Bill Text: NY S01635 | 2021-2022 | General Assembly | Introduced


Bill Title: Relates to the purposes and powers of industrial development agencies and to improving the accountability and transparency of such agencies; makes conforming changes to the general municipal law; extends the bond issuance charge to the debt issued by not-for-profit corporations acting on behalf of the state or its political subdivisions; and relates to the purposes and powers of local development corporations and certain other not-for-profit corporations thereof.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2021-01-14 - REFERRED TO LOCAL GOVERNMENT [S01635 Detail]

Download: New_York-2021-S01635-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          1635

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 14, 2021
                                       ___________

        Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government

        AN ACT to amend the general municipal law  and  the  public  authorities
          law,  in relation to the purposes and powers of industrial development
          agencies and to improve the accountability and  transparency  of  such
          agencies;  to amend the public authorities law, in relation to extend-
          ing the bond issuance charge to  the  debt  issued  by  not-for-profit
          corporations  acting  on behalf of the state or its political subdivi-
          sions; to amend the not-for-profit corporation law, in relation to the
          purposes and powers of  local  development  corporations  and  certain
          other not-for-profit corporations thereof; and to repeal subdivision 3
          of  section 859 of the general municipal law relating to an evaluation
          of the activities of industrial development agencies  and  authorities
          in the state prepared by an entity independent of the department

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

     1    Section 1. Subdivisions 4 and 14 of section 854 of the general munici-
     2  pal law, subdivision 4 as amended by section 6 of part J of  chapter  59
     3  of  the  laws  of 2013 and subdivision 14 as added by chapter 356 of the
     4  laws of 1993, are amended and a new subdivision 21 is added to  read  as
     5  follows:
     6    (4)  "Project"  -  shall mean any land, any building or other improve-
     7  ment, and all real and personal properties located within the  state  of
     8  New York and within or outside or partially within and partially outside
     9  the  municipality  for  whose benefit the agency was created, including,
    10  but not limited to, machinery, equipment  and  other  facilities  deemed
    11  necessary  or  desirable in connection therewith, or incidental thereto,
    12  whether or not now in existence or under construction,  which  shall  be
    13  suitable  for manufacturing, warehousing, research, civic, commercial or
    14  industrial purposes or other economically sound purposes identified  and
    15  called  for  to implement a state designated urban cultural park manage-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02284-01-1

        S. 1635                             2

     1  ment plan as provided in title G of the parks, recreation  and  historic
     2  preservation  law  and which may include or mean an industrial pollution
     3  control facility, a recreation facility, educational or cultural facili-
     4  ty,  a  horse  racing  facility,  a railroad facility, a continuing care
     5  retirement community, or a civic facility, provided, however,  that,  of
     6  agencies governed by this article, only agencies created for the benefit
     7  of  a  county and the agency created for the benefit for the city of New
     8  York shall provide financial assistance in any respect to  a  continuing
     9  care  retirement  community, or an automobile racing facility, provided,
    10  however, no agency shall use its funds or provide  financial  assistance
    11  in  respect  of any project wholly or partially outside the municipality
    12  for whose benefit the agency was created without the prior consent ther-
    13  eto by the governing body or bodies of all the other  municipalities  in
    14  which  a part or parts of the project is, or is to be, located, and such
    15  portion of the project located outside such municipality for whose bene-
    16  fit the agency was created shall be contiguous with the portion  of  the
    17  project  inside  such  municipality.  Provided further, however, that no
    18  agency shall provide financial assistance  for  any  project  where  the
    19  project  applicant  has  any  agreement  to subsequently contract with a
    20  municipality for the lease or purchase of such project or project facil-
    21  ity.
    22    (14) "Financial assistance" - shall mean the proceeds of bonds  issued
    23  by  an  agency, straight-leases, grants, loans, or exemptions from taxa-
    24  tion claimed by a project occupant as  a  result  of  an  agency  taking
    25  title,  possession  or  control  (by lease, license or otherwise) to the
    26  property or equipment of such project occupant or of such project  occu-
    27  pant acting as an agent of an agency.
    28    (21) "Civic facility" shall mean a facility to be owned or occupied by
    29  a  municipal  corporation,  a  district corporation, or a not-for-profit
    30  corporation organized and existing under  the  laws  of  this  state  or
    31  authorized  to  conduct  activities  in  this  state; provided that such
    32  facilities shall  be  limited  to  medical  facilities  including  those
    33  defined  in  article  twenty-eight of the public health law, educational
    34  facilities, recreational facilities for public use, facilities used  for
    35  municipal  government  or  public safety purposes, or housing facilities
    36  primarily designed to be occupied by individuals sixty years of  age  or
    37  older.  Nothing  in this article shall be deemed to waive any applicable
    38  requirement for an operating  facility  certificate,  consent  or  other
    39  approval as provided by law.
    40    §  2.  Subdivision  2  of section 856 of the general municipal law, as
    41  amended by chapter 356 of the laws  of  1993,  is  amended  to  read  as
    42  follows:
    43    2.  An agency shall be a corporate governmental agency, constituting a
    44  public benefit corporation. Except as otherwise provided by special  act
    45  of  the  legislature,  an  agency shall consist of not less than [three]
    46  five nor more than seven members who shall be appointed by the governing
    47  body of each municipality and who shall serve at  the  pleasure  of  the
    48  appointing  authority. Such members may include representatives of local
    49  government, school boards, organized labor and business. A member  shall
    50  continue  to hold office until his successor is appointed and has quali-
    51  fied. The governing body of each municipality shall designate the  first
    52  chairman  and file with the secretary of state a certificate of appoint-
    53  ment or reappointment of any  member.  Such  members  shall  receive  no
    54  compensation  for  their services but shall be entitled to the necessary
    55  expenses, including traveling expenses, incurred  in  the  discharge  of
    56  their duties.

        S. 1635                             3

     1    §  3.  Section  858  of the general municipal law, as added by chapter
     2  1030 of the laws of 1969, the opening paragraph as  amended  by  chapter
     3  478  of the laws of 2011, subdivision 4 as amended by chapter 747 of the
     4  laws of 2005, subdivision 9 as amended by chapter 444  of  the  laws  of
     5  1997,  subdivision  8  as amended and subdivision 15 as added by chapter
     6  356 of the laws of 1993, and subdivisions 16, 17, and 19 as amended  and
     7  subdivision  18  as added by chapter 109 of the laws of 2020, is amended
     8  to read as follows:
     9    § 858. Purposes and powers of the agency.  The purposes of the  agency
    10  shall  be  to  promote,  develop, encourage and assist in the acquiring,
    11  constructing,  reconstructing,  improving,  maintaining,  equipping  and
    12  furnishing  industrial, manufacturing, warehousing, commercial, research
    13  and recreation facilities including industrial pollution control facili-
    14  ties, educational or cultural  facilities,  civic  facilities,  railroad
    15  facilities,  horse  racing  facilities, automobile racing facilities and
    16  continuing care retirement  communities,  provided,  however,  that,  of
    17  agencies governed by this article, only agencies created for the benefit
    18  of  a  county  and the agency created for the benefit of the city of New
    19  York shall be authorized to provide financial assistance in any  respect
    20  to  a  continuing care retirement community, and thereby advance the job
    21  opportunities, health, general prosperity and economic  welfare  of  the
    22  people of the state of New York and to improve their recreation opportu-
    23  nities,  prosperity  and standard of living; and to carry out the afore-
    24  said purposes, each agency shall have the following powers:
    25    (1) To sue and be sued;
    26    (2) To have a seal and alter the same at pleasure;
    27    (3) To acquire, hold and dispose of personal property for  its  corpo-
    28  rate purposes;
    29    (4)  To  acquire  by  purchase,  grant,  lease,  gift, pursuant to the
    30  provisions of the eminent domain procedure law, or otherwise and to use,
    31  real property or rights or easements therein necessary for its corporate
    32  purposes in compliance with the local zoning  and  planning  regulations
    33  and  shall take into consideration regional and local comprehensive land
    34  use plans and state designated heritage area management  plans,  and  to
    35  sell,  convey, mortgage, lease, pledge, exchange or otherwise dispose of
    36  any such property in such manner as the agency shall determine.  In  the
    37  case of railroad facilities, however, the phrase to use real property or
    38  rights  or  easements therein shall not be interpreted to include opera-
    39  tion by the agency of rail service upon  or  in  conjunction  with  such
    40  facilities[.];
    41    (5)  To acquire real property from a municipality as necessary for its
    42  corporate purposes pursuant to section eight  hundred  fifty-eight-c  of
    43  this title;
    44    (6)  To  make by-laws for the management and regulation of its affairs
    45  and, subject to agreements with its bondholders, for the  regulation  of
    46  the use of a project or projects[.];
    47    [(6)] (7) With the consent of the municipality, to use agents, employ-
    48  ees  and  facilities  of  the  municipality, paying the municipality its
    49  agreed proportion of the compensation or costs;
    50    [(7)] (8) To appoint officers,  agents  and  employees,  to  prescribe
    51  their  qualifications  and to fix their compensation and to pay the same
    52  out of funds of the agency;
    53    [(8)] (9) (a) To appoint an attorney, who may be the  counsel  of  the
    54  municipality,  and to fix the attorney's compensation for services which
    55  shall be payable to the attorney,  and  to  retain  and  employ  private
    56  consultants for professional and technical assistance and advice;

        S. 1635                             4

     1    (b)  An  attorney  acting as bond counsel for a project must file with
     2  the agency a written statement in which  the  attorney  identifies  each
     3  party to the transaction which such attorney represents. If bond counsel
     4  provides any legal services to parties other than the agency the written
     5  statement  must  describe  the nature of legal services provided by such
     6  bond counsel to all parties to the transaction, including the nature  of
     7  the services provided to the agency[.];
     8    [(9)]  (10)  To  make contracts and leases, and to execute all instru-
     9  ments necessary or convenient to or with any person,  firm,  partnership
    10  or  corporation,  either  public or private; provided, however, that any
    11  extension of an existing contract, lease or other agreement entered into
    12  by an agency with respect to a project shall be guided by the provisions
    13  of this article;
    14    [(10)] (11) To acquire, construct, reconstruct, lease, improve,  main-
    15  tain, equip or furnish one or more projects;
    16    [(11)] (12) To accept gifts, grants, loans, or contributions from, and
    17  enter  into  contracts or other transactions with, the United States and
    18  the state or any agency of either of them, any municipality, any  public
    19  or  private  corporation  or any other legal entity, and to use any such
    20  gifts, grants, loans or contributions for any of its corporate purposes;
    21    (13) To provide financial assistance in the form of loans to  improve,
    22  maintain  or  equip  one  or more projects consistent with its corporate
    23  purposes;
    24    (14) To provide financial assistance in the form of grants for one  or
    25  more projects consistent with its corporate purposes;
    26    [(12)]  (15) To borrow money and to issue bonds and to provide for the
    27  rights of the holders thereof;
    28    [(13)] (16) To grant options to renew any lease with  respect  to  any
    29  project  or  projects  and  to  grant options to buy any project at such
    30  price as the agency may deem desirable;
    31    [(14)] (17) To designate the depositories of its money  either  within
    32  or without the state;
    33    [(15)]  (18)  To  enter  into agreements requiring payments in lieu of
    34  taxes. Such agreements shall be in writing  and  in  addition  to  other
    35  terms shall contain: the amount due annually to each affected tax juris-
    36  diction  (or  a  formula by which the amount due can be calculated), the
    37  name and address of the person, office or agency to which payment  shall
    38  be  delivered,  the date on which payment shall be made, and the date on
    39  which payment shall be considered delinquent if not paid. Unless  other-
    40  wise  agreed by the affected tax jurisdictions, any such agreement shall
    41  provide that payments in lieu of taxes shall be allocated among affected
    42  tax jurisdictions in proportion to the amount of real property  tax  and
    43  other  taxes  which would have been received by each affected tax juris-
    44  diction had the project not been tax exempt due to  the  status  of  the
    45  agency  involved  in  the project. A copy of any such agreement shall be
    46  delivered to each affected tax jurisdiction within fifteen days of sign-
    47  ing the agreement[. In  the  absence  of  any  such  written  agreement,
    48  payments  in  lieu  of taxes made by an agency shall be allocated in the
    49  same proportions as they had  been  prior  to  January  first,  nineteen
    50  hundred  ninety-three  for  so  long as the agency's activities render a
    51  project non-taxable by affected tax jurisdictions] and published by  the
    52  agency on its website;
    53    [(16)] (19) To establish and re-establish its fiscal year;
    54    [(17)]  (20)  To  provide  loans to small businesses or not-for-profit
    55  corporations as authorized in section eight hundred fifty-nine-c of this
    56  title; and

        S. 1635                             5

     1    [(18)] (21) To provide grants to small businesses  and  not-for-profit
     2  corporations,  as  defined in section eight hundred fifty-nine-c of this
     3  title, for the purpose of acquiring  personal  protective  equipment  or
     4  installing  fixtures  necessary to prevent the spread of novel coronavi-
     5  rus,  COVID-19,  during  the period in which executive order two hundred
     6  two of two thousand twenty, as amended, is in effect.  In  order  to  be
     7  eligible  for  a grant pursuant to this subdivision, a small business or
     8  not-for-profit corporation must meet the requirements of paragraph a  of
     9  subdivision  three  of section eight hundred fifty-nine-c of this title.
    10  No industrial development agency may provide a small  business  or  not-
    11  for-profit  corporation  with more than ten thousand dollars pursuant to
    12  this subdivision; and
    13    [(19)] (22) To [do all things necessary or convenient  to]  carry  out
    14  its  purposes  and  exercise  [the] those powers expressly given in this
    15  title.
    16    § 4. The general municipal law is amended  by  adding  a  new  section
    17  858-c to read as follows:
    18    §  858-c.  Purchase or lease of real property owned by a county, city,
    19  town or village. 1. The local legislative body of a county,  city,  town
    20  or  village may by resolution determine that specifically described real
    21  property owned by the county, city, town or village is not required  for
    22  use  by  such  county,  city,  town or village and authorize the county,
    23  city, town or village to sell or lease such real property to an  agency;
    24  provided,  however,  that title to such land be not declared inalienable
    25  as a forest preserve or a parkland.
    26    2. Notwithstanding the provisions of any  general,  special  or  local
    27  law,  charter  or  ordinance  to the contrary, such sale or lease may be
    28  made without appraisal, public notice (except as provided in subdivision
    29  four of this section), or public bidding for such price  or  rental  and
    30  upon  such terms as may be agreed upon between the county, city, town or
    31  village and said agency; provided, however, that in the case of a  lease
    32  the term may not exceed ninety-nine years and provided, further, that in
    33  cities having a population of one million or more, no such sale or lease
    34  shall  be  made without the approval of a majority of the members of the
    35  borough board of the borough in which such real property is located.
    36    3. Before any sale or lease to an agency shall be authorized, a public
    37  hearing shall be held by the local legislative body or borough board  to
    38  consider the proposed sale or lease.
    39    4.  Notice of such hearing shall be published at least ten days before
    40  the date set for the hearing in such publication and in such  manner  as
    41  may  be  designated by the local legislative body or borough board. Such
    42  notice shall include a description of the real property proposed  to  be
    43  sold  or  leased;  a statement of the estimated fair market value of the
    44  real property proposed to be sold or leased; the value of the  financial
    45  consideration  to  be received by the county, city, town or village from
    46  such sale or lease of the real property; and a statement of the intended
    47  use or disposition of such real property by the agency.
    48    § 5. Subdivision 3 of section 859 of  the  general  municipal  law  is
    49  REPEALED.
    50    §  6.  The opening paragraph and subdivisions 1 and 2 of section 859-a
    51  of the general municipal law, as added by chapter 356  of  the  laws  of
    52  1993, are amended and a new subdivision 3-a is added to read as follows:
    53    Prior  to  providing  any financial assistance [of] totaling more than
    54  one hundred thousand dollars to any project, the agency must comply with
    55  the following prerequisites:

        S. 1635                             6

     1    1. The agency must adopt a resolution describing the project  and  the
     2  type and amount of financial assistance that the agency is contemplating
     3  with  respect  to such project. Such assistance shall be consistent with
     4  the uniform [tax exemption] financial assistance policy adopted  by  the
     5  agency  pursuant  to  subdivision four of section eight hundred seventy-
     6  four of this [chapter] title, unless the agency has followed the  proce-
     7  dures  for deviation from such policy specified in paragraph (b) of such
     8  subdivision.
     9    2. The agency must hold a public hearing with respect to  the  project
    10  and  the  proposed financial assistance being contemplated by the agency
    11  not less than thirty days prior to  executing  a  written  agreement  to
    12  provide  financial  assistance. Said public hearing shall be held in [a]
    13  each city, town or  village  where  the  project  to  receive  financial
    14  assistance  is  located  or  proposes to locate. At said public hearing,
    15  interested parties shall be provided reasonable opportunity, both orally
    16  and in writing, to present their views with respect to the  project  and
    17  the  type  and amount of financial assistance to be provided. The agency
    18  shall also accept written comments up to seven days after  such  hearing
    19  is held.
    20    3-a.  The  agency  shall  maintain  a  complete record of the hearing,
    21  including  all  documents,  oral  statements,  and  written   statements
    22  presented  at  or  within  seven days following the hearing. All members
    23  shall be provided with a copy of such record at least seven days  before
    24  voting  whether  to  approve financial assistance for the project.  Such
    25  record shall also be posted on the agency website  at  the  time  it  is
    26  provided to members.
    27    §  7. The general municipal law is amended by adding four new sections
    28  859-d, 859-e, 859-f and 859-g to read as follows:
    29    § 859-d. Project application and approval  criteria.  1.  The  project
    30  applicant  shall  submit  an  application,  developed by the agency, for
    31  approval of a proposed project  and  financial  assistance.  The  agency
    32  shall  adopt project application review and approval criteria that shall
    33  be applied to all project applications under consideration for  approval
    34  and  financial assistance. The decision to approve or not approve finan-
    35  cial assistance shall be based on, but not limited to, consideration  of
    36  the following criteria:
    37    (a)  Strategic objectives. Consideration is to be given to the purpose
    38  of the project, such as the nature of the planned business activity, the
    39  extent to which the planned business activity is unrepresented or under-
    40  represented in the community, and whether the project involves  a  busi-
    41  ness interested in relocating from outside the state of New York.
    42    (b)  Job  creation. A decision to fund a project shall be based on the
    43  number of jobs to be created or retained by the  proposed  project,  the
    44  range  of  projected  salaries  and  benefits associated with jobs to be
    45  created, and the benchmarks and timeframes to be used by the project  to
    46  determine  whether  it  is  meeting projected job creation and retention
    47  goals.
    48    (c) The financial viability of the project. Approval for funding  must
    49  consider the extent to which the viability and success of the project is
    50  dependent on financial assistance from the agency. The agency shall also
    51  consider  the  amount  and type of financial assistance being requested,
    52  the amount and type of private financing required, the amount  and  type
    53  of  capital  investment to be provided by the project applicant, and any
    54  prior financial assistance provided to the project  or  to  the  project
    55  applicant.

        S. 1635                             7

     1    (d)  Economic benefits. Funding decisions shall consider the potential
     2  economic and financial impact of the project on existing  businesses  in
     3  the  area,  on  the  affected  tax jurisdictions, and on the local labor
     4  market.
     5    (e)  Legal  issues. Consideration shall be given to the project appli-
     6  cant's record of compliance with applicable laws and regulations.
     7    2. The project application  review  and  approval  criteria  shall  be
     8  reviewed  and  approved  annually at a regular meeting of the agency and
     9  made available to the public on the agency's website.
    10    3. The agency shall provide the director  of  the  authorities  budget
    11  office with an electronic copy of the application and project review and
    12  approval criteria within thirty days of their adoption or revision.
    13    4.  The agency shall retain a written record of the evaluation of each
    14  project application to document its decision to provide or  deny  finan-
    15  cial assistance.
    16    §  859-e.  Financial  assistance  agreement. 1. The agency shall enter
    17  into a written agreement with the project applicant prior  to  providing
    18  financial assistance. The agreement shall include the following informa-
    19  tion:
    20    (a) a description of the amount and type of financial assistance to be
    21  provided by the agency, including a description and the value of proper-
    22  ty conveyed at less than fair market value;
    23    (b)  a  description  of  the amount of financing to be provided by the
    24  project applicant, including the amount and type of  capital  investment
    25  to be provided;
    26    (c) the purpose of the project;
    27    (d)  the amount, types, sources and commitments of any private financ-
    28  ing;
    29    (e) the projected number of  new  full-time  and  part-time  positions
    30  expected  to  be created over the period of financial assistance, and an
    31  estimated schedule by year of when those positions will be created;
    32    (f) the number and  types  of  full-time  and  part-time  jobs  to  be
    33  retained,  and  the  number of filled positions at the project as of the
    34  date the agreement is executed;
    35    (g) the types  and  value  of  other  forms  of  financial  assistance
    36  provided to the project or requested by the project applicant from other
    37  state or local government agencies or authorities; and
    38    (h)  the penalties to be imposed on the project applicant if the terms
    39  of the agreement are not met.
    40    2. The length of a financial assistance agreement shall be limited  to
    41  no  more  than  five  years;  provided however that the agreement may be
    42  renewed for up to five additional years if the  agency  determines  that
    43  the  project  applicant  has  acted  in good faith to meet the terms and
    44  conditions of the agreement. In no event may financial assistance in the
    45  form of a loan or exemption from taxation be provided to a  project  for
    46  more than ten years.
    47    3.  The  financial assistance agreement shall be made available to the
    48  public on the website of the agency.
    49    4. The agency shall adopt a methodology to evaluate the conformance of
    50  each assisted project to the  terms  and  conditions  of  the  financial
    51  assistance  agreement.  This  methodology shall be made available to the
    52  public on the agency's website.
    53    § 859-f. Recapture of certain financial  assistance.  1.  The  agency,
    54  pursuant  to the terms and conditions of its financial assistance agree-
    55  ment, may recapture financial assistance to a project from real property
    56  tax exemptions, mortgage recording tax exemptions,  or  local  sales  or

        S. 1635                             8

     1  compensating  use  tax  exemptions  if (a) the project violates state or
     2  federal tax law, labor law, environmental protection  law,  or  contract
     3  law,  or  any state or federal rule or regulation implementing such law,
     4  as  determined  by  a  court of competent jurisdiction or administrative
     5  tribunal, provided that  such  court  or  tribunal  concludes  that  the
     6  violation would cause material harm to the economy or quality of life of
     7  the  community; or (b) all or part of the project's business activity or
     8  workforce is moved to a location outside the  community  served  by  the
     9  agency  and  by doing so violates the terms and conditions of its finan-
    10  cial assistance agreement.
    11    2. An agency which elects  to  initiate  the  recapture  of  financial
    12  assistance  pursuant  to subdivision one of this section must notify the
    13  recipient of such financial assistance in writing that it is in  default
    14  of  its  financial  assistance agreement and may direct the recipient of
    15  financial assistance to repay up to the full amount  of  such  financial
    16  assistance  received  as of the date of the written notice plus interest
    17  at the rate set forth in section five thousand four of the  civil  prac-
    18  tice law and rules.
    19    3.  Financial  assistance  recaptured pursuant to this section and any
    20  interest paid shall be redistributed to affected  tax  jurisdictions  in
    21  proportion  to  the  amount  of  real property tax and other taxes which
    22  would have been received by  each  affected  tax  jurisdiction  had  the
    23  project not been tax exempt. Unless otherwise agreed to in writing by an
    24  affected  tax  jurisdiction,  the agency shall not retain any portion of
    25  such funds as an administrative or project fee.
    26    § 859-g. Wages  and  standards.  Whenever  a  recipient  of  financial
    27  assistance  from an agency enters into a contract, subcontract, lease or
    28  other agreement for or in connection with the construction,  demolition,
    29  reconstruction,  rehabilitation,  repair,  or  renovation of an assisted
    30  project, the recipient of financial assistance shall pay workers engaged
    31  in such work no less than the prevailing rate of  wage  and  supplements
    32  under article eight of the labor law.
    33    §  8.  Subdivision  1  of section 862 of the general municipal law, as
    34  amended by section 1 of part J of chapter 59 of the  laws  of  2013,  is
    35  amended to read as follows:
    36    (1) (a) No [funds] financial assistance of the agency shall be used in
    37  respect  [of] to any project if the [completion thereof would result in]
    38  project approval or provision of financial assistance contributes to the
    39  removal of [an industrial or manufacturing plant of] all or part of  the
    40  project occupant from one area of the state to another area of the state
    41  or  in  the  abandonment  of  one  or more [plants or] facilities of the
    42  project occupant located within the state, or provides the project  with
    43  a competitive advantage over existing like businesses in the same indus-
    44  try  located  in  the  same  city,  town,  or  village  as such project,
    45  provided, however, that [neither restriction]  such  restrictions  shall
    46  not  apply if the agency shall determine on the basis of the application
    47  before it that the project is reasonably  necessary  to  discourage  the
    48  project  occupant  from  removing  such  other  plant  or  facility to a
    49  location outside the state or is reasonably necessary  to  preserve  the
    50  competitive position of the project occupant in its respective industry.
    51    (b)  For  the  purposes  of  this subdivision, "competitive advantage"
    52  shall include trade secrets that are submitted to an agency by a commer-
    53  cial enterprise or derived from information obtained from  a  commercial
    54  enterprise  and which if disclosed would cause substantial injury to the
    55  competitive position of the subject  enterprise.  Other  factors  to  be
    56  considered in determining whether a trade secret exists include:

        S. 1635                             9

     1    (i) the extent to which the information is known outside the business;
     2    (ii)  the  extent  to  which  the  information is known by a business'
     3  employees and others involved in the business;
     4    (iii) the extent of measures taken by a business to guard the  secrecy
     5  of the information;
     6    (iv)  the  value  of  the information to a business and to its compet-
     7  itors;
     8    (v) the amount of effort or money expended by a business in developing
     9  the information; and,
    10    (vi) the ease or difficulty with which the information could be  prop-
    11  erly  acquired  or  duplicated  by others. If there has been a voluntary
    12  disclosure by the plaintiff, or if the facts pertaining  to  the  matter
    13  are a subject of general knowledge in the trade, then any property right
    14  has evaporated.
    15    §  9.  Subdivision  4  of section 874 of the general municipal law, as
    16  amended by chapter 357 of the laws of 1993 and paragraph (a) as  amended
    17  by chapter 386 of the laws of 2019, is amended to read as follows:
    18    (4)  (a)  The agency shall [establish] adopt a uniform [tax exemption]
    19  financial assistance policy, [with input from] subject to  the  approval
    20  of  all  affected  tax  jurisdictions,  which shall be applicable to the
    21  provision of financial assistance  pursuant  to  section  eight  hundred
    22  fifty-nine-a  of  this  [chapter] title and shall provide guidelines for
    23  the claiming  of  real  property,  mortgage  recording,  and  sales  tax
    24  exemptions.  Such guidelines shall include, but not be limited to: peri-
    25  od  of  exemption;  payments  in  lieu  of  taxes,  as  a  percentage of
    26  [exemption] taxes that would  have  been  levied  by  or  on  behalf  of
    27  affected  tax  jurisdictions if the project was not tax exempt by reason
    28  of agency involvement; types of projects for  which  exemptions  can  be
    29  claimed; procedures for payments in lieu of taxes and instances in which
    30  real property appraisals are to be performed as a part of an application
    31  for  tax  exemption; in addition, agencies shall in adopting such policy
    32  consider such issues as: the extent to which a project  will  create  or
    33  retain  permanent,  private  sector jobs; the estimated value of any tax
    34  exemptions to be provided; whether affected tax jurisdictions  shall  be
    35  reimbursed  by  the  project  occupant if a project does not fulfill the
    36  purposes for which an exemption was provided; the impact of  a  proposed
    37  project  on  existing  and  proposed businesses and economic development
    38  projects in the vicinity; the amount of private sector investment gener-
    39  ated or likely to be generated by the proposed project; the demonstrated
    40  public support for the proposed project; the likelihood of accomplishing
    41  the proposed project in a timely fashion; the  effect  of  the  proposed
    42  project  upon  the  environment;  the  extent  to which the project will
    43  utilize, to the fullest extent practicable  and  economically  feasible,
    44  resource conservation, energy efficiency, green technologies, and alter-
    45  native  and  renewable energy measures; the extent to which the proposed
    46  project will require the provision of  additional  services,  including,
    47  but not limited to additional educational, transportation, police, emer-
    48  gency  medical  or  fire  services; and the extent to which the proposed
    49  project will provide additional sources of  revenue  for  municipalities
    50  and  school  districts.  The adopted uniform financial assistance policy
    51  shall be provided to the chief executive officer and the members of  the
    52  governing  body  of  each  affected  tax  jurisdiction and shall be made
    53  available for public inspection at the agency's office and on the  agen-
    54  cy's website upon its adoption.
    55    (b)  The agency shall [establish a procedure] adopt criteria for devi-
    56  ation from the  uniform  [tax  exemption]  financial  assistance  policy

        S. 1635                            10

     1  required  pursuant  to  this  subdivision, which shall be subject to the
     2  approval of all affected local tax jurisdictions. The agency  shall  set
     3  forth  in  writing the reasons for deviation from such policy, and shall
     4  further  notify  the affected local taxing jurisdictions of the proposed
     5  deviation from such policy and the reasons therefor not less than  sixty
     6  days  before  such deviation from the uniform tax exemption policy takes
     7  effect.
     8    § 10. Section 1953 of the public authorities law, as added by  chapter
     9  759 of the laws of 1967, the opening paragraph and subdivisions 9 and 13
    10  as  amended  by  chapter  907  of  the laws of 1972 and subdivision 8 as
    11  amended, subdivision 14 as added and subdivisions 15 and  16  as  renum-
    12  bered by chapter 356 of the laws of 1993, is amended to read as follows:
    13    §  1953.  Purpose  and  powers  of  the authority. The purposes of the
    14  authority shall be to promote, develop,  encourage  and  assist  in  the
    15  acquiring,  constructing, reconstructing, improving, maintaining, equip-
    16  ping and furnishing industrial, manufacturing, warehouse, civic  facili-
    17  ties,  and commercial research facilities including industrial pollution
    18  control facilities, transportation facilities including but not  limited
    19  to  those relating to water, highway, rail and air, in one or more areas
    20  of the city, particularly but not exclusively at the site  of  what  was
    21  formerly  the  Troy  airport including an airstrip or airport located in
    22  the southern section of the city and thereby advance  the  job  opportu-
    23  nities, health, general prosperity and economic welfare of the people of
    24  said  city  and  to improve their standard of living; provided, however,
    25  that the authority shall not undertake any  project  if  the  completion
    26  thereof  would  result  in the removal of an industrial or manufacturing
    27  plant of the project occupant from one area of the state to another area
    28  of the state or in the abandonment of one or more plants  or  facilities
    29  of  the  project  applicant located within the state, provided, however,
    30  that neither restriction shall apply if the authority shall determine on
    31  the basis of the application before it that the  project  is  reasonably
    32  necessary  to  discourage  the project occupant from removing such other
    33  plant or facility to a location  outside  the  state  or  is  reasonably
    34  necessary  to  preserve the competitive position of the project occupant
    35  in its respective industry. To carry out said  purposes,  the  authority
    36  shall have power:
    37    1. To sue and be sued;
    38    2. To have a seal and alter the same at pleasure;
    39    3. To acquire, hold and dispose of personal property for its corporate
    40  purpose;
    41    4. To acquire by purchase, grant, lease, gift, condemnation, or other-
    42  wise  and to use, real property or rights or easements therein necessary
    43  for its corporate  purposes,  and  to  sell,  convey,  mortgage,  lease,
    44  pledge,  exchange  or  otherwise  dispose  of  any such property in such
    45  manner as the authority shall determine. With respect to  real  property
    46  conveyed  to it by the city, however, such power of disposition shall be
    47  limited as hereinafter  provided  in  section  nineteen  hundred  [five]
    48  fifty-five of this title;
    49    5.   To acquire real property within the city of Troy as necessary for
    50  its corporate purposes pursuant to section eight  hundred  fifty-eight-c
    51  of the general municipal law;
    52    6.  To  make  by-laws for the management and regulation of its affairs
    53  and, subject to agreements with its bondholders, for the  regulation  of
    54  the use of the project;

        S. 1635                            11

     1    [6.]  7.  With  the  consent of the city, to use agents, employees and
     2  facilities of the city, paying the city its  agreed  proportion  of  the
     3  compensation or costs;
     4    [7.]  8. To appoint officers, agents and employees, to prescribe their
     5  qualifications and to fix their compensation and to pay the same out  of
     6  funds of the authority, subject, however, to the provisions of the civil
     7  service  law  as  hereinafter  provided in section nineteen hundred [and
     8  four] fifty-four of this title;
     9    [8.] 9. To appoint an attorney, who may be the corporation counsel  of
    10  the  city,  and  to  fix  the attorney's compensation for services which
    11  shall be payable to the attorney,  and  to  retain  and  employ  private
    12  consultants  for  professional  and  technical  assistance  and  advice;
    13  provided that an attorney acting as bond counsel for a project must file
    14  with the authority a written statement in which the attorney  identifies
    15  each  party  to  the transaction which such attorney represents. If bond
    16  counsel provides any legal services to parties other than the authority,
    17  the written  statement  must  describe  the  nature  of  legal  services
    18  provided by such bond counsel to all parties to the transaction, includ-
    19  ing the nature of the services provided to the authority;
    20    [9.] 10. To make contracts and leases upon such terms as the authority
    21  shall  deem appropriate, including without limitation leases which grant
    22  the tenant of a project an option to renew or an option to purchase  the
    23  project,  or  both,  at  a fixed or otherwise predetermined price and to
    24  execute all instruments necessary or convenient;
    25    [10.] 11. To acquire, construct, reconstruct,  lease,  improve,  main-
    26  tain, equip or furnish one or more projects;
    27    [11.]  12.  To  accept gifts, grants, loans or contributions from, and
    28  enter into contracts or other transactions with, the United  States  and
    29  the  state or any agency of either of them, any municipality, any public
    30  or private corporation or any other legal entity, and to  use  any  such
    31  gifts, grants, loans or contributions for any of its corporate purposes;
    32    [12.]  13.  To  provide  financial  assistance in the form of loans to
    33  improve, maintain or equip one or  more  projects  consistent  with  its
    34  corporate purposes;
    35    14.  To  provide  financial assistance in the form of grants to one or
    36  more projects consistent with its corporate purposes;
    37    15. To borrow money and to issue bonds and to provide for  the  rights
    38  of the holders thereof;
    39    [13.]  16. To designate the depositories of its money either within or
    40  without the state of New York;
    41    [14.] 17. To enter into  agreements  requiring  payments  in  lieu  of
    42  taxes.  Such  agreements  shall  be  in writing and in addition to other
    43  terms shall contain: the amount due annually to each affected tax juris-
    44  diction (or a formula by which the amount due can  be  calculated),  the
    45  name  and address of the person, office or agency to which payment shall
    46  be delivered, the date on which payment shall be made, and the  date  on
    47  which  payment shall be considered delinquent if not paid. Unless other-
    48  wise agreed by the affected tax jurisdictions, any such agreement  shall
    49  provide that payments in lieu of taxes shall be allocated among affected
    50  tax  jurisdictions  in proportion to the amount of real property tax and
    51  other taxes which would have been received by each affected  tax  juris-
    52  diction  had  the  project  not been tax exempt due to the status of the
    53  authority involved in the project. A copy of any such agreement shall be
    54  delivered to each affected tax jurisdiction within fifteen days of sign-
    55  ing the agreement.  In  the  absence  of  any  such  written  agreement,
    56  payments  in  lieu  of taxes made by an agency shall be allocated in the

        S. 1635                            12

     1  same proportions as they had  been  prior  to  January  first,  nineteen
     2  hundred  ninety-three for so long as the authority's activities render a
     3  project non-taxable by affected tax jurisdictions.
     4    [15.] 18. To establish and reestablish its fiscal year; and
     5    [16.]  19.  To  do all things necessary or convenient to carry out its
     6  purposes and exercise the powers expressly given in this title.
     7    § 11. Section 1953-a of the public authorities law, as added by  chap-
     8  ter  356 of the laws of 1993, subdivision 1 as amended by chapter 357 of
     9  the laws of 1993, is amended to read as follows:
    10    § 1953-a. Additional  prerequisites  to  the  provision  of  financial
    11  assistance.  Prior  to  providing any financial assistance [of] totaling
    12  more than one hundred thousand dollars to  any  project,  the  authority
    13  must comply with the following prerequisites:
    14    1.  The  authority  must adopt a resolution describing the project and
    15  type and amount of  the  financial  assistance  that  the  authority  is
    16  contemplating  with  respect  to  such project. Such assistance shall be
    17  consistent with the uniform [tax exemption] financial assistance  policy
    18  adopted  by  the  agency pursuant to subdivision one of section nineteen
    19  hundred sixty-three-a of this [chapter] title,  unless  the  agency  has
    20  followed procedures for deviation from such policy specified in subdivi-
    21  sion two of such section.
    22    2.  The  authority  must  hold  a  public  hearing with respect to the
    23  project and the proposed financial assistance being contemplated by  the
    24  authority  not less than thirty days prior to executing a written agree-
    25  ment to provide financial assistance.   At said public  hearing,  inter-
    26  ested  parties shall be provided reasonable opportunity, both orally and
    27  in writing, to present their views with respect to the project  and  the
    28  type  and  amount  of financial assistance to be provided. The authority
    29  shall also accept written comments up to seven days after  such  hearing
    30  is held.
    31    3.  The authority must give at least ten days published notice of said
    32  public hearing and shall, at the same time, provide notice of such hear-
    33  ing to the chief executive officer  of  the  affected  tax  jurisdiction
    34  within  which  the  project is located. The notice of hearing must state
    35  the time and  place  of  the  hearing,  contain  a  general,  functional
    36  description  of  the  project,  describe the prospective location of the
    37  project, identify the initial owner, operator or manager of the  project
    38  and  generally  describe  the  financial  assistance contemplated by the
    39  authority with respect to the project.
    40    4. The authority shall maintain a  complete  record  of  the  hearing,
    41  including  all  documents  and  oral  statements, and written statements
    42  presented at or within seven days following such  hearing.  All  members
    43  shall  be provided with a copy of such record at least seven days before
    44  voting whether to approve financial assistance  for  the  project.  Such
    45  record  shall  also be posted on the authority website at the time it is
    46  provided to members.
    47    § 12. The public  authorities  law  is  amended  by  adding  four  new
    48  sections 1953-b, 1953-c, 1953-d and 1953-e to read as follows:
    49    §  1953-b.  Project  application and approval criteria. 1. The project
    50  applicant shall submit an application, developed by the  authority,  for
    51  approval  of  a proposed project and financial assistance. The authority
    52  shall adopt project application review and approval criteria that  shall
    53  be  applied to all project applications under consideration for approval
    54  and financial assistance. The decision to approve or not approve  finan-
    55  cial  assistance shall be based on, but not limited to, consideration of
    56  the following criteria:

        S. 1635                            13

     1    (a) Strategic objectives. Consideration is to be given to the  purpose
     2  of the project, such as the nature of the planned business activity, the
     3  extent to which the planned business activity is unrepresented or under-
     4  represented  in  the community, and whether the project involves a busi-
     5  ness interested in relocating from outside the state of New York.
     6    (b)  Job  creation. A decision to fund a project shall be based on the
     7  number of jobs to be created or retained by the  proposed  project,  the
     8  range  of  projected  salaries  and  benefits associated with jobs to be
     9  created, and the benchmarks and timeframes to be used by the project  to
    10  determine  whether  it  is  meeting projected job creation and retention
    11  goals.
    12    (c) The financial viability of the project. Approval for funding shall
    13  consider the extent to which the viability and success of the project is
    14  dependent on financial assistance  from  the  authority.  The  authority
    15  shall  also  consider  the amount and type of financial assistance being
    16  requested, the amount and type of private financing required, the amount
    17  and type of capital investment to be provided by the project  applicant,
    18  and  any  prior  financial  assistance provided to the project or to the
    19  project applicant.
    20    (d) Economic benefits. Funding decisions shall consider the  potential
    21  economic  and  financial impact of the project on existing businesses in
    22  the area, on the affected tax jurisdictions,  and  on  the  local  labor
    23  market.
    24    (e)  Legal  issues. Consideration shall be given to the project appli-
    25  cant's record of compliance with applicable laws and regulations.
    26    2. The project application  review  and  approval  criteria  shall  be
    27  reviewed and approved annually at a regular meeting of the authority and
    28  made available to the public on the authority's website.
    29    3.  The authority shall provide the director of the authorities budget
    30  office with an electronic copy of the application and project review and
    31  approval criteria within thirty days of their adoption or revision.
    32    4. The authority shall retain a written record of  the  evaluation  of
    33  each  project  application  to  document its decision to provide or deny
    34  financial assistance.
    35    § 1953-c. Financial assistance agreement. 1. The authority shall enter
    36  into a written agreement with the project applicant prior  to  providing
    37  financial assistance. The agreement shall include the following informa-
    38  tion:
    39    (a) a description of the amount and type of financial assistance to be
    40  provided  by  the  authority,  including  a description and the value of
    41  property conveyed at less than fair market value;
    42    (b) a description of the amount of financing to  be  provided  by  the
    43  project  applicant,  including the amount and type of capital investment
    44  to be provided;
    45    (c) the purpose of the project;
    46    (d) the amount, types, sources and commitments of any private  financ-
    47  ing;
    48    (e)  the  projected  number  of  new full-time and part-time positions
    49  expected to be created over the period of financial assistance,  and  an
    50  estimated schedule by year of when those positions will be created;
    51    (f)  the  number  and  types  of  full-time  and  part-time jobs to be
    52  retained, and the number of filled positions at the project  as  of  the
    53  date the agreement is executed;
    54    (g)  the  types  and  value  of  other  forms  of financial assistance
    55  provided to the project or requested by the project applicant from other
    56  state or local government agencies or authorities; and

        S. 1635                            14

     1    (h) the penalties to be imposed on the project applicant if the  terms
     2  of the agreement are not met.
     3    2.  The length of a financial assistance agreement shall be limited to
     4  no more than five years; provided however  that  the  agreement  may  be
     5  renewed for up to five additional years if the authority determines that
     6  the  project  applicant  has  acted  in good faith to meet the terms and
     7  conditions of the agreement. In no event may financial assistance in the
     8  form of a loan or exemption from taxation be provided to a  project  for
     9  more than ten years.
    10    3.  The  financial assistance agreement shall be made available to the
    11  public on the website of the authority.
    12    4. The authority shall adopt a methodology to evaluate the conformance
    13  of each assisted project to the terms and conditions  of  the  financial
    14  assistance  agreement.  This  methodology shall be made available to the
    15  public on the authority's website.
    16    § 1953-d. Recapture of certain financial assistance. 1. The authority,
    17  pursuant to the terms and conditions of its financial assistance  agree-
    18  ment,  may recapture financial assistance to a project from the proceeds
    19  of bonds issued by the authority, mortgage recording tax exemptions,  or
    20  local  sales  or  compensating  use  tax  exemptions  if (a) the project
    21  violates state or federal tax law, labor law,  environmental  protection
    22  law,  or contract law, or any state or federal rule or regulation imple-
    23  menting such law, as determined by a court of competent jurisdiction  or
    24  administrative  tribunal, provided that such court or tribunal concludes
    25  that the violation would cause material harm to the economy  or  quality
    26  of  life  of the community; or (b) all or part of the project's business
    27  activity or workforce is moved  to  a  location  outside  the  community
    28  served  by  the  authority and by doing so violates the terms and condi-
    29  tions of its financial assistance agreement.
    30    2. An authority which elects to initiate the  recapture  of  financial
    31  assistance  pursuant  to subdivision one of section eight hundred fifty-
    32  nine-f of the general municipal law must notify the  recipient  of  such
    33  financial  assistance  in writing that it is in default of its financial
    34  assistance agreement and may direct the recipient of  financial  assist-
    35  ance  to  repay  up  to  the  full  amount  of such financial assistance
    36  received as of the date of the written notice plus interest at the  rate
    37  set  forth  in  section five thousand four of the civil practice law and
    38  rules.
    39    3. Financial assistance recaptured pursuant to this  section  and  any
    40  interest  paid  shall  be redistributed to affected tax jurisdictions in
    41  proportion to the amount of real property  tax  and  other  taxes  which
    42  would  have  been  received  by  each  affected tax jurisdiction had the
    43  project not been tax exempt. Unless otherwise agreed to in writing by an
    44  affected tax jurisdiction, the authority shall not retain any portion of
    45  such funds as an administrative or project fee.
    46    § 1953-e. Wages and  standards.  Whenever  a  recipient  of  financial
    47  assistance from the authority enters into a contract, subcontract, lease
    48  or  other  agreement for or in connection with the construction, demoli-
    49  tion,  reconstruction,  rehabilitation,  repair,  or  renovation  of  an
    50  assisted  project, the recipient of financial assistance shall pay work-
    51  ers engaged in such work no less than the prevailing rate  of  wage  and
    52  supplements under article eight of the labor law.
    53    §  13.  Section  1963-a  of  the public authorities law, as amended by
    54  chapter 357 of the laws of 1993 and subdivision 1 as amended by  chapter
    55  386 of the laws of 2019, is amended to read as follows:

        S. 1635                            15

     1    §  1963-a. Uniform [tax exemption] financial assistance policy. 1. The
     2  authority shall [establish] adopt a uniform  [tax  exemption]  financial
     3  assistance policy, [with input from] subject to the approval of affected
     4  local  taxing  jurisdictions, which shall be applicable to provisions of
     5  financial  assistance pursuant to section nineteen hundred fifty-three-a
     6  of this title and shall provide guidelines  for  the  claiming  of  real
     7  property,  mortgage recording, and sales tax exemptions. Such guidelines
     8  shall include, but not be limited to: period of exemption;  payments  in
     9  lieu  of taxes as a percentage of [exemption] taxes that would have been
    10  levied by or on behalf of affected tax jurisdictions if the project  was
    11  not  exempt  by  reason  of authority involvement; types of projects for
    12  which exemptions can be claimed; procedures  for  payments  in  lieu  of
    13  taxes  and  instances  in  which  real  property  appraisals  are  to be
    14  performed as a part of an application for tax  exemption;  in  addition,
    15  the authority in adopting such policy shall consider such issues as: the
    16  extent  to  which  a  project  will  create or retain permanent, private
    17  sector jobs; the estimated value of any tax exemption  to  be  provided;
    18  whether  affected  tax jurisdictions should be reimbursed by the project
    19  occupant if a project  does  not  fulfill  the  purposes  for  which  an
    20  exemption was provided; the impact of a proposed project on existing and
    21  proposed  businesses  and economic development projects in the vicinity;
    22  the amount of private sector investment generated or likely to be gener-
    23  ated by the proposed project; the demonstrated public  support  for  the
    24  proposed  project;  the likelihood of accomplishing the proposed project
    25  in a timely fashion; the effect of the proposed project upon  the  envi-
    26  ronment;  the  extent  to which the project will utilize, to the fullest
    27  extent practicable and  economically  feasible,  resource  conservation,
    28  energy  efficiency,  green  technologies,  and alternative and renewable
    29  energy measures; the extent to which the proposed project  will  require
    30  the  provision  of  additional  services,  including, but not limited to
    31  additional educational, transportation,  police,  emergency  medical  or
    32  fire services; and the extent to which the proposed project will provide
    33  additional  sources  [or]  of  revenue  for  municipalities  and  school
    34  districts. The adopted uniform  financial  assistance  policy  shall  be
    35  provided  to  the  chief  executive officer and members of the governing
    36  body of each affected tax jurisdiction and shall be made  available  for
    37  public  inspection  at  the  authority's  office  and on the authority's
    38  website upon its adoption.
    39    2. The authority shall [establish  a  procedure]  adopt  criteria  for
    40  deviation  from  the uniform [tax exemption] financial assistance policy
    41  required pursuant to this section which shall be subject to the approval
    42  of affected local tax jurisdictions. The authority shall  set  forth  in
    43  writing  the  reasons  for deviation from such policy, and shall further
    44  notify the affected tax jurisdictions of  the  proposed  deviation  from
    45  such  policy  and  the  reasons therefor not less than sixty days before
    46  such deviation from the uniform tax exemption policy takes effect.
    47    § 14. Section 2306 of the public authorities law, as added by  chapter
    48  915 of the laws of 1969, the opening paragraph and an undesignated para-
    49  graph  as  amended  by chapter 304 of the laws of 2013, subdivision 9 as
    50  amended by chapter 556 of the laws of 1973 and subdivision 8 as amended,
    51  subdivision 14 as added and subdivisions 15  and  16  as  renumbered  by
    52  chapter 356 of the laws of 1993, is amended to read as follows:
    53    §  2306.  Purpose  and  powers  of  the authority. The purposes of the
    54  authority shall be to promote, develop,  encourage  and  assist  in  the
    55  acquiring,  constructing, reconstructing, improving, maintaining, equip-
    56  ping and furnishing industrial, manufacturing, warehouse, civic  facili-

        S. 1635                            16

     1  ties,  commercial  and  research  facilities and facilities for use by a
     2  federal agency or a  medical  facility  including  industrial  pollution
     3  control  facilities, which may include transportation facilities includ-
     4  ing  but  not limited to those relating to water, highway, rail and air,
     5  in one or more areas of the city, and thereby advance the  job  opportu-
     6  nities, health, general prosperity and economic welfare of the people of
     7  said  city  and  to  improve  their medical care and standard of living;
     8  provided, however, that the authority shall not undertake any project if
     9  the completion thereof would result in the removal of an  industrial  or
    10  manufacturing  plant  of the project occupant from one area of the state
    11  to another area of the state or in abandonment of one or more plants  or
    12  facilities  of the project applicant located within the state, provided,
    13  however, that neither restriction shall apply  if  the  authority  shall
    14  determine  on the basis of the application before it that the project is
    15  reasonably necessary to discourage the project  occupant  from  removing
    16  such  other  plant  or  facility  to  a location outside the state or is
    17  reasonably necessary to preserve the competitive position of the project
    18  occupant in its respective industry. Except as otherwise provided for in
    19  this section, no financial assistance of the authority shall be provided
    20  in respect of any project where facilities or property that are primari-
    21  ly used in making retail sales to customers who  personally  visit  such
    22  facilities constitute more than one-third of the total project cost. For
    23  the  purposes of this article, "retail sales" shall mean: (i) sales by a
    24  registered vendor under article twenty-eight of the  tax  law  primarily
    25  engaged  in the retail sale of tangible personal property, as defined in
    26  subparagraph (i) of paragraph four of subdivision (b) of section  eleven
    27  hundred  one  of the tax law; or (ii) sales of a service to such custom-
    28  ers. Except, however, that tourism destination  projects  shall  not  be
    29  prohibited  by this paragraph. For the purpose of this paragraph, "tour-
    30  ism destination" shall mean a location or facility which  is  likely  to
    31  attract  a  significant  number  of  visitors  from outside the economic
    32  development region as established by section two hundred thirty  of  the
    33  economic development law, in which the project is located.
    34    Notwithstanding  the  provisions of this section to the contrary, such
    35  financial assistance may, however, be provided to a project where facil-
    36  ities or property that are primarily used  in  making  retail  sales  of
    37  goods  or  services to customers who personally visit such facilities to
    38  obtain such goods or services constitute  more  than  one-third  of  the
    39  total  project  cost,  where: (i) the predominant purpose of the project
    40  would be to make available goods or services which would  not,  but  for
    41  the  project,  be  reasonably accessible to the residents of the city of
    42  Auburn because of a lack of reasonably accessible retail  trade  facili-
    43  ties  offering such goods or services; or (ii) the project is located in
    44  a highly distressed area. With respect to projects  authorized  pursuant
    45  to  this  paragraph  no  project  shall be approved unless the authority
    46  shall find after the public hearing  required  by  section  twenty-three
    47  hundred  seven of this title that undertaking the project will serve the
    48  public purposes of this article by preserving permanent, private  sector
    49  jobs  or increasing the overall number of permanent, private sector jobs
    50  in the state. Where the authority makes such a finding, prior to provid-
    51  ing financial assistance to the project  by  the  authority,  the  chief
    52  executive  officer  of  the  city  of  Auburn shall confirm the proposed
    53  action of the authority. To carry out said purpose, the authority  shall
    54  have power:
    55    1. To sue and be sued;
    56    2. To have a seal and alter the same at pleasure;

        S. 1635                            17

     1    3. To acquire, hold and dispose of personal property for its corporate
     2  purpose;
     3    4. To acquire by purchase, grant, lease, gift, condemnation, or other-
     4  wise  and to use, real property or rights or easements therein necessary
     5  for its corporate  purposes,  and  to  sell,  convey,  mortgage,  lease,
     6  pledge,  exchange  or  otherwise  dispose  of  any such property in such
     7  manner as the authority shall determine. With respect to  real  property
     8  conveyed  to it by the city, however, such power of disposition shall be
     9  limited as hereinafter provided in section twenty-three hundred  ten  of
    10  this title;
    11    5. To acquire real property within the city of Auburn as necessary for
    12  its  corporate  purposes pursuant to section eight hundred fifty-eight-c
    13  of the general municipal law;
    14    6. To make by-laws for the management and regulation  of  its  affairs
    15  and,  subject  to agreements with its bondholders, for the regulation of
    16  the use of the project[.];
    17    [6.] 7. With the consent of the city, to  use  agents,  employees  and
    18  facilities  of  the  city,  paying the city its agreed proportion of the
    19  compensation or costs[.];
    20    [7.] 8. To appoint officers, agents and employees, to prescribe  their
    21  qualifications  and to fix their compensation and to pay the same out of
    22  funds of the authority, subject, however, to the provisions of the civil
    23  service law hereinafter provided in section twenty-three  hundred  eight
    24  of this title;
    25    [8.]  9.  To  retain  and employ financial advisors, engineers, archi-
    26  tects, attorneys and other consultants for  professional  and  technical
    27  assistance  and  advice;  that  an attorney acting as bond counsel for a
    28  project must file with the authority a written statement  in  which  the
    29  attorney  identifies  each  party to the transaction which such attorney
    30  represents. If bond counsel provides any legal services to  the  parties
    31  other than the authority, the written statement must describe the nature
    32  of  legal  services  provided by such bond counsel to all parties to the
    33  transaction, including the  nature  of  the  services  provided  to  the
    34  authority;
    35    [9.] 10. To make contracts and leases upon such terms as the authority
    36  shall  deem appropriate, including without limitation leases which grant
    37  the tenant of a project an option to renew or an option to purchase  the
    38  project,  or  both,  at a fixed or otherwise predetermined price, and to
    39  execute all instruments necessary or convenient;
    40    [10.] 11. To acquire, construct, reconstruct,  lease,  improve,  main-
    41  tain, equip or furnish one or more projects;
    42    [11.]  12.  To  accept gifts, grants, loans or contributions from, and
    43  enter into contracts or other transactions with, the United  States  and
    44  the  state or any agency of either of them, any municipality, any public
    45  or private corporation or any other legal entity, and to  use  any  such
    46  gifts, grants, loans or contributions for any of its corporate purposes;
    47    [12.]  13.  To  provide  financial  assistance in the form of loans to
    48  improve, maintain or equip one or  more  projects  consistent  with  its
    49  corporate purposes;
    50    14.  To  provide financial assistance in the form of grants for one or
    51  more projects consistent with its corporate purposes;
    52    15. To borrow money and to issue bonds and to provide for  the  rights
    53  of the holders thereof;
    54    [13.]  16.  To  designate the depositories of its money in the city of
    55  Auburn[.];

        S. 1635                            18

     1    [14.] 17. To enter into  agreements  requiring  payments  in  lieu  of
     2  taxes.  Such  agreements  shall  be  in writing and in addition to other
     3  terms shall contain: the amount due annually to each affected tax juris-
     4  diction (or a formula by which the amount due can  be  calculated),  the
     5  name  and address of the person, office or agency to which payment shall
     6  be delivered, the date on which the payment shall be made, and the  date
     7  on  which  payment  shall  be  considered delinquent if not paid. Unless
     8  otherwise agreed by the affected tax jurisdictions, any  such  agreement
     9  shall  provide  that  payments in lieu of taxes shall be allocated among
    10  affected tax jurisdictions in proportion to the amount of real  property
    11  tax  and other taxes which would have been received by each affected tax
    12  jurisdiction had the project not been tax exempt due to  the  status  of
    13  the  agency  involved in the project. A copy of any such agreement shall
    14  be delivered to each tax affected jurisdiction within  fifteen  days  of
    15  signing  the  agreement.  In  the absence of any such written agreement,
    16  payments in lieu of taxes shall be allocated in the same proportions  as
    17  they  had been prior to January first, nineteen hundred ninety-three for
    18  so long as the authority's activities render a  project  non-taxable  by
    19  affected tax jurisdictions[.];
    20    [15.] 18. To establish and reestablish its fiscal year; and
    21    [16.]  19.  To  do all things necessary or convenient to carry out its
    22  purposes and exercise the powers expressly given in this title.
    23    § 15. Section 2307 of the public authorities law, as added by  chapter
    24  356  of the laws of 1993, and subdivision 1 as amended by chapter 357 of
    25  the laws of 1993, is amended to read as follows:
    26    § 2307. Additional prerequisites to the provision of financial assist-
    27  ance. Prior to providing any financial  assistance  [of]  totaling  more
    28  than  one  hundred  thousand  dollars to any project, the authority must
    29  comply with the following prerequisites:
    30    1. The authority must adopt a resolution describing  the  project  and
    31  type  and  amount  of  the  financial  assistance  that the authority is
    32  contemplating with respect to such project.  Such  assistance  shall  be
    33  consistent  with the uniform [tax exemption] financial assistance policy
    34  adopted by the agency pursuant to subdivision  one  of  section  twenty-
    35  three  hundred  fifteen  of this chapter, unless the agency has followed
    36  procedures for deviation from such policy specified in  subdivision  two
    37  of such section.
    38    2.  The  authority  must  hold  a  public  hearing with respect to the
    39  project and the proposed financial assistance being contemplated by  the
    40  authority  not less than thirty days prior to executing a written agree-
    41  ment to provide financial assistance.   At said public  hearing,  inter-
    42  ested  parties shall be provided reasonable opportunity, both orally and
    43  in writing, to present their views with respect to the project  and  the
    44  type  and  amount  of financial assistance to be provided. The authority
    45  shall also accept written comments up to seven days after  such  hearing
    46  is held.
    47    3.  The authority must give at least ten days published notice of said
    48  public hearing and shall, at the same time, provide notice of such hear-
    49  ing to the chief executive officer of each affected tax  [jurisidiction]
    50  jurisdiction  within which the project is located. The notice of hearing
    51  must state the time and place of the hearing, contain a  general,  func-
    52  tional  description of the project, describe the prospective location of
    53  the project, identify the initial owner,  operator  or  manager  of  the
    54  project  and generally describe the financial assistance contemplated by
    55  the authority with respect to the project.

        S. 1635                            19

     1    4. The authority shall maintain a  complete  record  of  the  hearing,
     2  including  all  documents  and  oral  statements, and written statements
     3  presented at or within seven days following such  hearing.  All  members
     4  shall  be provided with a copy of such record at least seven days before
     5  deciding  whether  to approve financial assistance for the project. Such
     6  record shall also be posted on the authority's website at the time it is
     7  provided to members.
     8    § 16. The public  authorities  law  is  amended  by  adding  four  new
     9  sections 2307-a, 2307-b, 2307-c and 2307-d to read as follows:
    10    §  2307-a.  Project  application and approval criteria. 1. The project
    11  applicant shall submit an application, developed by the  authority,  for
    12  approval  of  a proposed project and financial assistance. The authority
    13  shall adopt project application review and approval criteria that  shall
    14  be  applied to all project applications under consideration for approval
    15  and financial assistance. The decision to approve or not approve  finan-
    16  cial  assistance shall be based on, but not limited to, consideration of
    17  the following criteria:
    18    (a) Strategic objectives. Consideration is to be given to the  purpose
    19  of the project, such as the nature of the planned business activity, the
    20  extent to which the planned business activity is unrepresented or under-
    21  represented  in  the community, and whether the project involves a busi-
    22  ness interested in relocating from outside the state of New York.
    23    (b) Job creation. A decision to fund a project shall be based  on  the
    24  number  of  jobs  to be created or retained by the proposed project, the
    25  range of projected salaries and benefits  associated  with  jobs  to  be
    26  created,  and the benchmarks and timeframes to be used by the project to
    27  determine whether it is meeting projected  job  creation  and  retention
    28  goals.
    29    (c) The financial viability of the project. Approval for funding shall
    30  consider the extent to which the viability and success of the project is
    31  dependent  on  financial  assistance  from  the authority. The authority
    32  shall also consider the amount and type of  financial  assistance  being
    33  requested, the amount and type of private financing required, the amount
    34  and  type of capital investment to be provided by the project applicant,
    35  and any prior financial assistance provided to the  project  or  to  the
    36  project applicant.
    37    (d)  Economic benefits. Funding decisions shall consider the potential
    38  economic and financial impact of the project on existing  businesses  in
    39  the  area,  on  the  affected  tax jurisdictions, and on the local labor
    40  market.
    41    (e) Legal issues. Consideration shall be given to the  project  appli-
    42  cant's record of compliance with applicable laws and regulations.
    43    2.  The  project  application  review  and  approval criteria shall be
    44  reviewed and approved annually at a regular meeting of the authority and
    45  made available to the public on the authority's website.
    46    3. The authority shall provide the director of the authorities  budget
    47  office with an electronic copy of the application and project review and
    48  approval criteria within thirty days of their adoption or revision.
    49    4.  The  authority  shall retain a written record of the evaluation of
    50  each project application to document its decision  to  provide  or  deny
    51  financial assistance.
    52    § 2307-b. Financial assistance agreement. 1. The authority shall enter
    53  into  a  written agreement with the project applicant prior to providing
    54  financial assistance. The agreement shall include the following informa-
    55  tion:

        S. 1635                            20

     1    (a) a description of the amount and type of financial assistance to be
     2  provided by the authority, including a  description  and  the  value  of
     3  property conveyed at less than fair market value;
     4    (b)  a  description  of  the amount of financing to be provided by the
     5  project applicant, including the amount and type of  capital  investment
     6  to be provided;
     7    (c) the purpose of the project;
     8    (d)  the amount, types, sources and commitments of any private financ-
     9  ing;
    10    (e) the projected number of  new  full-time  and  part-time  positions
    11  expected  to  be created over the period of financial assistance, and an
    12  estimated schedule by year of when those positions will be created;
    13    (f) the number and  types  of  full-time  and  part-time  jobs  to  be
    14  retained,  and  the  number of filled positions at the project as of the
    15  date the agreement is executed;
    16    (g) the types  and  value  of  other  forms  of  financial  assistance
    17  provided to the project or requested by the project applicant from other
    18  state or local government agencies or authorities; and
    19    (h)  the penalties to be imposed on the project applicant if the terms
    20  of the agreement are not met.
    21    2. The length of a financial assistance agreement shall be limited  to
    22  no  more  than  five  years;  provided however that the agreement may be
    23  renewed for up to five additional years if the authority determines that
    24  the project applicant has acted in good faith  to  meet  the  terms  and
    25  conditions of the agreement. In no event may financial assistance in the
    26  form  of  a loan or exemption from taxation be provided to a project for
    27  more than ten years.
    28    3. The financial assistance agreement shall be made available  to  the
    29  public on the website of the authority.
    30    4. The authority shall adopt a methodology to evaluate the conformance
    31  of  each  assisted  project to the terms and conditions of the financial
    32  assistance agreement. This methodology shall be made  available  to  the
    33  public on the authority's website.
    34    § 2307-c. Recapture of certain financial assistance. 1. The authority,
    35  pursuant  to the terms and conditions of its financial assistance agree-
    36  ment, may recapture financial assistance to a project from the  proceeds
    37  of  bonds issued by the authority, mortgage recording tax exemptions, or
    38  local sales or compensating  use  tax  exemptions  if  (a)  the  project
    39  violates  state  or federal tax law, labor law, environmental protection
    40  law, or contract law, or any state or federal rule or regulation  imple-
    41  menting  such law, as determined by a court of competent jurisdiction or
    42  administrative tribunal, provided that such court or tribunal  concludes
    43  that  the  violation would cause material harm to the economy or quality
    44  of life of the community; or (b) all or part of the  project's  business
    45  activity  or  workforce  is  moved  to  a location outside the community
    46  served by the authority and by doing so violates the  terms  and  condi-
    47  tions of its financial assistance agreement.
    48    2.  An  authority  which elects to initiate the recapture of financial
    49  assistance pursuant to subdivision one of section eight  hundred  fifty-
    50  nine-e  of  the  general municipal law must notify the recipient of such
    51  financial assistance in writing that it is in default of  its  financial
    52  assistance  agreement  and may direct the recipient of financial assist-
    53  ance to repay up  to  the  full  amount  of  such  financial  assistance
    54  received  as of the date of the written notice plus interest at the rate
    55  set forth in section five thousand four of the civil  practice  law  and
    56  rules.

        S. 1635                            21

     1    3.  Financial  assistance  recaptured pursuant to this section and any
     2  interest paid shall be redistributed to affected  tax  jurisdictions  in
     3  proportion  to  the  amount  of  real property tax and other taxes which
     4  would have been received by  each  affected  tax  jurisdiction  had  the
     5  project not been tax exempt. Unless otherwise agreed to in writing by an
     6  affected tax jurisdiction, the authority shall not retain any portion of
     7  such funds as an administrative or project fee.
     8    §  2307-d.  Wages  and  standards.  Whenever  a recipient of financial
     9  assistance from the authority enters into a contract, subcontract, lease
    10  or other agreement for or in connection with the  construction,  demoli-
    11  tion,  reconstruction,  rehabilitation,  repair,  or  renovation  of  an
    12  assisted project, the recipient of financial assistance shall pay  work-
    13  ers  engaged  in  such work no less than the prevailing rate of wage and
    14  supplements under article eight of the labor law.
    15    § 17. Section 2315 of the public authorities law, as amended by  chap-
    16  ter  357 of the laws of 1993, subdivision 1 as amended by chapter 386 of
    17  the laws of 2019, is amended to read as follows:
    18    § 2315. Uniform [tax exemption] financial assistance  policy.  1.  The
    19  authority  shall  [establish]  adopt a uniform [tax exemption] financial
    20  assistance policy, [with input from] subject to the approval of affected
    21  local taxing jurisdictions, which shall be applicable to  provisions  of
    22  financial  assistance  pursuant to section twenty-three hundred seven of
    23  this title and shall provide guidelines for the claiming of real proper-
    24  ty, mortgage recording, and sales tax exemptions. Such guidelines  shall
    25  include, but not be limited to: period of exemption; payments in lieu of
    26  taxes  as a percentage of [exemption]  taxes that would have been levied
    27  by or on behalf of affected tax jurisdictions if  the  project  was  not
    28  exempt  by  reason of authority involvement; types of projects for which
    29  exemptions may be claimed; procedures for payments in lieu of taxes  and
    30  instances  in  which  real  property appraisals are to be performed as a
    31  part of an application for tax exemption; in addition, the authority  in
    32  adopting  such policy shall consider such issues as: the extent to which
    33  a project will create or retain  permanent,  private  sector  jobs;  the
    34  estimated  value  of  any tax exemption to be provided; whether affected
    35  tax jurisdictions should be reimbursed by  the  project  occupant  if  a
    36  project  does  not  fulfill  the  purposes  for  which  an exemption was
    37  provided; the impact of a proposed  project  on  existing  and  proposed
    38  businesses and economic development projects in the vicinity; the amount
    39  of  private sector investment generated or likely to be generated by the
    40  proposed project; the  demonstrated  public  support  for  the  proposed
    41  project; the likelihood of accomplishing the proposed project in a time-
    42  ly fashion; the effect of the proposed project upon the environment; the
    43  extent  to which the project will utilize, to the fullest extent practi-
    44  cable and economically feasible, resource conservation, energy efficien-
    45  cy, green technologies, and alternative and renewable  energy  measures;
    46  the  extent  to which the proposed project will require the provision of
    47  additional services, including, but not  limited  to  additional  educa-
    48  tional,  transportation, police, emergency medical or fire services; and
    49  the extent to which the proposed project will provide additional sources
    50  of revenue for municipalities and school districts.  The adopted uniform
    51  financial assistance policy shall be provided  to  the  chief  executive
    52  officer and members of the governing body of each affected tax jurisdic-
    53  tion  and  shall be made available for public inspection at the authori-
    54  ty's office and on the authority's website upon its adoption.
    55    2. The authority shall [establish  a  procedure]  adopt  criteria  for
    56  deviation  from  the uniform [tax exemption] financial assistance policy

        S. 1635                            22

     1  required pursuant to this section which shall be subject to the approval
     2  of affected local tax jurisdictions.  The authority shall set  forth  in
     3  writing  the  reasons  for deviation from such policy, and shall further
     4  notify the affected local taxing jurisdictions of the proposed deviation
     5  from  such  policy  and  the  reasons  therefor not less than sixty days
     6  before such deviation from the uniform tax exemption policy  shall  take
     7  effect.
     8    §  18. Subdivision 1 of section 2976 of the public authorities law, as
     9  amended by section 1 of part C of chapter 19 of the  laws  of  2010,  is
    10  amended to read as follows:
    11    1.  Notwithstanding  any  other  law  to  the contrary, public benefit
    12  corporations (which for purposes of this section  shall  include  indus-
    13  trial  development  agencies  created  pursuant  to title one of article
    14  eighteen-A of the general municipal law or any other  provision  of  law
    15  and  the  New York city housing development corporation created pursuant
    16  to article twelve of the private housing finance law) which issue bonds,
    17  notes or other obligations and not-for-profit  corporations  that  issue
    18  bonds  on  behalf  of the state or a political subdivision thereof shall
    19  pay to the state a bond issuance charge upon the issuance of such  bonds
    20  in  an  amount  determined  pursuant to subdivision two of this section.
    21  Such charge shall be paid  to  the  state  department  of  taxation  and
    22  finance, upon forms prescribed therefor, no later than fifteen days from
    23  the end of the month within which such bonds are issued.
    24    §  19.  The  not-for-profit corporation law is amended by adding a new
    25  section 206 to read as follows:
    26  § 206. Financial assistance agreement.
    27    1. A corporation, including a local  development  corporation,  deter-
    28  mined to be a local authority pursuant to subdivision two of section two
    29  and  paragraph  (j)  of  subdivision  one  of  section six of the public
    30  authorities law that provides financial assistance to a project  in  the
    31  form  of a grant, loan, exemption from taxation, or contribution for the
    32  public purpose of relieving  or  reducing  unemployment,  promoting  and
    33  marketing  job  opportunities,  or supporting the formation, relocation,
    34  expansion, or retention of business shall enter into a written agreement
    35  with the project applicant prior to providing financial assistance.
    36    2. The agreement shall include the following information:
    37    (a) a description of the amount and type of financial assistance to be
    38  provided by the corporation, including a description and  the  value  of
    39  property conveyed at less than fair market value;
    40    (b)  a  description  of  the amount of financing to be provided by the
    41  project applicant, including the amount and type of  capital  investment
    42  to be provided;
    43    (c) the purpose of the project;
    44    (d)  the amount, types, sources and commitments of any private financ-
    45  ing;
    46    (e) the projected number of  new  full-time  and  part-time  positions
    47  expected  to  be created over the period of financial assistance, and an
    48  estimated schedule by year of when those positions will be created;
    49    (f) the number and  types  of  full-time  and  part-time  jobs  to  be
    50  retained,  and  the  number of filled positions at the project as of the
    51  date the agreement is executed;
    52    (g) the types  and  value  of  other  forms  of  financial  assistance
    53  provided to the project or requested by the project applicant from other
    54  state or local government agencies or authorities; and
    55    (h)  the penalties to be imposed on the project applicant if the terms
    56  of the agreement are not met.

        S. 1635                            23

     1    3. The length of a financial assistance agreement shall be limited  to
     2  no  more  than  five  years;  provided however that the agreement may be
     3  renewed for up to five additional years if  the  corporation  determines
     4  that the project applicant has acted in good faith to meet the terms and
     5  conditions of the agreement. In no event may financial assistance in the
     6  form  of  a loan or exemption from taxation be provided to a project for
     7  more than ten years.
     8    4. The financial assistance agreement shall be made available  to  the
     9  public on the website of the corporation.
    10    5.  The corporation shall adopt a methodology to evaluate the conform-
    11  ance of each assisted project to the terms and conditions of the  finan-
    12  cial  assistance  agreement. This methodology shall be made available to
    13  the public on the corporation's website.
    14    6. (a) The corporation, pursuant to the terms and  conditions  of  its
    15  financial  assistance agreement, may recapture financial assistance to a
    16  project from grants,  loans,  real  property  tax  exemptions,  mortgage
    17  recording  tax  exemptions,  or  local  sales  or  compensating  use tax
    18  exemptions if (i) the project violates state or federal tax  law,  labor
    19  law,  environmental  protection  law,  or  contract law, or any state or
    20  federal rule or regulation implementing such law,  as  determined  by  a
    21  court  of  competent  jurisdiction  or administrative tribunal, provided
    22  that such court or tribunal concludes that  the  violation  would  cause
    23  material  harm  to  the  economy or quality of life of the community; or
    24  (ii) all or part of the project's  business  activity  or  workforce  is
    25  moved  to a location outside the community served by the corporation and
    26  by doing so violates the terms and conditions of its  financial  assist-
    27  ance agreement.
    28    (b)  A corporation which elects to initiate the recapture of financial
    29  assistance pursuant to subdivision one of this section must  notify  the
    30  recipient  of such financial assistance in writing that it is in default
    31  of its financial assistance agreement and may direct  the  recipient  of
    32  financial  assistance  to  repay up to the full amount of such financial
    33  assistance received as of the date of the written notice  plus  interest
    34  at  the  rate set forth in section five thousand four of the civil prac-
    35  tice law and rules.
    36    (c) Financial assistance recaptured pursuant to this section  and  any
    37  interest  paid  shall  be redistributed to affected tax jurisdictions in
    38  proportion to the amount of real property  tax  and  other  taxes  which
    39  would  have  been  received  by  each  affected tax jurisdiction had the
    40  project not been tax exempt. Unless otherwise agreed to in writing by an
    41  affected tax jurisdiction, the corporation shall not retain any  portion
    42  of such funds as an administrative or project fee.
    43    7.  Wages  and standards. Whenever a recipient of financial assistance
    44  from the corporation enters into a contract, subcontract, lease or other
    45  agreement for or in connection with the construction, demolition, recon-
    46  struction, rehabilitation, repair, or renovation of an assisted project,
    47  the recipient of financial assistance shall pay workers engaged in  such
    48  work  no  less  than  the  prevailing rate of wage and supplements under
    49  article eight of the labor law.
    50    8. For the purposes of this section, "project" shall  mean  any  land,
    51  any  building or other improvement, and all real and personal properties
    52  located within the state of New York and within or outside or  partially
    53  within  and  partially  outside  the  municipality for whose benefit the
    54  agency was created, including, but not limited to, machinery,  equipment
    55  and  other facilities deemed necessary or desirable in connection there-
    56  with, or incidental thereto, whether or not now in  existence  or  under

        S. 1635                            24

     1  construction,  which  shall be suitable  for manufacturing, warehousing,
     2  research, commercial or industrial purposes or other economically  sound
     3  purposes identified and called for to implement a state designated urban
     4  cultural  park  management  plan  as  provided  in title G of the parks,
     5  recreation and historic preservation law and which may include  or  mean
     6  an  industrial pollution control facility, a recreation facility, educa-
     7  tional or cultural facility, a horse racing facility, a railroad facili-
     8  ty or an automobile racing facility, provided, however, that  no  agency
     9  shall   use  its funds or provide financial assistance in respect of any
    10  project wholly or partially outside the municipality for  whose  benefit
    11  the agency  was created without the prior consent thereto by the govern-
    12  ing  body  or  bodies of all the other municipalities in which a part or
    13  parts of the project is, or is to be, located, and such portion  of  the
    14  project  located  outside such municipality for whose benefit the agency
    15  was created shall be contiguous with the portion of the  project  inside
    16  such municipality.
    17    §  20. Paragraphs (a), (b) and (d) of section 1411 of the not-for-pro-
    18  fit corporation law, paragraph (a) as amended by chapter 847 of the laws
    19  of 1970 and paragraph (b) as amended by chapter 549 of the laws of 2013,
    20  are amended to read as follows:
    21    (a) Purposes.
    22    This section shall provide  an  additional  and  alternate  method  of
    23  incorporation  or reincorporation of not-for-profit corporations for any
    24  of the purposes set forth in this paragraph [and shall not be deemed  to
    25  alter,  impair or diminish the purposes, rights, powers or privileges of
    26  any corporation heretofore or hereafter incorporated under this  section
    27  or  under  the  stock or business corporation laws]. Corporations may be
    28  incorporated or reincorporated  under  this  section  as  not-for-profit
    29  local  development  corporations operated for the exclusively charitable
    30  or public purposes of relieving and reducing unemployment, promoting and
    31  providing for additional and maximum employment, bettering and maintain-
    32  ing job opportunities, instructing or training individuals to improve or
    33  develop  their  capabilities  for  such  jobs,  carrying  on  scientific
    34  research  for  the purpose of aiding a community or geographical area by
    35  attracting new industry to the community or area or by  encouraging  the
    36  development  of, or retention of, an industry in the community or area[,
    37  and lessening the burdens of government and acting in the public  inter-
    38  est,  and  any].  Any one or more counties, cities, towns or villages of
    39  the state, or any combination thereof, or the New York  job  development
    40  authority  in  exercising  its power under the public authorities law to
    41  encourage the organization of local development corporations, may  cause
    42  such corporations to be incorporated by public officers or private indi-
    43  viduals  or reincorporated upon compliance with the requirements of this
    44  section, and it is hereby found, determined and declared that in  carry-
    45  ing  out  said  purposes and in exercising the powers conferred by para-
    46  graph (b) of this section such corporations will be acting in the public
    47  interest and performing an essential governmental function.
    48    (b) Type of corporation.
    49    A local development corporation [is] incorporated for one or  more  of
    50  the purposes described in paragraph (a) of this section shall be a char-
    51  itable corporation under this chapter.
    52    (d)  Purchase  or lease of real property owned by a county, city, town
    53  or village.
    54    (1) The local legislative body of a county, city, town or village  or,
    55  if  there  is a board of estimate in a city, then the board of estimate,
    56  may by resolution determine that specifically  described  real  property

        S. 1635                            25

     1  owned  by  the  county, city, town or village is not required for use by
     2  such county, city, town or village and authorize the county, city,  town
     3  or  village  to  sell or lease such real property to a local development
     4  corporation incorporated or reincorporated under this article; provided,
     5  however, that title to such land be not declared inalienable as a forest
     6  preserve or a parkland.
     7    (2)  Notwithstanding  the  provisions of any general, special or local
     8  law, charter or ordinance to the contrary, no such sale or lease may  be
     9  made  without  appraisal, public notice, (except as provided in subpara-
    10  graph (4)) or public bidding [for such price or  rental  and  upon  such
    11  terms  as  may  be agreed upon between the county, city, town or village
    12  and said local development corporation]; provided, however, that in case
    13  of a lease the term may  not  exceed  ninety-nine  years  and  provided,
    14  further,  that  in cities having a population of one million or more, no
    15  such sale or lease shall be made without the approval of a  majority  of
    16  the  members  of the borough [improvement] board of the borough in which
    17  such real property is located.
    18    (3) Before any sale or lease to a local development corporation incor-
    19  porated or reincorporated under this  article  shall  be  authorized,  a
    20  public  hearing  shall be held by the local legislative body[, or by the
    21  board of estimate, as the case may be,] to consider the proposed sale or
    22  lease.
    23    (4) Notice of such hearing shall be published at least ten days before
    24  the date set for the hearing in such publication and in such  manner  as
    25  may  be designated by the local legislative body[, or the board of esti-
    26  mate as the case may be]. Such notice shall include a description of the
    27  real property proposed to be sold or leased; a statement  of  the  esti-
    28  mated  fair  market  value  of  the real property proposed to be sold or
    29  leased; the value of the financial consideration to be received  by  the
    30  county,  city, town or village from such sale or lease of the real prop-
    31  erty; and a statement of the intended use or disposition  of  such  real
    32  property by the local development corporation.
    33    (5)  A  local  development corporation, incorporated or reincorporated
    34  under this section, which purchases or leases real property from a coun-
    35  ty, city, town or village, shall not, without the  written  approval  of
    36  the  county,  city,  town  or  village,  use  such real property for any
    37  purpose except the purposes set forth in  the  certificate  of  incorpo-
    38  ration or reincorporation of said local development corporation.  In the
    39  event  such  real  property  is used in violation of the restrictions of
    40  this paragraph, the attorney-general may  bring  an  action  or  special
    41  proceeding to enjoin the unauthorized use.
    42    §  21.  Paragraphs  (e), (f), (g), (h), and (i) of section 1411 of the
    43  not-for-profit corporation law are relettered paragraphs (f), (g),  (h),
    44  (i), and (j) and a new paragraph (e) is added to read as follows:
    45    (e) Contracts with municipalities.
    46    Any  contract  or  other  agreement between a local development corpo-
    47  ration and a municipality or state authority or local authority for  one
    48  or  more  of  the  purposes  described  in paragraph (a) of this section
    49  shall: (i) cause the local development corporation to be  defined  as  a
    50  local authority pursuant to subdivision two of section two of the public
    51  authorities law; (ii) provide for the municipality or state authority or
    52  local  authority  to  receive  fair  and  adequate consideration for the
    53  services provided by the local development corporation; (iii) be subject
    54  to the requirements of article five-A of the general municipal law;  and
    55  (iv)  have  a  term  not  to  exceed  ten  years, subject to one or more
    56  renewals for a term not to exceed ten years upon the mutual  consent  of

        S. 1635                            26

     1  the  parties; provided however that a contract with a municipality shall
     2  not be used to finance the municipality's operations or  to  acquire  or
     3  improve an asset for use of the municipality.
     4    §  22. Paragraph (j) of section 1411 of the not-for-profit corporation
     5  law, as relettered by section twenty-one of this act, is amended to read
     6  as follows:
     7    (j) Effect of section.
     8    Corporations incorporated or reincorporated under this  section  shall
     9  be  organized  and  operated  exclusively  for the purposes set forth in
    10  paragraph (a), shall have, in addition to the powers otherwise conferred
    11  by law, the powers conferred by paragraph (c) of this section and  shall
    12  be subject to all the restrictions and limitations imposed by [paragraph
    13  (e)  and  paragraph  (g)]  paragraphs (c), (d), (e), (h) and (i) of this
    14  section.  In so far as the provisions of this section  are  inconsistent
    15  with the provisions of any other law, general or special, the provisions
    16  of  this section shall be controlling as to corporations incorporated or
    17  reincorporated hereunder.
    18    § 23. Federal preemption and  severability.  The  provisions  of  each
    19  section  of this act shall be deemed severable, and the declaration by a
    20  court of competent jurisdiction that any part thereof  is  preempted  or
    21  otherwise invalid shall not affect the remaining parts thereof.
    22    §  24.  This act shall take effect on the thirtieth day after it shall
    23  have become a law, or January  1,  2022,  whichever  shall  come  first;
    24  provided, however, that section fifteen of this act shall apply to bonds
    25  issued  or  re-issued  on  or  after  the  effective  date  of this act;
    26  provided, however, that the amendments to  subdivisions  19  and  20  of
    27  section  858  of the general municipal law made by section three of this
    28  act shall not affect the expiration of such subdivisions  and  shall  be
    29  deemed  to  expire  therewith;  and  provided further, however, that the
    30  amendments to subdivisions 21 and 22  of  section  858  of  the  general
    31  municipal  law  made  by  section three of this act shall not affect the
    32  repeal of such subdivisions and shall be deemed repealed therewith.
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