Bill Text: NY A10612 | 2023-2024 | General Assembly | Introduced

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Bill Title: Requires the state comptroller, and the NYC comptroller, to prepare an analysis of the return on investment of certain economic development programs and projects.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-06-20 - referred to economic development [A10612 Detail]

Download: New_York-2023-A10612-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10612

                   IN ASSEMBLY

                                      June 20, 2024
                                       ___________

        Introduced by COMMITTEE ON RULES -- (at request of M. of A. Rajkumar) --
          read once and referred to the Committee on Economic Development

        AN ACT to amend the state finance law, the general city law, the general
          municipal law, and the administrative code of the city of New York, in
          relation  to  an  analysis  of  the  return on investment for economic
          development programs

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. This act shall be known and may be cited as the "return on
     2  investment act".
     3    § 2. Section 8 of the state finance law is amended  by  adding  a  new
     4  subdivision 21 to read as follows:
     5    21. (a) Complete an analysis of the return on investment, as such term
     6  is  defined  in section one hundred eighty of the tax law, in the manner
     7  prescribed in this section, for every:  capital  expenditure;  financial
     8  assistance;  credit  against  a  tax  imposed; payment in lieu of taxes;
     9  development plan; local incentive; urban development action area project
    10  as defined in section six hundred ninety-two of  the  general  municipal
    11  law;  redevelopment  plan  pursuant to section nine hundred seventy-f of
    12  the general municipal law; community development project as  defined  in
    13  section nine hundred fifty-seven of the general municipal law; rebate of
    14  sales  taxes  paid;  or  rebate  or discount of charges for energy, to a
    15  private entity by  any  department,  authority,  industrial  development
    16  agency,  development corporation, urban renewal agency, council, commis-
    17  sion, trust, or other instrument of the state for the purpose of econom-
    18  ic development, unless such analysis is otherwise provided for by anoth-
    19  er statute.
    20    (b) For  any  one-time  project  or  program,  the  comptroller  shall
    21  complete  such  analysis no later than two years after the completion of
    22  the project or program, or five years  after  its  execution,  whichever
    23  comes first.
    24    (c)  For  any  recurring  program, the comptroller shall complete such
    25  analysis of the program no later than two years after the effective date
    26  of this section and by January first every five years thereafter.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15808-02-4
        A. 10612                            2

     1    (d) Any entity administering a program or project set forth  in  para-
     2  graph (a) of this subdivision shall furnish any requested information to
     3  the comptroller to complete such analysis.
     4    (e)  To  complete any such analysis, the comptroller may contract with
     5  an economic impact firm or may delegate such duty to any instrumentality
     6  of the state or municipal corporation which administers the  program  or
     7  project.
     8    (f)  For the purpose of this subdivision, "economic development" shall
     9  mean  any  project  or  program  for  the  prosperous  development   and
    10  protection  of the legitimate interest and welfare of New York business,
    11  industry and commerce, within and outside the state; the  expansion  and
    12  development  of markets for New York products; the location and develop-
    13  ment of new business in the state as well as the maintenance and  expan-
    14  sion  of  existing  business;  urban  renewal as defined in section five
    15  hundred two of the general municipal law; creation or expansion of ener-
    16  gy infrastructure; creation or expansion of  transportation  infrastruc-
    17  ture;  promotion of tourism; promotion of the arts, cultural affairs, or
    18  natural heritage; creation or preservation of housing other than routine
    19  maintenance; or decarbonization or weatherization of buildings.
    20    § 3. The general city law is amended by adding a new  article  2-K  to
    21  read as follows:
    22                                 ARTICLE 2-K
    23                         RETURN ON INVESTMENT ANALYSIS
    24  Section 25-ff. Return on investment analysis.
    25    § 25-ff. Return on investment analysis. The comptroller of a city with
    26  a population of one million or more shall, every five years, complete an
    27  analysis  of  return  on  investment,  as defined in section one hundred
    28  eighty of the tax law, of any credit against a tax imposed by such city,
    29  rebate of sales taxes paid, rebate of charges for energy, or discount of
    30  charges for energy, provided for in this chapter, unless  such  analysis
    31  is otherwise provided for in statute.
    32    §  4.  The  general  municipal  law is amended by adding a new section
    33  696-g to read as follows:
    34    § 696-g. Analysis on return  on  investment.  Each  agency  shall,  in
    35  consultation  with  the state comptroller, conduct an analysis of return
    36  on investment, as defined in section one hundred eighty of the tax  law,
    37  of every existing urban development action area project in its jurisdic-
    38  tion  no later than five years after the effective date of this section.
    39  On and after such date the analysis of  any  future  projects  shall  be
    40  conducted by the state comptroller.
    41    § 5. Section 970-f of the general municipal law is amended by adding a
    42  new closing paragraph to read as follows:
    43    Each redevelopment plan shall include an analysis of return on invest-
    44  ment,  as  such term is defined in section one hundred eighty of the tax
    45  law.
    46    § 6. Section 22-823 of the administrative code of the city of New York
    47  is amended by adding a new subdivision j to read as follows:
    48    j. Cost benefit analysis. For each covered  contract  the  city  comp-
    49  troller  shall prepare a cost benefit analysis of such contract no later
    50  than two years after its completion, or five years after its  execution,
    51  whichever comes first.
    52    §  7. This act shall take effect on the first of January next succeed-
    53  ing the date on which it shall have become a law.