws of 2012, is amended and a new section 882-a is added  to
    44  read as follows:
    45    §  882.  Termination of the agency. Whenever all of the bonds or notes
    46  issued by the agency shall have been  redeemed  or  cancelled,  and  all
    47  straight-lease transactions have been terminated, the agency shall cease
    48  to  exist  and  all rights, titles, and interest and all obligations and
    49  liabilities thereof vested in or possessed by the agency shall thereupon
    50  vest in and be possessed by the municipality.  After October first,  two
    51  thousand  twenty-one, non-county industrial development agencies created
    52  under title two of this article shall not be able to issue  any  further
    53  bonds or notes.
    54    §  882-a.  Prohibition  of  local industrial development agencies.  No
    55  further industrial development agencies may be created unless they are a
    56  county-wide industrial development agency.

        A. 7455                            14
     1    § 10. The general municipal law is amended by adding two new  sections
     2  885 and 885-a to read as follows:
     3    §  885.  Prevailing wage.  Whenever a recipient of industrial develop-
     4  ment agency funds, financial assistance, or other  benefit  enters  into
     5  any  contract, subcontract, lease, grant, bond, covenant or other agree-
     6  ment for or in connection  with  any  construction,  demolition,  recon-
     7  struction,  excavation,  rehabilitation, repair, renovation, alteration,
     8  or improvement project, such project shall be  deemed  to  be  a  public
     9  works  project  for  the purposes of article eight of the labor law, and
    10  all of the provisions of article eight of the labor law shall be  appli-
    11  cable  to  all the work involved in the construction, demolition, recon-
    12  struction, excavation, rehabilitation, repair,  renovation,  alteration,
    13  or  improvement  of  such  project.  Funds, financial assistance, or any
    14  other benefits provided pursuant to this article shall not  be  utilized
    15  for  or in connection with the construction, demolition, reconstruction,
    16  excavation, rehabilitation, repair, renovation, alteration, or  improve-
    17  ment  of  any  project  to  which the provisions of article eight of the
    18  labor law are not applicable.
    19    § 885-a.  Recapture. If a recipient entity of agency  assistance  does
    20  not  abide by any provision of this article or requirement made applica-
    21  ble pursuant to the authority of this article, it shall pay back to  the
    22  agency  that  fraction  of  developmental assistance that accrued to its
    23  benefit for the calendar year in which the benefit occurred, plus inter-
    24  est at a rate determined by the granting agency. For one-time  forms  of
    25  assistance  such  as grants or land price discounts, a defaulting entity
    26  shall pay back to the granting agency one-fifth of the value of  assist-
    27  ance.  Remittance  of  the  payback  by a recipient entity to a granting
    28  agency shall take place within sixty calendar days of  the  delivery  of
    29  the default notice to the recipient entity.
    30    §  11.  This  act shall take effect on the sixtieth day after it shall
    31  have become a law; provided, however, that  the  provisions  of  section
    32  seven of this act shall take effect immediately.
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