NY State Senate Bill 2013-S7785

Senate Bill S7785

2013-2014 Legislative Session

Requires signatures of mayors of the villages of Hempstead and Freeport for payments in lieu of taxes from town of Hempstead and Nassau IDA's

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 09, 2014	referred to rules

2013-S7785 (ACTIVE) - Details

See Assembly Version of this Bill:: A8097
Current Committee:: Senate Rules
Law Section:: General Municipal Law
Laws Affected:: Amd §§905 & 922, Gen Muni L

2013-S7785 (ACTIVE) - Summary

Requires signatures of chief executives of the villages of Hempstead and Freeport for payments in lieu of taxes prior to the grant of application or the effectiveness of any such grant for a payment for projects approved by the Nassau county industrial development agency and the town of Hempstead industrial development agency.

2013-S7785 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7785

TITLE OF BILL:  An act to amend the general municipal law, in relation
to payments in lieu of taxes for projects approved by the town of Hemp-
stead industrial development agency and the Nassau county industrial
agency

PURPOSE OR GENERAL IDEA OF BILL:

To require the chief executive officer and governing body of the village
of Hempstead and the village of Freeport to have a consultation and
participation role in pilot in lieu of taxes (PILOT) agreements that
impact such villages which are approved by Industrial Development Agen-
cies (IDA), and to provide additional audit and review oversight over
PILOT agreements impacting such villages.

SUMMARY OF SPECIFIC PROVISIONS:

Section one requires that: prior to PILOT agreements being approved by
the town of Hempstead IDA (the agency) related to projects located in
the villages of Hempstead and Freeport, the chief executive officers and
governing bodies of such villages be consulted, respectively; the agency
obtain an impact analysis to determine the respective impact of the
PILOT on the villages of the project and the planned PILOT agreement;
the project applicant bear the cost related to the impact study; the
agency and the respective village's governing body shall jointly select

a qualified entity to conduct the impact analysis; the agency's member-
ship shall include at least one member of the respective village's
governing body and at least three at large, members from a cross section
of the respective community; the agency review any PILOT agreement after
the third year and every third year thereafter, and adjust the PILOT
agreement accordingly based on changes, to the assessed value and tax
rate of all other real properties; the agency provide a written report
to the village of Freeport or the village of Hempstead documenting any
and all variances or changes to the projected revenues of any PILOT
agreement; PILOT agreements for a project not be renewed or renegotiated
until a full audit has been completed of the accounts of the party obli-
gated to make payments in lieu of taxes; and that the village of Free-
port or the village of Hempstead may request from the State Comp-
troller's office a full audit or review of such full audit prior to the
renewal or renegotiation of a PILOT agreement for a project located in
such respective village.

Section two contains the same requirements as section one, but as
related to PILOT agreements approved by the Nassau County DA in the
villages of Hempstead and Freeport.

Section three provides for the immediate effective date.

JUSTIFICATION:

PILOT agreements impact the property taxes of the municipality where
such agreements are in place, but often the municipality impacted has no
say in the PILOT agreement because it has no representation or control
over the IDA approving such agreements. This bill would address such a
concern in the villages of Hempstead and Freeport. By requiring consul-
tation with the respective chief executive officers and governing bodies
of the villages, and by requiring additional impact analysis and audits
of PILOT agreements, the taxpayers of these villages will have a greater
opportunity to ensure that any PILOT agreement related to their property
taxes are being carefully considered and monitored.

PRIOR LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

None to the State.

EFFECTIVE DATE:

This act shall take effect immediately.

2013-S7785 (ACTIVE) - Bill Text download pdf

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

                                  7785

                            I N  S E N A T E

                              June 9, 2014
                               ___________

Introduced  by COMMITTEE ON RULES -- read twice and ordered printed, and
  when printed to be committed to the Committee on Rules

AN ACT to amend the general municipal law, in relation  to  payments  in
  lieu  of  taxes  for projects approved by the town of Hempstead indus-
  trial development agency and the Nassau county industrial agency

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

  Section 1. The opening paragraph of section 905 of the general munici-
pal  law is designated subdivision 1 and three new subdivisions 2, 3 and
4 are added to read as follows:
  2. PRIOR TO THE APPROVAL OF ANY APPLICATION FOR A PAYMENT IN  LIEU  OF
TAXES  (HEREINAFTER REFERRED TO IN THIS SECTION AS "PILOT") AGREEMENT BY
THE AGENCY FOR A PROJECT LOCATED IN  THE  VILLAGE  OF  FREEPORT  OR  THE
VILLAGE  OF  HEMPSTEAD,  THE  CHIEF  EXECUTIVE  OFFICER  OF THE AFFECTED
VILLAGE SHALL BE CONSULTED.   THE AGENCY SHALL  ALSO  CONSULT  WITH  THE
VILLAGE  GOVERNING  BODY  PRIOR TO ANY PILOT AGREEMENT BEING APPROVED BY
THE AGENCY FOR A PROJECT LOCATED IN  THE  VILLAGE  OF  FREEPORT  OR  THE
VILLAGE  OF  HEMPSTEAD.  IN  ADDITION, THE AGENCY SHALL OBTAIN AN IMPACT
ANALYSIS TO DETERMINE THE IMPACT ON THE VILLAGE OF THE PROJECT  AND  THE
PLANNED  PILOT  AGREEMENT.  THE APPLICANT FOR SUCH PILOT AGREEMENT SHALL
BEAR THE COSTS RELATED TO THE REQUIRED IMPACT ANALYSIS. THE  AGENCY  AND
THE  VILLAGE  GOVERNING  BODY SHALL JOINTLY SELECT A QUALIFIED ENTITY TO
CONDUCT THE IMPACT ANALYSIS. THE MEMBERSHIP OF THE AGENCY, WHEN  REVIEW-
ING  APPLICATIONS AND APPROVING PILOT AGREEMENTS FOR PROJECTS LOCATED IN
THE VILLAGE OF FREEPORT OR THE VILLAGE OF HEMPSTEAD,  SHALL  INCLUDE  AT
LEAST  ONE MEMBER OF SUCH VILLAGE'S GOVERNING BODY AND AT LEAST THREE AT
LARGE MEMBERS DRAWN FROM A CROSS SECTION OF THE VILLAGE COMMUNITY.
  3. THE AGENCY SHALL REVIEW ANY PILOT AGREEMENT FOR A  PROJECT  LOCATED
IN  THE  VILLAGE OF FREEPORT OR THE VILLAGE OF HEMPSTEAD AFTER THE THIRD
YEAR OF ENTERING INTO SUCH PILOT AGREEMENT, AND EVERY THIRD YEAR  THERE-
AFTER,  AND  ADJUST  THE PILOT AGREEMENT ACCORDINGLY BASED ON CHANGES TO
THE ASSESSED VALUE AND TAX RATE OF ALL OTHER REAL PROPERTIES LOCATED  IN
SUCH VILLAGES.  THE AGENCY SHALL PROVIDE A WRITTEN REPORT TO THE VILLAGE
OF  FREEPORT  AND THE VILLAGE OF HEMPSTEAD DOCUMENTING ANY AND ALL VARI-

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

                                                           LBD05704-02-3

S. 7785                             2

ANCES OR CHANGES TO THE PROJECTED REVENUES OF  SUCH  VILLAGES  FROM  ANY
SUCH PILOT AGREEMENT.
  4.  A PILOT AGREEMENT FOR A PROJECT LOCATED IN THE VILLAGE OF FREEPORT
OR THE VILLAGE OF HEMPSTEAD SHALL NOT BE RENEWED OR RENEGOTIATED UNTIL A
FULL AUDIT HAS BEEN COMPLETED OF THE ACCOUNTS OF THE PARTY OBLIGATED  TO
MAKE  PAYMENTS IN LIEU OF TAXES PURSUANT TO THE PILOT AGREEMENT WITH THE
AGENCY. THE AGENCY AND THE VILLAGE GOVERNING BODY SHALL JOINTLY CHOOSE A
QUALIFIED ENTITY TO CONDUCT SUCH AUDIT.  THE PARTY THAT IS OBLIGATED  TO
MAKE  PAYMENTS IN LIEU OF TAXES PURSUANT TO THE PILOT AGREEMENT WITH THE
AGENCY SHALL BEAR THE COSTS OF PREPARING  SUCH  AUDIT.  THE  VILLAGE  OF
FREEPORT  OR THE VILLAGE OF HEMPSTEAD MAY REQUEST FROM THE OFFICE OF THE
STATE COMPTROLLER AN AUDIT OR REVIEW OF THE AUDIT PRIOR TO  THE  RENEWAL
OR  RENEGOTIATION  OF  A  PILOT  AGREEMENT  FOR A PROJECT LOCATED IN THE
VILLAGE OF FREEPORT OR THE VILLAGE OF HEMPSTEAD.
  S 2. The opening paragraph of section 922  of  the  general  municipal
law, as amended by chapter 474 of the laws of 1988, is designated subdi-
vision  1  and  three  new  subdivisions 2, 3 and 4 are added to read as
follows:
  2. PRIOR TO THE APPROVAL OF ANY APPLICATION FOR A PAYMENT IN  LIEU  OF
TAXES  (HEREINAFTER REFERRED TO IN THIS SECTION AS "PILOT") AGREEMENT BY
THE AGENCY FOR A PROJECT LOCATED IN  THE  VILLAGE  OF  FREEPORT  OR  THE
VILLAGE  OF  HEMPSTEAD,  THE  CHIEF  EXECUTIVE  OFFICER  OF THE AFFECTED
VILLAGE SHALL BE CONSULTED.   THE AGENCY SHALL  ALSO  CONSULT  WITH  THE
VILLAGE  GOVERNING  BODY  PRIOR TO ANY PILOT AGREEMENT BEING APPROVED BY
THE AGENCY FOR A PROJECT LOCATED IN  THE  VILLAGE  OF  FREEPORT  OR  THE
VILLAGE  OF  HEMPSTEAD.  IN  ADDITION, THE AGENCY SHALL OBTAIN AN IMPACT
ANALYSIS TO DETERMINE THE IMPACT ON THE VILLAGE OF THE PROJECT  AND  THE
PLANNED  PILOT  AGREEMENT.  THE APPLICANT FOR SUCH PILOT AGREEMENT SHALL
BEAR THE COSTS RELATED TO THE REQUIRED IMPACT ANALYSIS. THE  AGENCY  AND
THE  VILLAGE  GOVERNING  BODY SHALL JOINTLY SELECT A QUALIFIED ENTITY TO
CONDUCT THE IMPACT ANALYSIS. THE MEMBERSHIP OF THE AGENCY, WHEN  REVIEW-
ING  APPLICATIONS AND APPROVING PILOT AGREEMENTS FOR PROJECTS LOCATED IN
THE VILLAGE OF FREEPORT OR THE VILLAGE OF HEMPSTEAD,  SHALL  INCLUDE  AT
LEAST  ONE MEMBER OF SUCH VILLAGE'S GOVERNING BODY AND AT LEAST THREE AT
LARGE MEMBERS DRAWN FROM A CROSS SECTION OF THE VILLAGE COMMUNITY.
  3. THE AGENCY SHALL REVIEW ANY PILOT AGREEMENT FOR A  PROJECT  LOCATED
IN  THE  VILLAGE OF FREEPORT OR THE VILLAGE OF HEMPSTEAD AFTER THE THIRD
YEAR OF ENTERING INTO SUCH PILOT AGREEMENT, AND EVERY THIRD YEAR  THERE-
AFTER,  AND  ADJUST  THE PILOT AGREEMENT ACCORDINGLY BASED ON CHANGES TO
THE ASSESSED VALUE AND TAX RATE OF ALL OTHER REAL PROPERTIES LOCATED  IN
SUCH VILLAGES.
  4.  A PILOT AGREEMENT FOR A PROJECT LOCATED IN THE VILLAGE OF FREEPORT
OR THE VILLAGE OF HEMPSTEAD SHALL NOT BE RENEWED OR RENEGOTIATED UNTIL A
FULL AUDIT HAS BEEN COMPLETED OF THE ACCOUNTS OF THE PARTY OBLIGATED  TO
MAKE  PAYMENTS IN LIEU OF TAXES PURSUANT TO THE PILOT AGREEMENT WITH THE
AGENCY. THE AGENCY AND THE VILLAGE GOVERNING BODY SHALL JOINTLY CHOOSE A
QUALIFIED ENTITY TO CONDUCT SUCH AUDIT.  THE PARTY THAT IS OBLIGATED  TO
MAKE  PAYMENTS IN LIEU OF TAXES PURSUANT TO THE PILOT AGREEMENT WITH THE
AGENCY SHALL BEAR THE COSTS OF PREPARING  SUCH  AUDIT.  THE  VILLAGE  OF
FREEPORT  OR THE VILLAGE OF HEMPSTEAD MAY REQUEST FROM THE OFFICE OF THE
STATE COMPTROLLER AN AUDIT OR REVIEW OF THE AUDIT PRIOR TO  THE  RENEWAL
OR  RENEGOTIATION  OF  A  PILOT  AGREEMENT  FOR A PROJECT LOCATED IN THE
VILLAGE OF FREEPORT OR THE VILLAGE OF HEMPSTEAD.
  S 3. This act shall take effect immediately.

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