senate Bill S7329

Relates to extending the date of the application and approval process for the economic transformation and facility redevelopment program

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 13 / May / 2014
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 28 / May / 2014
    • 1ST REPORT CAL.965
  • 29 / May / 2014
    • 2ND REPORT CAL.
  • 02 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 11 / Jun / 2014
    • PASSED SENATE
  • 11 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 11 / Jun / 2014
    • REFERRED TO ECONOMIC DEVELOPMENT

Summary

Relates to extending the date of the application and approval process for the economic transformation and facility redevelopment program.

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Bill Details

Versions:
S7329
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Economic Development Law
Laws Affected:
Amd ยง402, Ec Dev L

Sponsor Memo

BILL NUMBER:S7329

TITLE OF BILL: An act to amend the economic development law, in
relation to extending the date of the application and approval process
for the economic transformation and facility redevelopment program

PURPOSE: To honor the State's commitment to help local communities
affected by the 2011 closure of correctional facilities and juvenile
justice facilities by allowing a meaningful opportunity to utilize the
tax credit program which offers incentives for job creation and local
investment.

SUMMARY OF PROVISIONS: Amends Section 402(1) of the Economic
Development Law to extend the deadline by which a business entity must
apply for tax credits for locations within an Economic Transformation
Area for a recently closed correctional facility or juvenile justice
facility. The current deadline of January 1, 2015 would be extended to
January 1, 2018.

JUSTIFICATION: In 2011, several correctional facilities and juvenile
justice facilities throughout the state were closed. As part of the
2011 State Budget, the Governor and Legislature agreed to measures to
try to ameliorate the impact of the closures and promote economic
development in these vulnerable communities.

Part V of Chapter 61 of the Laws of 2011 added Article 18 to the
Economic Development Law, entitled the Economic Transformation and
Facility Redevelopment Program. This legislation offered tax benefits
for the redevelopment of the closed facilities and the economic
transformation of the surrounding communities.

However, the 2011 law set a deadline by which new businesses which
locate within a designated economic transformation area must apply for
participation in the tax credit program. The deadline is the later of
three years after the facility's closure or January 1, 2015.

Unfortunately, given economic conditions and delays in converting
facilities, it is taking longer than anticipated in some communities
to begin the redevelopment process. For example, one county is
planning to convert a closed juvenile justice facility into a
technology park and business incubator. However, it took until January
2014 before the property was legally transferred from the State to the
county. Only then could the county begin to undertake the necessary
infrastructure work to convert the site into a business park. Because
of these delays, the tax credit program will be on the verge of
expiring by the time the community is ready to start marketing the
site.

These communities were promised assistance to help them recover from
the loss of state facilities and needed local jobs. It is important to
provide these communities with a realistic and meaningful opportunity
to actually utilize these programs. This bill would extend the period
of time in which eligible businesses may apply for tax credits.

FISCAL IMPLICATIONS: This bill simply extends the availability of the
tax credit program, and does not change any of the other parameters of
the program. The State has spent far less than anticipated over the


past few years because of the delays and under-utilization of the
program.

EFFECTIVE DATE: Immediately

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7329

                            I N  S E N A T E

                              May 13, 2014
                               ___________

Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Commerce, Economic  Devel-
  opment and Small Business

AN  ACT  to amend the economic development law, in relation to extending
  the date of the application and  approval  process  for  the  economic
  transformation and facility redevelopment program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 402 of  the  economic  development
law,  as added by section 2 of part V of chapter 61 of the laws of 2011,
is amended to read as follows:
  1. A business entity must submit a completed application as prescribed
by the commissioner by the later of (a) the date  that  is  three  years
after  the  date  of  the  closure of the closed facility located in the
economic transformation area in which the business entity would  operate
or (b) January first, two thousand [fifteen] EIGHTEEN.
  S  2.  This act shall take effect immediately; provided, however, that
the amendments to section 402 of article 18 of the economic  development
law  made by section one of this act shall not affect the repeal of such
article and shall be deemed to be repealed therewith.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15045-01-4

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