Bill Text: NY S01770 | 2021-2022 | General Assembly | Introduced


Bill Title: Requires the return of all or a part of the financial assistance provided for a project where the project has material shortfalls or material violations and prevents the use of funds, financial incentives, subsidies or tax exemptions for projects already in development.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2021-01-15 - REFERRED TO LOCAL GOVERNMENT [S01770 Detail]

Download: New_York-2021-S01770-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          1770

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 15, 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, in relation to requiring  the
          return  of  all  or  a part of the financial assistance provided for a
          project  where  the  project  has  material  shortfalls  or   material
          violations  and  preventing  the  use  of funds, financial incentives,
          subsidies or tax exemptions for projects already in development

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

     1    Section 1. Subdivision 11 of section 874 of the general municipal law,
     2  as added by chapter 563 of the laws of 2015, is amended and a new subdi-
     3  vision 13 is added to read as follows:
     4    (11)  Each  agency  shall  develop policies for the return of all or a
     5  part of the financial assistance provided for the project, including all
     6  or part of the amount of any tax exemptions, as specified in the policy,
     7  which may include but shall not be limited to material shortfalls in job
     8  creation and retention projections or material violations of  the  terms
     9  and  conditions  of  project agreements. The agency shall implement such
    10  policies created in accordance with this subdivision to  return  all  or
    11  part  of  the  financial  assistance  provided for any project where the
    12  agency's annual assessment of a project shows material shortfalls in job
    13  creation and retention projections or material violations of  the  terms
    14  and  conditions  of project agreements.  If such material shortfalls are
    15  the direct result of factors beyond the  agency's  control,  the  agency
    16  must  notify the authority's budget office in writing of the waiver with
    17  a comprehensive explanation. All such returned amounts of tax exemptions
    18  shall be redistributed to the  appropriate  affected  tax  jurisdiction,
    19  unless agreed to otherwise by any local taxing jurisdiction.
    20    (13)  Except where environmental contamination requiring a significant
    21  increase in project costs is discovered during the  development  of  the
    22  project  or  where  a  municipality  has  reassessed  all or part of the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01832-01-1

        S. 1770                             2

     1  project site resulting in an increase in property  taxes  of  more  than
     2  fifty  percent, no tax exemptions shall be granted to any project if the
     3  project is already in development at the time such project  applies  for
     4  the issuance of the tax exemption.
     5    §  2.  Section 854 of the general municipal law is amended by adding a
     6  new subdivision 21 to read as follows:
     7    (21) "In  development"  -  shall  mean  a  project  for  which  active
     8  construction,  including but not limited to erection of building founda-
     9  tions or structure, has already commenced.
    10    § 3. Section 862 of the general municipal law is amended by  adding  a
    11  new subdivision 3 to read as follows:
    12    (3)  Except  where environmental contamination requiring a significant
    13  increase in project costs is discovered during the  development  of  the
    14  project  or  where  a  municipality  has  reassessed  all or part of the
    15  project site resulting in an increase in property  taxes  of  more  than
    16  fifty percent, no funds, financial incentives or subsidies of the agency
    17  shall  be used in respect of any project which is already in development
    18  at the time such project applies for such funds,  financial  assistance,
    19  incentives or subsidies.
    20    §  4.  Paragraphs (h) and (i) of subdivision 4 of section 859-a of the
    21  general municipal law, as added by chapter 563 of the laws of 2015,  are
    22  amended and a new paragraph (j) is added to read as follows:
    23    (h)  a statement that the owner, occupant or operator receiving finan-
    24  cial assistance is in  substantial  compliance  with  applicable  local,
    25  state  and  federal tax, worker protection and environmental laws, rules
    26  and regulations; [and]
    27    (i) a statement acknowledging that the  submission  of  any  knowingly
    28  false  or  knowingly  misleading  information  may lead to the immediate
    29  termination of any financial assistance  and  the  reimbursement  of  an
    30  amount  equal  to all or part of any tax exemptions claimed by reason of
    31  agency involvement in the project[.]; and
    32    (j) a statement requiring that if a project applicant has received  an
    33  offer  of  financial assistance from an economic development corporation
    34  or corporations located outside of the state that such project applicant
    35  disclose and provide such offer.
    36    § 5. This act shall take effect immediately.
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