Bill Text: NY A09144 | 2021-2022 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Establishes a single industrial development agency in each region of the state.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-03-07 - print number 9144a [A09144 Detail]
Download: New_York-2021-A09144-Introduced.html
Bill Title: Establishes a single industrial development agency in each region of the state.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-03-07 - print number 9144a [A09144 Detail]
Download: New_York-2021-A09144-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9144 IN ASSEMBLY January 31, 2022 ___________ Introduced by M. of A. WALLACE -- read once and referred to the Commit- tee on Local Governments AN ACT to amend the general municipal law, in relation to establishing regional industrial development agencies; and to repeal certain provisions of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 856 of the general municipal law, as added by chap- 2 ter 1030 of the laws of 1969, paragraph (c) of subdivision 1 as added by 3 chapter 692 of the laws of 1989 and subdivision 2 as amended by chapter 4 356 of the laws of 1993, is amended to read as follows: 5 § 856. [Organization] Establishment and organization of regional 6 industrial development agencies. 1. (a) [Upon the establishment of an7industrial development agency by special act of the legislature, the8governing body of the municipality for whose benefit such agency is9established shall file within six months after the effective date of the10special act of the legislature establishing such agency or before the11first day of July, nineteen hundred sixty-nine, whichever date shall be12later, in the office of the secretary of state, a certificate setting13forth: (1) the date of passage of the special act establishing the agen-14cy; (2) the name of the agency; (3) the names of the members and their15terms of office, specifying which member is the chairman; and (4) facts16establishing the need for the establishment of an agency in such munici-17pality.18(b) Every such agency shall be perpetual in duration, except that if19(1) such certificate is not filed with the secretary of state within six20months after the effective date of the special act of the legislature21establishing such agency or before the first day of July, nineteen22hundred sixty-nine, whichever date shall be later, or if (2) at the23expiration of ten years subsequent to the effective date of the special24act, there shall be outstanding no bonds or other obligations thereto-25fore issued by such agency or by the municipality for or in behalf of26the agency, then the corporate existence of such agency shall thereupon27terminate and it shall thereupon be deemed to be and shall be dissolved.EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13793-01-1A. 9144 2 1(c) On or before March first of each year, the secretary of state2shall prepare a list of agencies which failed to file a certificate in3accordance with provisions of paragraph (a) of this subdivision within4the preceding calendar year and transmit a copy of such list to the5state comptroller and the commissioner of the department of economic6development. On or before March first of each year the commissioner of7the department of economic development shall prepare a list of agencies8which have dissolved pursuant to paragraph (b) of this subdivision or9have ceased to exist pursuant to section eight hundred eighty-two of10this chapter and shall transmit a copy of such list to the state comp-11troller.] There is hereby established ten regional industrial develop- 12 ment agencies, one for each of the following regions of the state: 13 (i) Long Island (which consists of Suffolk and Nassau counties); 14 (ii) the city of New York (which consists of Bronx, New York, Queens, 15 Brooklyn, and Richmond counties); 16 (iii) the Mid-Hudson region (which consists of Sullivan, Ulster, 17 Dutchess, Orange, Putnam, Westchester, and Rockland counties); 18 (iv) the Southern tier (which consists of Steuben, Schuyler, Tompkins, 19 Chemung, Tioga, Chenango, Broome, and Delaware counties); 20 (v) the Capital region (which consists of Warren, Washington, Sarato- 21 ga, Schenectady, Rensselaer, Albany, Columbia, and Greene counties); 22 (vi) the Mohawk valley (which consists of Oneida, Herkimer, Fulton, 23 Montgomery, Otsego, and Schoharie counties); 24 (vii) the North country (which consists of Clinton, Franklin, St. 25 Lawrence, Jefferson, Lewis, Hamilton, and Essex counties); 26 (viii) the Central region (which consists of Oswego, Cayuga, Onondaga, 27 Madison, and Cortland counties); 28 (ix) the Finger Lakes region (which consists of Orleans, Monroe, 29 Wayne, Genesee, Wyoming, Livingston, Ontario, Seneca, and Yates coun- 30 ties); and 31 (x) the Western region (which consists of Niagara, Erie, Chautauqua, 32 Cattaraugus, and Allegany counties). 33 (b) Any municipal industrial development agency established under the 34 former title two of this article shall consolidate into the regional 35 entity where such municipal industrial development agency was located. 36 2. An agency shall be a corporate governmental agency, constituting a 37 public benefit corporation. Except as otherwise provided by special act 38 of the legislature, an agency shall consist of not less than [three nor39more than] seven members who shall be appointed by the governing body of 40 each municipality in a county under the jurisdiction of the agency and 41 who shall serve at the pleasure of the appointing authority. Such 42 members may include representatives of local government, school boards, 43 organized labor and business. A member shall continue to hold office 44 until his or her successor is appointed and has qualified. The [govern-45ing body of each municipality] appointed members shall designate the 46 first chairman and file with the secretary of state a certificate of 47 appointment or reappointment of any member. Such members shall receive 48 no compensation for their services but shall be entitled to the neces- 49 sary expenses, including traveling expenses, incurred in the discharge 50 of their duties. 51 3. A majority of the members of an agency shall constitute a quorum. 52 4. Any one or more of the members of an agency may be an official or 53 an employee of [the] a municipality in a county under the jurisdiction 54 of the agency. In the event that an official or an employee of the muni- 55 cipality shall be appointed as a member of the agency, acceptance or 56 retention of such appointment shall not be deemed a forfeiture of his orA. 9144 3 1 her municipal office or employment, or incompatible therewith or affect 2 his or her tenure or compensation in any way. [The term of office of a3member of an agency who is an official or an employee of the munici-4pality when appointed as a member thereof by special act of the legisla-5ture creating the industrial development agency shall terminate at the6expiration of the term of his municipal office.] 7 § 2. Subdivisions 1, 4 and 11 of section 854 of the general municipal 8 law, subdivision 1 as added by chapter 1030 of the laws of 1969, subdi- 9 vision 4 as amended by section 5 of part X of chapter 59 of the laws of 10 2021 and subdivision 11 as added by chapter 803 of the laws of 1980, are 11 amended to read as follows: 12 (1) "Agency" or "IDA"--shall mean [an Industrial Development Agency13created pursuant to this act] the regional industrial development agency 14 established in each region of the state, pursuant to subdivision one of 15 section eight hundred fifty-six of this title. 16 (4) "Project" - shall mean any land, any building or other improve- 17 ment, and all real and personal properties located within the state of 18 New York and within or outside or partially within and partially outside 19 the [municipality] region for whose benefit the agency was created, 20 including, but not limited to, machinery, equipment and other facilities 21 deemed necessary or desirable in connection therewith, or incidental 22 thereto, whether or not now in existence or under construction, which 23 shall be suitable for manufacturing, warehousing, research, commercial, 24 renewable energy or industrial purposes or other economically sound 25 purposes identified and called for to implement a state designated urban 26 cultural park management plan as provided in title G of the parks, 27 recreation and historic preservation law and which may include or mean 28 an industrial pollution control facility, a recreation facility, educa- 29 tional or cultural facility, a horse racing facility, a railroad facili- 30 ty, a renewable energy project or an automobile racing facility, 31 provided, however, no agency shall use its funds or provide financial 32 assistance in respect of any project wholly or partially outside the 33 [municipality] region for whose benefit the agency was created without 34 the prior consent thereto by the governing body or bodies of all the 35 [other] municipalities in which a part or parts of the project is and 36 the corresponding agency for such region, or is to be, located, and such 37 portion of the project located outside such [municipality] region for 38 whose benefit the agency was created shall be contiguous with the 39 portion of the project inside such [municipality] region. 40 (11) "Railroad facility"--shall mean, but shall not be limited to, 41 railroad rights-of-way, beds, bridges, viaducts, tracks, switches and 42 rolling stock and any other attendant structure, equipment, facility or 43 property necessary or appropriate to railroading conducted in conjunc- 44 tion with industrial, [commerical] commercial, manufacturing, recre- 45 ational or warehousing operations; provided, however, that (i) no agency 46 shall itself operate a railroad facility for freight or passenger 47 service, but may lease or otherwise make such facility available to an 48 operator, subject to an agreement for the maintenance and operation of 49 such facility for freight or passenger service, provided that passenger 50 service does not constitute the primary purpose of the railroad facili- 51 ty; (ii) prior to undertaking any project involving acquisition, 52 construction, reconstruction, improvement, maintenance, equipping or 53 furnishing of a railroad facility, an agency shall submit its plans for 54 the proposed project to the commissioner of transportation; the commis- 55 sioner shall, within sixty days of his or her receipt of the proposal, 56 submit an analysis of the financial and operational feasibility of theA. 9144 4 1 proposed project, along with any recommendations for modification for 2 improving the project's viability, to the agency, the governor, the 3 commissioner of commerce, the temporary president of the senate, the 4 speaker of the assembly and the governing body of the municipality in 5 which the [agency] proposed project is located; and (iii) no agency 6 shall enter into any contract for the acquisition, construction, recon- 7 struction, improvement, maintenance, equipping or furnishing of a rail- 8 road facility until fifteen days after the submission of the analysis 9 and recommendations of the commissioner of transportation, or seventy- 10 five days after submission of the agency's plan to the commissioner, 11 whichever is earlier. 12 § 3. The opening paragraph and subdivisions 6, 7 and 8 of section 858 13 of the general municipal law, the opening paragraph as amended by 14 section 6 of part X of chapter 59 of the laws of 2021, subdivision 6 as 15 added by chapter 1030 of the laws of 1969, subdivision 7 as amended by 16 chapter 559 of the laws of 2021 and subdivision 8 as amended by chapter 17 356 of the laws of 1993, are amended to read as follows: 18 The purposes of the agency shall be to promote, develop, encourage and 19 assist in the acquiring, constructing, reconstructing, improving, main- 20 taining, equipping and furnishing industrial, manufacturing, warehous- 21 ing, commercial, research, renewable energy and recreation facilities 22 including industrial pollution control facilities, educational or 23 cultural facilities, railroad facilities, horse racing facilities, auto- 24 mobile racing facilities, renewable energy projects and continuing care 25 retirement communities, [provided, however, that, of agencies governed26by this article, only agencies created for the benefit of a county and27the agency created for the benefit of the city of New York shall be28authorized to provide financial assistance in any respect to a continu-29ing care retirement community,] and thereby advance the job opportu- 30 nities, health, general prosperity and economic welfare of the people of 31 the state of New York and to improve their recreation opportunities, 32 prosperity and standard of living; and to carry out the aforesaid 33 purposes, each agency shall have the following powers: 34 (6) With the consent of [the] a municipality under the jurisdiction of 35 the agency, to use agents, employees and facilities of the municipality, 36 paying the municipality its agreed proportion of the compensation or 37 costs; 38 (7) To appoint officers, agents and employees, to prescribe their 39 qualifications and to fix their compensation and to pay the same out of 40 funds of the agency, provided, however, that an elected officer of [the] 41 a municipality under the jurisdiction of the agency may not serve as a 42 compensated officer, agent or employee of the agency; 43 (8) (a) To appoint an attorney, who may be the counsel of [the] a 44 municipality under the jurisdiction of the agency, and to fix the attor- 45 ney's compensation for services which shall be payable to the attorney, 46 and to retain and employ private consultants for professional and tech- 47 nical assistance and advice; 48 (b) An attorney acting as bond counsel for a project must file with 49 the agency a written statement in which the attorney identifies each 50 party to the transaction which such attorney represents. If bond counsel 51 provides any legal services to parties other than the agency the written 52 statement must describe the nature of legal services provided by such 53 bond counsel to all parties to the transaction, including the nature of 54 the services provided to the agency. 55 § 4. Paragraphs (b) and (e) of subdivision 1 and subdivisions 2 and 3 56 of section 859 of the general municipal law, paragraph (b), the openingA. 9144 5 1 paragraph of paragraph (e) and subparagraph (v) of paragraph (e) of 2 subdivision 1 as amended by chapter 357 of the laws of 1993, paragraph 3 (e) of subdivision 1 and subdivision 3 as added and subdivision 2 as 4 amended by chapter 356 of the laws of 1993, are amended to read as 5 follows: 6 (b) Within ninety days following the close of its fiscal year, each 7 agency [or authority] shall prepare a financial statement for that 8 fiscal year in such form as may be prescribed by the state comptroller. 9 Such statement shall be audited within such [ninety day] ninety-day 10 period by an independent certified public accountant in accordance with 11 government accounting standards established by the United States general 12 accounting office. The audited financial statement shall include supple- 13 mental schedules listing all straight-lease transactions and bonds and 14 notes issued, outstanding or retired during the applicable accounting 15 period whether or not such bonds, notes or transactions are considered 16 obligations of the agency. For each issue of bonds or notes such sched- 17 ules shall provide the name of each project financed with proceeds of 18 each issue, and whether the project occupant is a not-for-profit corpo- 19 ration, the name and address of each owner of each project, the esti- 20 mated amount of tax exemptions authorized for each project, the purpose 21 for which each bond or note was issued, date of issue, interest rate at 22 issuance and if variable the range of interest rates applicable, maturi- 23 ty date, federal tax status of each issue, and an estimate of the number 24 of jobs created and retained by each project. For each straight-lease 25 transaction, such schedules shall provide the name of each project, and 26 whether the project occupant is a not-for-profit corporation, the name 27 and address of each owner of each project, the estimated amount of tax 28 exemptions authorized for each project, the purpose for which each tran- 29 saction was made, the method of financial assistance utilized by the 30 project, other than the tax exemptions claimed by the project and an 31 estimate of the number of jobs created and retained by each project. 32 (e) If an agency [or authority] shall fail to file or substantially 33 complete, as determined by the state comptroller, the financial state- 34 ment required by this section, the state comptroller shall provide 35 notice to the agency [or authority]. The notice shall state the follow- 36 ing: 37 (i) that the failure to file a financial statement as required is a 38 violation of this section, or in the case of an insufficient financial 39 statement, the manner in which the financial statement submitted is 40 deficient; 41 (ii) that the agency [or authority] has thirty days to comply with 42 this section or provide an adequate written explanation to the comp- 43 troller of the agency's [or authority's] reasons for the inability to 44 comply; and 45 (iii) that the agency's [or authority's] failure to provide either the 46 required financial statement or an adequate explanation will result in 47 the notification [of the chief executive officer of the municipality for48whose benefit the agency or authority was created] of [the] such agen- 49 cy's noncompliance with this section. Where such agency [or authority] 50 has failed to file the required statement, the comptroller shall addi- 51 tionally notify the agency [or authority] that continued failure to file 52 the required statement may result in loss of the agency's [or authori-53ty's] authority to provide exemptions from state taxes. 54 (iv) If an agency [or authority] after thirty days has failed to file 55 the required statement or the explanation in the manner required by 56 subparagraph (i) of this paragraph, or provides an insufficient explana-A. 9144 6 1 tion, the comptroller shall notify the [chief executive officer of the2municipality for whose benefit the agency or authority was created and3the] agency of [the] such agency's [or authority's] noncompliance with 4 this section. Such notice from the state comptroller shall further 5 delineate in what respect the agency [or authority] has failed to comply 6 with this section. If the agency [or authority] has failed to file the 7 required statement, the notice shall additionally state that continued 8 failure to file the required statement may result in loss of the agen- 9 cy's [or authority's] authority to provide exemptions from state taxes. 10 (v) If, thirty days after notification of the [chief executive officer11of the municipality for whose benefit the agency or authority was12created of the] agency's [or authority's] noncompliance, the agency [or13authority] fails to file the required statement, the comptroller shall 14 notify the [chief executive officer of the municipality for whose bene-15fit that agency or authority was created and the] agency [or authority] 16 that if such report is not provided within sixty days, that the agency 17 [or authority] will no longer be authorized to provide exemptions from 18 state taxes. 19 (vi) If, sixty days after the notification required by subparagraph 20 (v) of this paragraph, the comptroller has not received the required 21 statement, the agency [or authority] shall not offer financial assist- 22 ance which provides exemptions from state taxes until such financial 23 statement is filed and the comptroller shall so notify the agency [or24authority and the chief executive officer of the municipality for whose25benefit the agency was created]. Provided, however, that nothing 26 contained in this paragraph shall be deemed to modify the terms of any 27 existing agreements. 28 2. On or before September first of each year, the commissioner of the 29 department of economic development shall prepare and submit to the 30 governor, speaker of the assembly, majority leader of the senate, and 31 the state comptroller, a report setting forth a summary of the signif- 32 icant trends in operations and financing by the agencies [and authori-33ties]; departures from acceptable practices by agencies [and authori-34ties]; a compilation by type of the bonds and notes outstanding; a 35 compilation of all outstanding straight-lease transactions; an estimate 36 of the total number of jobs created and retained by agency [or authori-37ty] projects; and any other information which in the opinion of the 38 commissioner bears upon the discharge of the statutory functions of 39 agencies [and authorities]. 40 3. On or before April first, nineteen hundred ninety-six, the commis- 41 sioner shall submit to the director of the division of the budget, the 42 temporary president of the senate, the speaker of the assembly, the 43 chairman of the senate finance committee, the chairman of the assembly 44 ways and means committee, the chairman of the senate local government 45 committee, the chairman of the senate committee on commerce, economic 46 development and small business, the chairman of the assembly committee 47 on commerce, industry and economic development, the chairman of the 48 assembly local governments committee and the chairman of the assembly 49 real property taxation committee an evaluation of the activities of 50 industrial development agencies [and authorities] in the state prepared 51 by an entity independent of the department. Such evaluation shall iden- 52 tify the effect of agencies [and authorities] on: (a) job creation and 53 retention in the state, including the types of jobs created and 54 retained; (b) the value of tax exemptions provided by such agencies [and55authorities]; (c) the value of payments received in lieu of taxes 56 received by municipalities and school districts as a result of projectsA. 9144 7 1 sponsored by such entities; (d) a summary of the types of projects that 2 received financial assistance; (e) a summary of the types of financial 3 assistance provided by the agencies [and authorities]; (f) a summary of 4 criteria for evaluation of projects used by agencies [and authorities]; 5 (g) a summary of tax exemption policies of agencies [and authorities]; 6 and (h) such other factors as may be relevant to an assessment of the 7 performance of such agencies [and authorities] in creating and retaining 8 job opportunities for residents of the state. Such evaluation shall also 9 assess the process by which the agencies [and authorities] grant 10 exemptions from state taxes and make recommendations for the most effi- 11 cient and effective procedures for the use of such exemptions. Such 12 evaluation shall further include any recommendations for changes in laws 13 governing the operations of industrial development agencies [and author-14ities] which would enhance the creation and retention of jobs in the 15 state. 16 § 5. Paragraph (c) of subdivision 2 of section 862 of the general 17 municipal law, as added by section 1 of part J of chapter 59 of the laws 18 of 2013, is amended to read as follows: 19 (c) With respect to projects authorized pursuant to paragraph (b) of 20 this subdivision, no project shall be approved unless the agency shall 21 find after the public hearing required by section eight hundred fifty- 22 nine-a of this title that undertaking the project will serve the public 23 purposes of this article by preserving permanent, private sector jobs or 24 increasing the overall number of permanent, private sector jobs in the 25 state. [Where the agency makes such a finding, prior to providing finan-26cial assistance to the project by the agency, the chief executive offi-27cer of the municipality for whose benefit the agency was created shall28confirm the proposed action of the agency.] 29 § 6. Section 868 of the general municipal law, as added by chapter 30 1030 of the laws of 1969, is amended to read as follows: 31 § 868. Agreements of the municipality and state. The municipality 32 where a proposed project is located is authorized to, and the state does 33 hereby, pledge to and agree with the holders of the bonds or notes that 34 neither the municipality nor the state, respectively, will limit or 35 alter the rights, hereby vested in the agency to acquire, construct, 36 reconstruct, improve, maintain, equip and furnish the project or 37 projects, to establish and collect rentals, fees and other charges and 38 to fulfill the terms of any agreements made with the holders of the 39 bonds or notes nor in any way impair the rights and remedies of the 40 bondholders or noteholders until the bonds or notes, together with 41 interest thereon, with interest on any unpaid installments of interest 42 and all costs and expenses in connection with any action or proceeding 43 by or on behalf of the bondholders or noteholders are fully met and 44 discharged. 45 § 7. Section 870 of the general municipal law, as added by chapter 46 1030 of the laws of 1969, is amended to read as follows: 47 § 870. State and municipality not liable on bonds or notes. The bonds 48 or notes and other obligations of the [authority] agency shall not be a 49 debt of the state or of the municipality where a proposed project is 50 located, and neither the state nor the municipality shall be liable 51 thereon, nor shall they be payable out of any funds other than those of 52 the agency. 53 § 8. Subdivision 1 and paragraph (d) of subdivision 3 of section 875 54 of the general municipal law, as added by section 2 of part J of chapter 55 59 of the laws of 2013, are amended to read as follows:A. 9144 8 1 1. For purposes of this section: "state sales and use taxes" means 2 sales and compensating use taxes and fees imposed by article twenty- 3 eight or twenty-eight-A of the tax law but excluding such taxes imposed 4 in a city by section eleven hundred seven or eleven hundred eight of 5 such article twenty-eight. "IDA" means [an] a regional industrial devel- 6 opment agency established in each region of the state by subdivision one 7 of section eight hundred fifty-six of this [article or an industrial8development authority created by the public authorities law] title. 9 "Commissioner" means the commissioner of taxation and finance. 10 (d) An IDA shall prepare an annual compliance report detailing its 11 terms and conditions described in paragraph (a) of this subdivision and 12 its activities and efforts to recover, recapture, receive, or otherwise 13 obtain state sales and use exemptions benefits described in paragraph 14 (b) of this subdivision, together with such other information as the 15 commissioner and the commissioner of economic development may require. 16 The report required by this subdivision shall be filed with the commis- 17 sioner, the director of the division of the budget, the commissioner of 18 economic development, the state comptroller, [the governing body of the19municipality for whose benefit the agency was created,] and may be 20 included with the annual financial statement required by paragraph (b) 21 of subdivision one of section eight hundred fifty-nine of this title. 22 Such report required by this subdivision shall be filed regardless of 23 whether the IDA is required to file such financial statement described 24 by such paragraph (b) of subdivision one of section eight hundred 25 fifty-nine. The failure to file or substantially complete the report 26 required by this subdivision shall be deemed to be the failure to file 27 or substantially complete the statement required by such paragraph (b) 28 of subdivision one of such section eight hundred fifty-nine, and the 29 consequences shall be the same as provided in paragraph (e) of subdivi- 30 sion one of such section eight hundred fifty-nine. 31 § 9. Paragraph e of subdivision 3 of section 859-c of the general 32 municipal law is REPEALED. 33 § 10. Section 861 of the general municipal law is REPEALED. 34 § 11. Section 882 of the general municipal law is REPEALED. 35 § 12. Title 2 of article 18-A of the general municipal law is 36 REPEALED. 37 § 13. This act shall take effect on the one hundred eightieth day 38 after it shall have become a law. Effective immediately, the addition, 39 amendment and/or repeal of any rule or regulation necessary for the 40 implementation of this act on its effective date are authorized to be 41 made and completed on or before such effective date.