Provides for accountability and efficiency of industrial development agencies
download bill text pdf| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| May 17, 2010 |
referred to local governments |
Requires industrial development agencies to prepare annual report cards for each tax exempt project financed by the agency; provides for a standard application form to be used by industrial development agencies to accept requests for financial assistance; relates to payments in lieu of taxes.
BILL NUMBER:A11107
TITLE OF BILL: An act to amend the general municipal law and the public
authorities law, in relation to the accountability and efficiency of
industrial development agencies and authorities
PURPOSE: To increase the accountability and improve the efficiency and
transparency of the operations of industrial development agencies and
authorities (IDAs), by requiring standard application forms for requests
for financial assistance, provide for the preparation, filing and publi-
cation of an annual summary and assessment of financial activities and
operations for the prior fiscal year to be known as a "report card" and
for a penalty for the failure to file such report cards, and requiring
uniform criteria for the evaluation and selection of projects for which
financial assistance is provided. The bill would also provide proce-
dures for merger and consolidation of IDAs located within the same coun-
ty.
SUMMARY OF PROVISIONS: Preparation and filing of "report cards" -
Section 1 of this bill would amend Section 859 of the General Municipal
Law by adding three new Subdivisions 4, 5 and 6 that require IDAs to
prepare an annual "report card" containing a summary and assessment of
financial activities and, operations for the prior fiscal year of the
agency. The IDA would be required to prepare the report card within
ninety days following the close of each fiscal year and to include
information for each project for which exemptions from taxation were
claimed during the preceding fiscal year as a result of the agency having title, possession or control (by lease, license or otherwise) of the property or equipment of the project occupant, or which was financed, in whole or in part, by the proceeds of outstanding bonds or notes issued by the agency. The bill would require that the report card include, for each project, among other things, a description of the project, the total projected capital cost of the project, the total number of jobs for the project, the total projected amount of tax exemptions for the project, a. schedule of any payments in lieu of taxes (PILOTs), including amounts outstanding, and an assessment of the esti- mated economic impact of the project. IDAs would also be required to assess the economic impact of projects completed during the prior fiscal year. Specifically, for every completed project, the report card would be required to contain, if applicable, the actual final project cost, total amount of tax exemptions actually provided and total PILOTs paid over the life of the project, and an evaluation of whether job creation/retention goals were met. Additionally, Section 1 of this bill would require that, within thirty days of completion, a copy of the report card be filed with the govern- ing body of the municipality for whose benefit the agency was created, the State Comptroller and the Department of Economic Development, at the same time and together with the audited financial statement required by Subdivision 1 of Section 859 of the General Municipal Law. Also, the IDA would be required to make the report card publicly available by trans- mitting it to local newspapers of general circulation within the munici- pality and by posting it on the websites, if any, of the IDA and the municipality for whose benefit the IDA was created. Further, this Section would provide that if an agency fails to file or make publicly available a report card and continues to so fail for a period of 120 days after the day on which the report card is required to be filed and made public, the agency would be prohibited from offering financial assistance which provides exemptions from State taxes until the report card is filed. Public hearings - Section 2 of this bill amends Section 859-a of the General Municipal Law to require that any public hearing required under that section be held before a quorum of members of the IDA and that no final determination on a project or the financial assistance being contemplated by the agency be made until at least thirty days after the public hearing. It would also add back into Section 859-a provisions that had sunset on January 31, 2008, requiring at least ten days notice of the hearing, describing information that must be in the notice and requiring that notice be given to the chief executive officer of each taxiing jurisdiction. Standard application form - Section 2 of this bill would also add a new Subdivision 4 to Section 859-a of the General Municipal Law to require the Department of Economic Development, in consultation with the State Comptroller, to develop a standard application form for requests for financial assistance from IDAs. The form, which would be certified by or on behalf of the applicant, would be required unless a waiver is granted by the Department of Economic Development. The amendment would require that the form contain various information, including the name and address of the. applicant, a description of the proposed project, the amount and type of financial assistance requested, the total projected capital cost of the project, a statement of the projected terms and conditions of any proposed financing, the projected number of full time equivalent jobs that would be retained or created if the request for financial assistance is granted and certain other information relating to such jobs. The IDA or the Department of Economic Development could require additional information, including supporting documents and information provided by or on behalf of the applicant. Uniform evaluation criteria - Additionally, Section 2 of this bill would also add a new Subdivision 5 to Section 859-a of the General Municipal Law to require each IDA to develop uniform criteria for the evaluation and selection of projects for which financial assistance would be provided. At minimum, prior to the approval of the provision of any financial assistance, the IDA would be required to conduct certain reviews and make certain determinations. Among other things, a standard- ized, written cost-benefit analysis would be required, as well as a determination that employment projections are reasonable and the devel- opment of benchmarks to evaluate whether the project has met projected goals and targets, including those related to job creation and retention. Uniform project agreement - A new subdivision 6 of Section 859-a of the General Municipal Law is added by Section 2 of this bill to require the Department of Economic Development, in consultation with the State Comp- troller, to develop a uniform IDA project agreement, that would set forth the terms and conditions under which financial assistance would be provided. The uniform agreement would be required to be used, unless a waiver for good cause shown is granted by the Department of Economic Development. The agreement would be required to contain certain provisions, including: a description of the project and financial assistance; a requirement for an annual certification by the project occupant of jobs created and retained and payments in lieu of taxes made; a schedule for PILOTs; a requirement that payroll documents and other books and records necessary to confirm job and salary information be retained and made accessible to the IDA and any individual or enti- ties auditing the IDA; a provision for the discontinuance of financial assistance or a modification of PILOT agreements in the event of a mate- rial violation of the terms and conditions of the agreement; a provision for the return of financial assistance in the event of material short- falls from job creation and retention projections; and in the case of a "speculation" building, a provision for the phasing-in of benefits based on the amount of space occupied. Various appendices would also be included, such as a record of the public hearing. Investigations of complaints - This bill adds a new Subdivision 7 to Section 859-a of the General Municipal Law, also added by Section 2 of this bill, which requires the Department of Economic Development to conduct investigations of material complaints concerning possible violations of a project agreement. Restrictions on funds of IDAs - Section 3 of this bill adds back into Section 862 of the General Municipal Law provisions of law that had sunset. The new Subdivision 2 of this Section provides that except as otherwise provided, no financial assistance of the IDA shall be provided in respect of any project where facilities or property that are primari- ly used in making retail sales to customers who personally visit such facilities constitutes more than one-third of the total project cost. The new Subdivision 3 of Section 862 of the General Municipal Law, as also added by Section 3 of this bill, establishes no funds of an IDA shall be used for the purpose of preventing the establishment of an industrial or manufacturing plant, nor shall any funds of the IDA be given to any group or organization which is attempting to prevent the establishment of an industrial or manufacturing plant nor shall such funds be used for advertising or promotional materials which depict elected or appointed government officials in either print or electronic media. Uniform PILOT Agreement Policy - Section 4 of this bill would amend Subdivision 4 of Section 874 of the General Municipal Law to rename the Uniform Tax Exemption Policy as the Uniform PILOT Agreement Policy, and would require the policy to include payments in lieu of taxes, as a percentage of taxes that would have been levied by or on behalf of affected tax jurisdictions if the project was not tax exempt by reason of agency involvement, rather than the percentage of exemption. This Section also adds back into the law language that had sunset. Such language relates to notice to affected tax jurisdiction for deviation from the Uniform PILOT Agreement Policy. Designation of agents - Section 5 of this bill adds a new Subdivision 9 to Section 874 of the General Municipal Law. This Subdivision was previ- ously in law and sunset. Such Subdivision relates to the designation of a project operator or other person to act as an agent of an IDA. Dissolution and merger - Section 6 of this bill would add a new Section 885 to the General Municipal to authorize and set forth procedures for the dissolution of a town, village or city IDA and the merger of such dissolved IDA into the IDA of the county in which the town, village or city is located. The dissolution and merger would be pursuant to a plan that states, among other things, the underlying purpose and the terms and conditions of the proposed dissolution and merger. Upon the effec- tive date of the dissolution and merger, the town, village or city IDA would cease to exist and all rights, titles, interests; obligations arid liabilities of those IDAs would be vested in the county IDA. The Commis- sioner of the Department of Economic Development would be required to undertake a study to identify those IDAs that have not undertaken significant activity within the prior five years and recommend that they be dissolved and merged into the county IDA. The study would be under- taken by July 1, 2011, and the Commissioner's findings reported to the Speaker of the Assembly, the Temporary President of the Senate, the Governor, and the State Comptroller and to each IDA identified in the report, by December 31, 2011. Troy and Auburn IDAs- Sections 7 through 10 of this bill would make conforming amendments to Sections 1953-a, 1963-a, 2307 and 2315 of the Public Authorities Law, relating to the Cities of Troy and Auburn IDAs. Effective date - Section 11 would make the act effective immediately. JUSTIFICATION: IDAs are public benefit corporations, created by special act of the State Legislature for the benefit of municipalities, to provide "financial assistance" to private entities, as an inducement to the private entity to relocate, expand or remain in the municipality. IDAs are governed by Article 18-A of the General Municipal Law, which states that the purposes of IDAs are to promote, develop, encourage and assist in the acquiring, constructing, reconstructing, improving, main- taining, equipping and furnishing industrial, manufacturing, warehous- ing, commercial, research and recreation and certain other listed facil- ities, and thereby advance job opportunities health, general prosperity and economic welfare of the people of the State of New York and to improve their recreation opportunities, prosperity and standard of living. The "financial assistance" provided by an IDA generally takes the form of favorable interest rate financing through the use of the proceeds of IDA bonds or notes to fund construction or acquisition costs, and/or, since the property and activities of IDAs are tax exempt, the "pass through" of the benefits of certain tax exemptions (real property, sales, mortgage recording taxes) to the private entity. The "pass through" can be in addition to bond financing, or done separately through what is known as a "straight lease" transaction. Because of the tax exemption pass-through, the local governments that would usually receive tax revenues as a result of the project (known as the "affected tax jurisdictions") will not receive such monies due to the IDA status of the project. This loss of revenue can be mitigated if the IDA enters into what is known as a "payment in lieu of tax" or "PILOT" agreement with the private entity, under which the private entity agrees to pay all or a portion of the amounts that would otherwise be due as taxes had the project not been an IDA project. Because of reform legislation enacted in 1993 (Chapter 356), IDAs are now required to have budgets, conduct public hearings before providing financial assistance for' most projects and have "uniform tax exemption policies". In addition, IDAs can lose their authority to offer financial assistance in the form of State tax exemptions if they fail to file the required annual audited financial statement. Also, the Public Authori- ties Accountability Act of 2005 (Chapter 766) added requirements for governance, reporting, auditing and property disposition that will enhance IDA accountability. While these changes have been positive steps toward making IDAs more accountable to the municipalities and taxpayers for whose benefit they are created, there remain areas where improve- ments are necessary, especially in light of the critical role IDAs often play in the economic well-being of a community and the potential costs in lost tax revenues. This bill would provide for additional safeguards to help ensure that the process used by IDAs in determining to provide financial assistance is transparent, uniform, and deliberative and furthers the underlying purposes of the statutes governing IDAs. Current law does not spell out an orderly procedure by which an individual or entity may request finan- cial assistance from an IDA, or by which an IDA grants such assistance or monitors projects after assistance if provided. Instead, audits conducted by OSC staff indicate that the process is too often ad hoc and inconsistent from IDA to IDA, and even from project to project within an individual IDA. This bill would require standard application forms for those requesting IDA financial assistance and would require IDAs to develop uniform criteria for assessing applications. Pursuant to these new requirements, the types of information IDAs would receive for each project would be more standardized and the process used to assess each application should be consistent and thorough. This should lead to a more uniform and tran- sparent process, more informed decision-making by IDAs and increased confidence by taxpayers that decisions to provide financial assistance are reasoned and in furtherance of the underlying purposes of IDAs, including the creation and retention of jobs within the municipality for whose benefit the IDA was created. Further, to assure that decisions by the IDA are made with the full benefit of public input, the current public hearing requirement would be amended to require that at least a quorum of the IDA board be present at the hearing and that no final determination on the project or the financial assistance being contem- plated by the agency be made until at least thirty days after the public hearing. Also, each IDA project would be undertaken in accordance with a standard project agreement that would set forth the terms and conditions of the assistance and provide mechanisms to help ensure that the IDA can moni- tor the progress of the projects, including whether jobs created or retained as a result of the project meet initial projections. Further, the bill would require each IDA to prepare, file and publicize an annual "report card" containing a summary of financial activities for the prior fiscal year. Much of the information to be included in the report card is already developed by IDAs in order to comply with the reporting requirements of General Municipal Law § 859 and/or Public Authorities Law § 2800 and, therefore, it should not be unduly burdensome for IDAs to prepare this annual "report card." Moreover, by compiling this infor- mation in a single, comprehensive annual document, local taxpayers will be able to access this material concerning their IDA's performance at a single location. IDAs will be more accountable to the public and their sponsoring municipalities, who will be able to better monitor and assess the activities of their IDAs. To ensure compliance with this new requirement, the bill would prohibit IDAs that are delinquent in comply- ing with the report card requirement from offering financial assistance which provides exemptions from State taxes until the requirement is met. There are currently 114 active IDAs throughout the State. In many cases, IDAs for towns, villages or cities have served only limited purposes, sometimes created for the purpose of financing only a single project. Often, these IDAs are effectively dormant; yet do not meet the statutory requirements for dissolution. This bill would provide the necessary authority for a voluntary, administrative process whereby such an IDA could be dissolved and merged into the IDA for the county in which the town, village or city is located. The bill would make provision for the orderly transition from the town, village or city IDA into the county IDA, including ensuring that bonds and other obligations and liabilities of the dissolved IDA will be properly addressed. Finally, the bill would change the name of the policy required by Section 874 of the General Municipal Law from the "Uniform Tax Exemption Policy", to the more descriptive "Uniform Payment in Lieu of Tax (PILOT) Policy". The current name has caused some confusion by implying that the primary purpose of the policy is to address the granting of tax exemptions. In fact, tax exemptions largely are made applicable by oper- ation of law (see General Municipal Law §874). The policy, instead, is focused on PILOTs. The bill would make the title more closely aligned with the purpose, and would correspondingly clarify that the guidelines in the policy must include a statement of the payments in lieu of taxes, as a percentage of taxes that would have been levied by or on behalf of affected tax jurisdictions if the project was not tax exempt by reason of agency involvement, rather than the current requirement for "percent- age of exemption". We have found that in many financial statements submitted to the Comptroller by IDAs, which call for the amount of tax exemptions for IDA projects, IDAs report the exemptions, less the amount of PILOTs, incorrectly characterizing PILOTs as if they were actual tax payments, rather than "in lieu of " payments. T his change should help clarify the distinction between taxes themselves and PILOTs, and serve to enhance more accurate reporting and lessen confusion. We believe this bill will greatly increase the accountability of IDAs to the taxpayers and municipalities for whose benefit they are created. It will serve to ensure a greater degree of uniformity in the application process for IDA assistance, more careful analysis and deliberation in the decision-making process and enhanced monitoring once IDA benefits are conferred. The Comptroller urges the passage of this legislation.
S T A T E O F N E W Y O R K
________________________________________________________________________
11107
I N A S S E M B L Y
May 17, 2010
___________
Introduced by M. of A. HOYT -- (at request of the State Comptroller) --
read once and referred to the Committee on Local Governments
AN ACT to amend the general municipal law and the public authorities
law, in relation to the accountability and efficiency of industrial
development agencies and authorities
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 859 of the general municipal law is amended by
adding three new subdivisions 4, 5 and 6 to read as follows:
4. (A) FOR PURPOSES OF THIS SECTION, THE TERM "REPORT CARD" SHALL MEAN
THE ANNUAL SUMMARY AND ASSESSMENT OF FINANCIAL ACTIVITIES AND OPERATIONS
FOR THE PRIOR FISCAL YEAR OF THE AGENCY AS PRESCRIBED IN THIS SUBDIVI-
SION.
(B) WITHIN NINETY DAYS FOLLOWING THE CLOSE OF EACH FISCAL YEAR, EACH
AGENCY SHALL PREPARE A REPORT CARD, IN SUCH FORM AS MAY BE PRESCRIBED BY
THE STATE COMPTROLLER, IN THE EXERCISE OF HIS OR HER DISCRETION. THE
REPORT CARD SHALL CONTAIN INFORMATION FOR EACH PROJECT FOR WHICH
EXEMPTIONS FROM TAXATION WERE CLAIMED DURING THE PRECEDING FISCAL YEAR
AS A RESULT OF THE AGENCY HAVING TITLE, POSSESSION OR CONTROL (BY LEASE,
LICENSE OR OTHERWISE) OF THE PROPERTY OR EQUIPMENT OF THE PROJECT OCCU-
PANT, OR WHICH WAS FINANCED, IN WHOLE OR IN PART, BY THE PROCEEDS OF
OUTSTANDING BONDS OR NOTES ISSUED BY THE AGENCY. THE REPORT CARD SHALL
INCLUDE, AT A MINIMUM:
(I) AN OVERVIEW OF THE AGENCY, INCLUDING:
(1) THE NAMES OF THE MEMBERS OF THE AGENCY AND ITS OFFICERS;
(2) THE TOTAL AMOUNT OF OUTSTANDING BONDS OR NOTES AS OF THE CLOSE OF
THE PRIOR FISCAL YEAR, WHETHER OR NOT SUCH BONDS OR NOTES ARE CONSIDERED
OBLIGATIONS OF THE AGENCY; AND
(3) A SUMMARY OF REVENUES AND EXPENDITURES AS OF THE CLOSE OF THE
PRIOR FISCAL YEAR;
(II) A DESCRIPTION OF EACH PROJECT INCLUDING:
(1) THE NAME OF THE PROJECT APPLICANT, PROJECT OCCUPANT, AND ANY
TENANTS OR SUBTENANTS;
(2) THE TYPE OF PROJECT;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD17112-02-0 A. 11107 2 (3) THE ADDRESS OF THE PROJECT; AND (4) A DESCRIPTION OF THE UNDERLYING PURPOSE OF THE PROJECT AND BENEFIT OF THE PROJECT TO THE COMMUNITY SERVED BY THE AGENCY; (III) THE TOTAL PROJECTED OR ACTUAL CAPITAL COST OF EACH PENDING PROJECT, INCLUDING: (1) ALL COSTS OF REAL PROPERTY AND EQUIPMENT ACQUISITIONS, DESIGN, BUILDING CONSTRUCTION OR RECONSTRUCTION AND OTHER CAPITAL ITEMS, WHETHER FINANCED FROM PUBLIC OR PRIVATE SECTOR SOURCES; AND (2) THE PROJECTED TOTAL AMOUNT OF THE PROCEEDS OF AGENCY BONDS OR NOTES TO BE APPLIED TO THE PROJECT, THE PERCENTAGE SHARE THIS CONSTI- TUTES IN TERMS OF THE TOTAL PROJECT CAPITAL COST AND THE AMOUNT OF THE PROCEEDS OF AGENCY BONDS OR NOTES ACTUALLY PROVIDED FOR THE PROJECT AS OF THE CLOSE OF THE FISCAL YEAR; (IV) WITH RESPECT TO EACH PENDING PROJECT, THE TOTAL NUMBER OF FULL-TIME AND PART-TIME JOBS, INCLUDING: (1) THE SALARIES AND TOTAL ESTIMATED VALUE OF FRINGE BENEFITS FOR EACH JOB PROJECTED TO BE CREATED AND RETAINED AT THE TIME OF APPLICATION FOR EACH PROJECT; (2) THE TOTAL NUMBER OF FULL-TIME AND PART-TIME JOBS, INCLUDING THE SALARIES AND TOTAL ESTIMATED VALUE OF FRINGE BENEFITS FOR EACH JOB, EXISTING AT THE START OF EACH PROJECT; AND (3) THE TOTAL NUMBER OF FULL-TIME AND PART-TIME JOBS, INCLUDING THE SALARIES AND TOTAL ESTIMATED VALUE OF FRINGE BENEFITS FOR EACH JOB, ACTUALLY CREATED OR RETAINED AS OF THE CLOSE OF THE LAST FISCAL YEAR FOR EACH PROJECT; (V) THE PROJECTED TOTAL AMOUNT OF TAX EXEMPTIONS TO BE CLAIMED, BY YEAR AND BY TYPE (E.G., PROPERTY, SALES AND USE, MORTGAGE RECORDING) FOR EACH PENDING PROJECT; (VI) THE AMOUNT AND TYPE OF TAX EXEMPTIONS ACTUALLY PROVIDED AS OF THE CLOSE OF THE LAST FISCAL YEAR FOR EACH PENDING PROJECT; (VII) A SCHEDULE OF PAYMENTS IN LIEU OF TAXES, IF ANY, FOR EACH PROJECT, INCLUDING PAYMENTS MADE TO DATE, REMAINING PAYMENTS OUTSTANDING AND AMOUNTS OWED BUT NOT PAID; (VIII) AN ASSESSMENT OF THE ESTIMATED ECONOMIC IMPACT OF EACH PENDING PROJECT, INCLUDING: (1) THE IMPACT OF THE PENDING PROJECT ON EXISTING AND PROPOSED BUSI- NESSES AND ECONOMIC DEVELOPMENT PROJECTS IN THE VICINITY; (2) THE AMOUNT OF PRIVATE SECTOR INVESTMENT GENERATED BY THE PENDING PROJECT; (3) THE EXTENT TO WHICH THE PENDING PROJECT WILL REQUIRE THE PROVISION OF ADDITIONAL GOVERNMENTAL SERVICES, SUCH AS POLICE, FIRE AND TRANSPOR- TATION; AND (4) THE EXTENT TO WHICH THE PENDING PROJECT WILL PROVIDE ADDITIONAL SOURCES OF REVENUE FOR MUNICIPALITIES AND SCHOOL DISTRICTS; AND (IX) AN ASSESSMENT OF THE ECONOMIC IMPACT OF EACH COMPLETED PROJECTED, INCLUDING: (1) THE TOTAL FINAL ACTUAL CAPITAL COSTS OF EACH COMPLETED PROJECT, INCLUDING: (A) ALL COSTS OF REAL PROPERTY AND EQUIPMENT ACQUISITIONS, DESIGN, BUILDING CONSTRUCTION OR RECONSTRUCTION AND OTHER CAPITAL ITEMS, WHETHER FINANCED FROM PUBLIC OR PRIVATE SECTOR SOURCES; AND (B) THE PROJECTED TOTAL AMOUNT OF THE PROCEEDS OF AGENCY BONDS OR NOTES TO BE APPLIED TO THE PROJECT, THE PERCENTAGE SHARE THIS CONSTI- TUTES IN TERMS OF THE TOTAL PROJECT CAPITAL COST AND THE AMOUNT OF THE PROCEEDS OF AGENCY BONDS OR NOTES ACTUALLY PROVIDED FOR THE PROJECT AS OF THE CLOSE OF THE FISCAL YEAR; A. 11107 3 (2) THE TOTAL AMOUNT OF TAX EXEMPTIONS ACTUALLY PROVIDED OVER THE LIFE OF THE PROJECT, BY TYPE (E.G. PROPERTY, SALES AND USE, MORTGAGE RECORD- ING); (3) THE TOTAL AMOUNT OF PAYMENTS IN LIEU OF TAXES, IF ANY, MADE AND TO BE MADE OVER THE LIFE OF THE PROJECT; AND (4) AN EVALUATION OF WHETHER PROJECTED JOB CREATION AND RETENTION GOALS WERE MET. 5. WITHIN THIRTY DAYS OF COMPLETION, A COPY OF THE REPORT CARD SHALL BE FILED WITH THE GOVERNING BODY OF THE MUNICIPALITY FOR WHOSE BENEFIT THE AGENCY WAS CREATED, THE STATE COMPTROLLER AND THE DEPARTMENT OF ECONOMIC DEVELOPMENT, AT THE SAME TIME AND TOGETHER WITH THE AUDITED FINANCIAL STATEMENT REQUIRED BY SUBDIVISION ONE OF THIS SECTION, AND THE REPORT CARD SHALL BE MADE PUBLICLY AVAILABLE BY TRANSMITTING IT TO LOCAL NEWSPAPERS OF GENERAL CIRCULATION WITHIN THE MUNICIPALITY AND BY POSTING ON THE WEBSITES, IF ANY, OF THE AGENCY AND THE MUNICIPALITY FOR WHOSE BENEFIT THE AGENCY WAS CREATED. 6. IF AN AGENCY SHALL FAIL TO FILE OR MAKE PUBLICLY AVAILABLE A REPORT CARD AS REQUIRED BY THIS SECTION AND CONTINUE TO SO FAIL FOR A PERIOD OF ONE HUNDRED TWENTY DAYS AFTER THE DAY ON WHICH THE REPORT CARD IS REQUIRED TO BE FILED AND MADE PUBLICLY AVAILABLE, THE AGENCY SHALL NOT OFFER FINANCIAL ASSISTANCE WHICH PROVIDES FOR EXEMPTIONS FROM STATE TAXES UNTIL THE REPORT CARD IS FILED AND MADE PUBLICLY AVAILABLE. S 2. Section 859-a of the general municipal law, as added by chapter 356 of the laws of 1993, is amended to read as follows: S 859-a. Additional prerequisites to the provisions of financial assistance. Prior to providing any financial assistance of more than one hundred thousand dollars to any project, the agency must comply with the following prerequisites: 1. The agency must adopt a resolution describing the project and the financial assistance that the agency is contemplating with respect to such project. Such assistance shall be consistent with the uniform [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) policy adopted by the agency pursuant to subdivision four of section eight hundred seventy-four of this [chapter] TITLE, unless the agency has followed the procedures for deviation from such policy specified in paragraph (b) of such subdivi- sion. 2. The agency must hold a public hearing BEFORE A QUORUM OF AGENCY MEMBERS with respect to the project and the proposed financial assist- ance being contemplated by the agency. Said public hearing shall be held in a city, town or village where the project proposes to locate. At said public hearing, interested parties shall be provided reasonable opportu- nity, both orally and in writing, to present their views with respect to the project. A COMPLETE AND ACCURATE RECORD OF THE HEARING, INCLUDING ALL WRITTEN OR ORAL STATEMENTS MADE OR SUBMITTED, SHALL BE KEPT. NO FINAL DETERMINATION ON THE PROJECT OR THE FINANCIAL ASSISTANCE BEING CONTEMPLATED BY THE AGENCY SHALL BE MADE UNTIL AT LEAST THIRTY DAYS AFTER THE PUBLIC HEARING. 3. The agency must give at least [ten] THIRTY days published notice of [said] SUCH public hearing and shall, at the same time, provide notice of such hearing to the chief executive officer of each affected tax jurisdiction within which the project is located. The notice of hearing must state the time and place of the hearing, contain a general, func- tional description of the project, describe the prospective location of the project, identify the initial owner, operator or manager of the project and generally describe the financial assistance contemplated by the agency with respect to the project AND PROVIDE AN OPPORTUNITY FOR A. 11107 4 THE PUBLIC TO REVIEW THE PROJECT APPLICATION, WHICH SHALL INCLUDE AN ANALYSIS OF THE COSTS AND BENEFITS OF THE PROPOSED PROJECT. 4. THE DEPARTMENT OF ECONOMIC DEVELOPMENT, IN CONSULTATION WITH THE STATE COMPTROLLER, SHALL DEVELOP A STANDARD APPLICATION FORM, WHICH SHALL BE USED BY THE AGENCY TO ACCEPT REQUESTS FOR FINANCIAL ASSISTANCE FROM ALL INDIVIDUALS, FIRMS, COMPANIES, DEVELOPERS OR OTHER ENTITIES OR ORGANIZATIONS, UNLESS A WAIVER FROM SUCH REQUIREMENT IS GRANTED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UPON TIMELY REQUEST AND GOOD CAUSE SHOWN. THE STANDARD APPLICATION FORM SHALL BE SUBMITTED BY OR ON BEHALF OF THE APPLICANT, AND CERTIFIED BY THE APPLICANT, OR ON BEHALF OF THE APPLICANT BY THE CHIEF EXECUTIVE OFFICER OR SUCH OTHER INDIVIDUAL THAT IS DULY AUTHORIZED TO BIND THE APPLICANT, TO THE EFFECT THAT ALL INFOR- MATION PROVIDED THEREIN IS TRUE, ACCURATE AND COMPLETE TO THE BEST OF HIS OR HER KNOWLEDGE AND BELIEF. THE STANDARD APPLICATION FORM SHALL INCLUDE THE FOLLOWING AND SUCH OTHER SUPPLEMENTAL INFORMATION AS DETER- MINED TO BE NECESSARY AND APPROPRIATE BY THE AGENCY OR BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT, INCLUDING SUPPORTING DOCUMENTS AND INFORMATION PROVIDED BY OR ON BEHALF OF THE APPLICANT: (A) THE NAME AND ADDRESS OF THE PROJECT APPLICANT; (B) A DESCRIPTION OF THE PROPOSED PROJECT FOR WHICH FINANCIAL ASSIST- ANCE IS REQUESTED, INCLUDING THE TYPE OF PROJECT, PROPOSED LOCATION AND PURPOSE OF THE PROJECT; (C) THE AMOUNT AND TYPE OF FINANCIAL ASSISTANCE BEING REQUESTED, INCLUDING THE ESTIMATED VALUE OF EACH TYPE OF TAX EXEMPTION SOUGHT TO BE CLAIMED WITH RESPECT TO THE PROJECT; (D) THE TOTAL PROJECTED CAPITAL COST OF THE PROJECT, INCLUDING ALL COSTS OF REAL PROPERTY AND EQUIPMENT ACQUISITION, BUILDING CONSTRUCTION OR RECONSTRUCTION AND OTHER CAPITAL ITEMS, WHETHER FINANCED FROM PUBLIC OR PRIVATE SECTOR SOURCES, AND A STATEMENT OF THE PROJECTED TERMS AND CONDITIONS OF ANY PROPOSED FINANCING; (E) THE PROJECTED NUMBER OF FULL TIME EQUIVALENT JOBS THAT WOULD BE RETAINED OR CREATED IF THE REQUEST FOR FINANCIAL ASSISTANCE IS GRANTED, THE PROJECTED TIMEFRAME FOR THE CREATION OF NEW JOBS, THE ESTIMATED AVERAGE SALARIES OF THE JOBS THAT WOULD BE RETAINED OR CREATED IF THE REQUEST FOR FINANCIAL ASSISTANCE IS GRANTED AND AN ESTIMATE OF THE NUMBER OF RESIDENTS OF THE MUNICIPALITY FOR WHOSE BENEFIT THE AGENCY WAS CREATED THAT WOULD FILL SUCH JOBS; (F) A STATEMENT TO THE EFFECT THAT THE PROVISIONS OF SECTION EIGHT HUNDRED SIXTY-TWO OF THIS TITLE WILL NOT BE VIOLATED IF FINANCIAL ASSISTANCE IS PROVIDED FOR THE PROPOSED PROJECT; (G) A STATEMENT INDICATING WHETHER THE APPLICANT, ANY PRINCIPAL THERE- OF, OR ANY CORPORATE AFFILIATE OR SUBSIDIARY, WITHIN THE PAST THREE YEARS, HAS BEEN FOUND, BY FINAL JUDGMENT OF A COURT OR ADMINISTRATIVE TRIBUNAL, IN VIOLATION OF ANY FEDERAL, STATE OR LOCAL LAWS, RULES OR REGULATIONS PERTAINING TO ENVIRONMENTAL PROTECTION, TAXATION, PROTECTION OF WORKERS OR EMPLOYMENT OF MINORITY OR WOMEN-OWNED BUSINESSES, AND IF SO, LISTING ALL SUCH VIOLATIONS; (H) A STATEMENT INDICATING THAT THE APPLICANT HAS OR WILL COMPLY WITH, OR CAUSE TO BE COMPLIED WITH, ALL APPLICABLE REVIEW AND APPROVAL REQUIREMENTS PRESCRIBED BY ANY SUCH LAWS, RULES OR REGULATIONS, INCLUD- ING, BUT NOT LIMITED TO, THE STATE ENVIRONMENTAL QUALITY REVIEW ACT, PERTAINING TO THE PROJECT; AND (I) A STATEMENT ACKNOWLEDGING THAT THE SUBMISSION OF ANY FALSE OR MISLEADING INFORMATION MAY LEAD TO THE IMMEDIATE TERMINATION OF ANY FINANCIAL ASSISTANCE AND THE REIMBURSEMENT OF AN AMOUNT EQUAL TO ALL OR PART OF ANY TAX EXEMPTIONS CLAIMED AS A RESULT OF THE PROJECT. A. 11107 5 5. EACH AGENCY SHALL DEVELOP, AND ADOPT BY RESOLUTION, UNIFORM CRITE- RIA FOR THE EVALUATION AND SELECTION OF PROJECTS FOR WHICH FINANCIAL ASSISTANCE WILL BE PROVIDED. THE CRITERIA SHALL, AT A MINIMUM, PROVIDE THAT PRIOR TO THE APPROVAL OF THE PROVISION OF FINANCIAL ASSISTANCE, THERE SHALL BE: (A) AN INDEPENDENT ASSESSMENT, INQUIRY INTO AND CONFIRMATION BY THE AGENCY OF ALL MATERIAL INFORMATION INCLUDED IN CONNECTION WITH THE APPLICATION FOR FINANCIAL ASSISTANCE, AS NECESSARY TO AFFORD A REASON- ABLE BASIS FOR THE DECISION BY THE AGENCY TO PROVIDE FINANCIAL ASSIST- ANCE FOR THE PROJECT; (B) A DETERMINATION BY THE AGENCY THAT EMPLOYMENT PROJECTIONS FOR THE PROJECT ARE REASONABLE; (C) A DETERMINATION BY THE AGENCY THAT THERE IS A LIKELIHOOD THAT THE PROJECT WOULD NOT BE UNDERTAKEN BUT FOR THE FINANCIAL ASSISTANCE PROVIDED BY THE AGENCY; (D) A STANDARDIZED, WRITTEN COST-BENEFIT ANALYSIS BY THE AGENCY THAT (I) INDICATES THAT THE PROJECTED ECONOMIC BENEFITS OF THE PROJECT, INCLUDING THE CREATION AND RETENTION OF JOBS WITHIN THE MUNICIPALITY FOR WHOSE BENEFIT THE AGENCY WAS CREATED, WILL EXCEED THE ESTIMATED COST OF PROVIDING FINANCIAL ASSISTANCE, INCLUDING THE COST IN NET LOSS OF REVEN- UES TO AFFECTED TAX JURISDICTIONS, AND THE APPROXIMATE POINT IN TIME WHEN SUCH BENEFITS WILL EXCEED SUCH COST, (II) INCLUDES AN ANALYSIS OF THE ESTIMATED COST PER JOB CREATED OR RETAINED, AND (III) INCLUDES AN ANALYSIS OF THE LOSS IN TAX REVENUES TO THE AFFECTED TAX JURISDICTIONS OVER THE PERIOD OF ANY TAX EXEMPTIONS; (E) A DETERMINATION BY THE AGENCY THAT THE PROJECT IS IN COMPLIANCE WITH ALL PROVISIONS OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO, THIS SECTION AND SECTION EIGHT HUNDRED SIXTY-TWO OF THIS TITLE; (F) IF THE PROJECT INVOLVES THE REMOVAL OR ABANDONMENT OF A FACILITY OR PLANT WITHIN THE STATE, NOTIFICATION BY THE AGENCY TO THE CHIEF EXEC- UTIVE OFFICER OR OFFICERS OF THE MUNICIPALITY OR MUNICIPALITIES IN WHICH THE FACILITY OR PLANT WAS LOCATED; (G) A DEVELOPMENT OF BENCHMARKS TO EVALUATE WHETHER THE PROJECT WILL MEET PROJECTED GOALS AND TARGETS, INCLUDING THOSE RELATING TO JOB CREATION AND RETENTION; AND (H) A DETERMINATION THAT NEITHER THE APPLICANT, NOR ANY PRINCIPAL THEREOF OR CORPORATE AFFILIATE OR SUBSIDIARY, WITHIN THE PAST THREE YEARS, HAS BEEN FOUND, BY FINAL JUDGMENT OF A COURT OR ADMINISTRATIVE TRIBUNAL, IN VIOLATION OF ANY FEDERAL, STATE OR LOCAL LAWS, RULES OR REGULATIONS, IF SUCH VIOLATION IS DEEMED BY THE AGENCY TO BE A MATERIAL VIOLATION, PERTAINING TO ENVIRONMENTAL PROTECTION, TAXATION, PROTECTION OF WORKERS OR EMPLOYMENT OF MINORITY OR WOMEN-OWNED BUSINESSES. 6. THE DEPARTMENT OF ECONOMIC DEVELOPMENT, IN CONSULTATION WITH THE STATE COMPTROLLER, SHALL DEVELOP A UNIFORM INDUSTRIAL DEVELOPMENT AGENCY PROJECT AGREEMENT, THAT SETS FORTH TERMS AND CONDITIONS UNDER WHICH FINANCIAL ASSISTANCE SHALL BE PROVIDED. THE UNIFORM INDUSTRIAL DEVELOP- MENT AGENCY PROJECT AGREEMENT SHALL BE USED BY ALL AGENCIES AND NO FINANCIAL ASSISTANCE SHALL BE PROVIDED IN THE ABSENCE OF THE EXECUTION OF SUCH AN AGREEMENT, UNLESS A WAIVER FROM SUCH REQUIREMENT IS GRANTED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UPON TIMELY REQUEST AND GOOD CAUSE SHOWN. THE UNIFORM INDUSTRIAL DEVELOPMENT AGENCY PROJECT AGREEMENT SHALL, AT A MINIMUM: (A) DESCRIBE THE PROJECT AND THE FINANCIAL ASSISTANCE, INCLUDING THE AMOUNT AND TYPE, TO BE PROVIDED, AND THE AGENCY PURPOSE TO BE ACHIEVED; (B) REQUIRE EACH PROJECT OCCUPANT TO PROVIDE ANNUALLY A CERTIFIED STATEMENT: (I) ENUMERATING THE JOBS RETAINED AND CREATED AS A RESULT OF A. 11107 6 THE FINANCIAL ASSISTANCE BY TITLE, FUNCTION AND WHETHER FULL OR PART TIME, AND THE SALARIES AND FRINGE BENEFITS FOR EACH SUCH JOB; AND (II) INDICATING THE AMOUNTS OF EACH PAYMENT IN LIEU OF TAX THAT WAS MADE AND THE ENTITY TO WHICH EACH PAYMENT WAS MADE; (C) PRESCRIBE A SPECIFIC SCHEDULE, INCLUDING THE TIMING AND AMOUNTS FOR EACH AFFECTED TAX JURISDICTION, FOR THE PAYMENTS OF ANY PAYMENTS IN LIEU OF TAXES THAT ARE NEGOTIATED AS PART OF THE TRANSACTION; (D) REQUIRE THE RETENTION OF, AND PERMIT THE AGENCY, OR INDIVIDUALS OR ENTITIES AUDITING THE AGENCY, ACCESS TO, FOR PURPOSES OF EXAMINATION INTO THE AFFAIRS OF THE AGENCY, ALL PAYROLL DOCUMENTS AND OTHER BOOKS AND RECORDS OF THE PROJECT APPLICANT, OCCUPANT OR ANY SUBTENANT OR EMPLOYER, AS NECESSARY TO CONFIRM JOB AND SALARY INFORMATION OR OTHER- WISE ASSESS WHETHER THE TERMS, CONDITIONS, GOALS OR PURPOSES OF THE PROJECT HAVE BEEN MET; (E) PROVIDE FOR DISCONTINUANCE OF FINANCIAL ASSISTANCE, OR FOR THE MODIFICATION OF ANY PAYMENT IN LIEU OF TAX AGREEMENT TO REQUIRE FOR INCREASED PAYMENTS, IN THE EVENT OF A MATERIAL VIOLATION OF THE TERMS AND CONDITIONS OF THE AGREEMENT; (F) PROVIDE FOR THE RETURN OF ALL OR A PART OF THE FINANCIAL ASSIST- ANCE PROVIDED FOR THE PROJECT, INCLUDING ALL OR PART OF THE AMOUNT OF ANY TAX EXEMPTIONS, WHICH SHALL BE REDISTRIBUTED TO THE APPROPRIATE AFFECTED TAX JURISDICTION, IN THE EVENT OF MATERIAL SHORTFALLS FROM JOB CREATION AND RETENTION PROJECTIONS, OR A MATERIAL VIOLATION OF THE TERMS AND CONDITIONS OF THE AGREEMENT; (G) IN THE CASE OF A PROJECT FOR WHICH THE APPLICATION FOR FINANCIAL ASSISTANCE INDICATES PLANS TO BUILD A FACILITY THAT WILL SUBSEQUENTLY BE LEASED TO TENANTS, AND IT IS UNKNOWN AT THE TIME OF APPLICATION WHO ALL THE TENANTS OF THE FACILITY WILL BE, PROVIDE FOR A PHASING-IN OF BENE- FITS BASED UPON THE PRO RATA SHARE OF SQUARE FOOTAGE AND TYPE OF OCCU- PANCY WITHIN THE FACILITY THAT IS OCCUPIED PURSUANT TO TENANT LEASE AGREEMENTS; AND (H) INCLUDE AS APPENDICES: (I) A COPY OF THE STANDARD APPLICATION FORM SUBMITTED FOR THE PROJECT; (II) A SUMMARY OF THE AGENCY'S EVALUATION OF THE PROJECT PERFORMED PURSUANT TO SUBDIVISION FIVE OF THIS SECTION; (III) SIGNIFICANT CORRESPONDENCE PERTAINING TO THE PROJECT; (IV) A SUMMARY OF THE STATEMENTS BY ANY PUBLIC HEARING CONDUCTED IN CONNECTION WITH THE PROJECT; AND (V) ANY OTHER MATERIAL SUPPORTING DOCUMENTS PERTAINING TO THE PROJECT. 7. THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL CONDUCT INVESTIGATIONS OF MATERIAL COMPLAINTS CONCERNING POSSIBLE VIOLATIONS OF ANY UNIFORM INDUSTRIAL DEVELOPMENT AGENCY PROJECT AGREEMENT AND SHALL RECEIVE THE FULL COOPERATION OF, AND ACCESS TO ALL RELEVANT BOOKS AND RECORDS OF, THE AGENCY, THE MUNICIPALITY FOR WHOSE BENEFIT THE AGENCY IS CREATED, THE PROJECT OCCUPANT AND ANY TENANT OR SUBTENANT AND ANY STATE AGENCY IS CONDUCTING ANY SUCH INVESTIGATION. THE DEPARTMENT OF ECONOMIC DEVELOP- MENT SHALL NOTIFY THE AGENCY AND THE STATE COMPTROLLER OF THE RESULTS OF ANY SUCH INVESTIGATIONS. S 3. Section 862 of the general municipal law, as added by chapter 1030 of the laws of 1969, is amended to read as follows: S 862. Restrictions on funds of the agency. 1. No funds of the agency shall be used in respect of any project if the completion thereof would result in the removal of an industrial or manufacturing plant of the project occupant from one area of the state to another area of the state or in the abandonment of one or more plants or facilities of the project occupant located within the state, provided, however, that neither restriction shall apply if the agency shall determine on the basis of A. 11107 7 the application before it that the project is reasonably necessary to discourage the project occupant from removing such other plant or facil- ity to a location outside the state or is reasonably necessary to preserve the competitive position of the project occupant in its respec- tive industry. 2. (A) EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, NO FINANCIAL ASSISTANCE OF THE AGENCY SHALL BE PROVIDED IN RESPECT OF ANY PROJECT WHERE FACILITIES OR PROPERTY THAT ARE PRIMARILY USED IN MAKING RETAIL SALES TO CUSTOMERS WHO PERSONALLY VISIT SUCH FACILITIES CONSTI- TUTE MORE THAN ONE-THIRD OF THE TOTAL PROJECT COST. FOR THE PURPOSES OF THIS ARTICLE, RETAIL SALES SHALL MEAN: (I) SALES BY A REGISTERED VENDOR UNDER ARTICLE TWENTY-EIGHT OF THE TAX LAW PRIMARILY ENGAGED IN THE RETAIL SALE OF TANGIBLE PERSONAL PROPERTY, AS DEFINED IN SUBPARAGRAPH (I) OF PARAGRAPH FOUR OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED ONE OF THE TAX LAW; OR (II) SALES OF A SERVICE TO SUCH CUSTOMERS. EXCEPT, HOWEVER, THAT TOURISM DESTINATION PROJECTS AND PROJECTS OPERATED BY NOT-FOR-PROFIT CORPORATIONS SHALL NOT BE PROHIBITED BY THIS SUBDIVISION. FOR THE PURPOSE OF THIS PARAGRAPH, "TOURISM DESTINATION" SHALL MEAN A LOCATION OR FACILITY WHICH IS LIKELY TO ATTRACT A SIGNIFICANT NUMBER OF VISITORS FROM OUTSIDE THE ECONOMIC DEVELOPMENT REGION AS ESTABLISHED BY SECTION TWO HUNDRED THIRTY OF THE ECONOMIC DEVELOPMENT LAW, IN WHICH THE PROJECT IS LOCATED. (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI- SION, FINANCIAL ASSISTANCE MAY, HOWEVER, BE PROVIDED TO A PROJECT WHERE FACILITIES OR PROPERTY THAT ARE PRIMARILY USED IN MAKING RETAIL SALES OF GOODS OR SERVICES TO CUSTOMERS WHO PERSONALLY VISIT SUCH FACILITIES TO OBTAIN SUCH GOODS OR SERVICES CONSTITUTE MORE THAN ONE-THIRD OF THE TOTAL PROJECT COST, WHERE (I) THE PROJECT OCCUPANT WOULD, BUT FOR THE ASSISTANCE PROVIDED BY THE AGENCY, LOCATE THE RELATED JOBS OUTSIDE THE STATE, OR (II) THE PREDOMINANT PURPOSE OF THE PROJECT WOULD BE TO MAKE AVAILABLE GOODS OR SERVICES WHICH WOULD NOT, BUT FOR THE PROJECT, BE REASONABLY ACCESSIBLE TO THE RESIDENTS OF THE CITY, TOWN, OR VILLAGE WITHIN WHICH THE PROPOSED PROJECT WOULD BE LOCATED BECAUSE OF A LACK OF REASONABLY ACCESSIBLE RETAIL TRADE FACILITIES OFFERING SUCH GOODS OR SERVICES, OR (III) THE PROJECT IS LOCATED IN A HIGHLY DISTRESSED AREA. (C) WITH RESPECT TO PROJECTS AUTHORIZED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION, NO PROJECT SHALL BE APPROVED UNLESS THE AGENCY SHALL FIND AFTER THE PUBLIC HEARING REQUIRED BY SECTION EIGHT HUNDRED FIFTY-NINE-A OF THIS TITLE THAT UNDERTAKING THE PROJECT WILL SERVE THE PUBLIC PURPOSES OF THIS ARTICLE BY PRESERVING PERMANENT, PRIVATE SECTOR JOBS OR INCREASING THE OVERALL NUMBER OF PERMANENT, PRIVATE SECTOR JOBS IN THE STATE. WHERE THE AGENCY MAKES SUCH A FINDING, PRIOR TO PROVIDING FINANCIAL ASSISTANCE TO THE PROJECT BY THE AGENCY, THE CHIEF EXECUTIVE OFFICER OF THE MUNICIPALITY FOR WHOSE BENEFIT THE AGENCY WAS CREATED SHALL CONFIRM THE PROPOSED ACTION OF THE AGENCY. 3. NO FUNDS OF THE AGENCY SHALL BE USED FOR THE PURPOSE OF PREVENTING THE ESTABLISHMENT OF AN INDUSTRIAL OR MANUFACTURING PLANT, NOR SHALL ANY FUNDS OF THE AGENCY BE GIVEN TO ANY GROUP OR ORGANIZATION WHICH IS ATTEMPTING TO PREVENT THE ESTABLISHMENT OF AN INDUSTRIAL OR MANUFACTUR- ING PLANT WITHIN THIS STATE NOR SHALL SUCH FUNDS BE USED FOR ADVERTISING OR PROMOTIONAL MATERIALS WHICH DEPICT ELECTED OR APPOINTED GOVERNMENT OFFICIALS IN EITHER PRINT OR ELECTRONIC MEDIA. S 4. Subdivision 4 of section 874 of the general municipal law, as amended by chapter 357 of the laws of 1993, is amended to read as follows: A. 11107 8 (4) (a) The agency shall establish a uniform [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) AGREEMENT policy, with input from affected tax jurisdictions, which shall be applicable to the provision of financial assistance pursuant to section eight hundred fifty-nine-a of this [chap- ter] TITLE and shall provide guidelines for the claiming of real proper- ty, mortgage recording, and sales tax exemptions. Such guidelines shall include, but not be limited to: period of exemption; PAYMENTS IN LIEU OF TAXES, AS A percentage of [exemption] TAXES THAT WOULD HAVE BEEN LEVIED BY OR ON BEHALF OF AFFECTED TAX JURISDICTIONS IF THE PROJECT WAS NOT TAX EXEMPT BY REASON OF AGENCY INVOLVEMENT; types of projects for which exemptions can be claimed; procedures for payments in lieu of taxes and instances in which real property appraisals are to be performed as a part of an application for tax exemption; in addition, agencies shall in adopting such policy consider such issues as: the extent to which a project will create or retain permanent, private sector jobs; the esti- mated value of any tax exemptions to be provided; whether affected tax jurisdictions shall be reimbursed by the project occupant if a project does not fulfill the purposes for which an exemption was provided; the impact of a proposed project on existing and proposed businesses and economic development projects in the vicinity; the amount of private sector investment generated or likely to be generated by the proposed project; the demonstrated public support for the proposed project; the likelihood of accomplishing the proposed project in a timely fashion; the effect of the proposed project upon the environment; the extent to which the proposed project will require the provision of additional services, including, but not limited to additional educational, trans- portation, police, emergency medical or fire services; and the extent to which the proposed project will provide additional sources of revenue for municipalities and school districts. (b) The agency shall establish a procedure for deviation from the uniform [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) policy required pursuant to this subdivision. The agency shall set forth in writing the reasons for deviation from such policy, and shall further notify the affected local taxing jurisdictions of the proposed deviation from such policy and the reasons therefor. SUCH NOTICE TO THE AFFECTED TAX JURIS- DICTIONS SHALL BE GIVEN TO THE CHIEF EXECUTIVE OFFICER OF EACH AFFECTED TAX JURISDICTION AT LEAST THIRTY DAYS PRIOR TO THE MEETING OF THE AGENCY AT WHICH THE AGENCY SHALL CONSIDER WHETHER TO APPROVE SUCH PROPOSED DEVIATION. PRIOR TO TAKING FINAL ACTION AT SUCH MEETING, THE AGENCY SHALL REVIEW AND RESPOND TO ANY CORRESPONDENCE RECEIVED FROM ANY AFFECTED TAX JURISDICTION REGARDING SUCH DEVIATION. THE AGENCY SHALL ALLOW ANY REPRESENTATIVE OF AN AFFECTED TAX JURISDICTION PRESENT AT SUCH MEETING TO ADDRESS THE AGENCY REGARDING SUCH PROPOSED DEVIATION. S 5. Section 874 of the general municipal law is amended by adding a new subdivision 9 to read as follows: (9) WITHIN THIRTY DAYS OF THE DATE THAT THE AGENCY DESIGNATES A PROJECT OPERATOR OR OTHER PERSON TO ACT AS AGENT OF THE AGENCY FOR PURPOSES OF EXTENDING A SALES TAX EXEMPTION TO SUCH PERSON, THE AGENCY SHALL FILE A STATEMENT WITH THE DEPARTMENT OF TAXATION AND FINANCE RELATING THERETO, ON A FORM AND IN SUCH MANNER AS IS PRESCRIBED BY THE COMMISSIONER OF TAXATION AND FINANCE, IDENTIFYING EACH SUCH AGENT SO NAMED BY THE AGENCY, SETTING FORTH THE TAXPAYER IDENTIFICATION NUMBER OF EACH SUCH AGENT, GIVING A BRIEF DESCRIPTION OF THE GOODS AND SERVICES INTENDED TO BE EXEMPTED FROM SALES TAXES AS A RESULT OF SUCH APPOINTMENT AS AGENT, INDICATING THE AGENCY'S ROUGH ESTIMATE OF THE VALUE OF THE GOODS AND SERVICES TO WHICH SUCH APPOINTMENT AS AGENT RELATES, INDICAT- A. 11107 9 ING THE DATE WHEN SUCH DESIGNATION AS AGENT BECAME EFFECTIVE AND INDI- CATING THE DATE UPON WHICH SUCH DESIGNATION AS AGENT SHALL CEASE. S 6. The general municipal law is amended by adding a new section 885 to read as follows: S 885. DISSOLUTION AND MERGER OF AGENCIES. 1. ANY INDUSTRIAL DEVELOP- MENT AGENCY ESTABLISHED FOR THE BENEFIT OF A TOWN, VILLAGE OR CITY WITH- IN A COUNTY MAY DISSOLVE AND SIMULTANEOUSLY MERGE WITH THE INDUSTRIAL DEVELOPMENT AGENCY ESTABLISHED FOR THE BENEFIT OF THE COUNTY IN WHICH THE AGENCY ESTABLISHED FOR THE BENEFIT OF THE TOWN, VILLAGE OR CITY IS LOCATED, IF SUCH A COUNTY AGENCY HAS BEEN ESTABLISHED, SUBJECT TO THE PROVISIONS OF THIS SECTION. UPON THE EFFECTIVE DATE OF THE DISSOLUTION AND MERGER, THE TOWN, VILLAGE OR CITY AGENCY, NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FIFTY-SIX AND SECTION EIGHT HUNDRED EIGHTY-TWO OF THIS TITLE, SHALL CEASE TO EXIST AND ALL THE RIGHTS, TITLES, INTERESTS, OBLIGATIONS AND LIABILITIES OF SUCH AGENCIES, INCLUDING, BUT NOT LIMITED TO, THE RIGHTS AND OBLIGATIONS UNDER ANY BOND, NOTE, CONTRACT OR OTHER AGREEMENT, EXPRESS OR IMPLIED, SHALL DEVOLVE TO, BE VESTED IN AND POSSESSED BY THE COUNTY AGENCY, WHICH SHALL IN ALL RESPECTS AND FOR ALL PURPOSES BE THE SUCCESSOR IN INTEREST TO SUCH TOWN, VILLAGE OR CITY AGENCY. 2. IN THE EVENT THAT AN AGENCY PROPOSES TO DISSOLVE OR MERGE PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THE GOVERNING BODY OF THE TOWN, VILLAGE OR CITY FOR WHOSE BENEFIT THE AGENCY WAS ESTABLISHED, IN CONSUL- TATION WITH THE MEMBERS OF THE AGENCY, MEMBERS OF THE AGENCY ESTABLISHED FOR THE BENEFIT OF THE COUNTY, AND THE CHIEF EXECUTIVE OF THE COUNTY, SHALL ADOPT A PLAN SETTING FORTH, AT A MINIMUM: (A) THE NAME AND DATE OF ESTABLISHMENT OF THE AGENCY OR AGENCIES TO BE DISSOLVED; (B) THE NAMES OF THE MEMBERS OF SUCH AGENCY, SPECIFYING THE IDENTITY OF THE CHAIRPERSON; (C) THE UNDERLYING PURPOSE OF THE DISSOLUTION AND MERGER, INCLUDING ECONOMIES AND EFFICIENCIES THAT ARE PROJECTED AS A RESULT THEREOF; (D) A STATEMENT, CONTAINING BOTH CURRENT INFORMATION AND INFORMATION PROJECTED TO THE PROPOSED DATE OF THE DISSOLUTION AND MERGER, OF: (1) THE OUTSTANDING BONDS, NOTES AND ANY OTHER OBLIGATIONS OR LIABILITIES; (2) ACTUAL AND ACCRUED REVENUES; (3) EACH PROJECT FOR WHICH FINANCIAL ASSISTANCE HAS BEEN PROVIDED, THE TYPE OF FINANCIAL ASSISTANCE PROVIDED AND THE STATUS OF THE PROJECT; AND (4) THE GENERAL TERMS AND CONDITIONS OF EACH CONTRACT, INCLUDING PAYMENT IN LIEU OF TAX AGREEMENTS; (E) THE TERMS AND CONDITIONS OF THE PROPOSED DISSOLUTION AND MERGER INCLUDING A STATEMENT ACKNOWLEDGING THAT THE COUNTY AGENCY SHALL, UPON THE EFFECTIVE DATE OF THE DISSOLUTION AND MERGER, SUCCEED TO ALL THE RIGHTS, TITLES, INTERESTS, OBLIGATIONS AND LIABILITIES, INCLUDING BONDS, NOTES AND OTHER OBLIGATIONS AND CONTRACTUAL RIGHTS AND OBLIGATIONS, OF THE DISSOLVED AND MERGED TOWN, VILLAGE OR CITY AGENCIES; (F) A STATEMENT OF ANY AMENDMENTS OR CHANGES TO THE CERTIFICATE OF THE COUNTY AGENCY FILED IN THE OFFICE OF THE SECRETARY OF STATE NECESSITATED BY THE MERGER; AND (G) A STATEMENT THAT THE PLAN OF MERGER HAS BEEN REVIEWED AND APPROVED BY COUNSEL FOR THE TOWN, VILLAGE OR CITY AGENCY AND COUNSEL FOR THE COUNTY AGENCY, INDICATING THAT EACH COUNSEL HAS CONSIDERED THE IMPACT, IF ANY, OF THE DISSOLUTION AND MERGER ON: (1) THE RIGHTS OF ANY EMPLOY- EES OF THE MERGING AGENCIES; AND (2) THE RECIPIENTS OF FINANCIAL ASSIST- ANCE FROM THE AGENCIES. 3. NO LATER THAN JULY FIRST, TWO THOUSAND ELEVEN, THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL UNDERTAKE A STUDY TO IDENTIFY THOSE TOWN, A. 11107 10 VILLAGE OR CITY AGENCIES THAT, AS DETERMINED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT, HAVE NOT UNDERTAKEN SIGNIFICANT ACTIVITY WITHIN THE PRIOR FIVE YEARS AND, IF DEEMED APPROPRIATE BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT, SUCH COMMISSIONER SHALL RECOMMEND THAT SUCH AGEN- CIES BE DISSOLVED AND MERGED INTO THE COUNTY AGENCY. THE COMMISSIONER OF ECONOMIC DEVELOPMENT'S FINDINGS SHALL BE REPORTED NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND ELEVEN, TO THE GOVERNOR, THE STATE COMP- TROLLER, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY AND TO EACH AGENCY IDENTIFIED IN THE REPORT. S 7. Subdivisions 1 and 2 of section 1953-a of the public authorities law, subdivision 1 as amended by chapter 357 of the laws of 1993 and subdivision 2 as added by chapter 356 of the laws of 1993, are amended to read as follows: 1. The authority must adopt a resolution describing the project and the financial assistance that the authority is contemplating with respect to such project. Such assistance shall be consistent with the uniform [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) policy adopted by the agency pursuant to subdivision one of section nineteen hundred sixty-three-a of this [chapter] TITLE, unless the agency has followed procedures for deviation from such policy specified in subdivision two of such section. 2. The authority must hold a public hearing BEFORE A QUORUM OF AGENCY MEMBERS with respect to the project and the proposed financial assist- ance being contemplated by the authority. At said public hearing, inter- ested parties shall be provided reasonable opportunity, both orally and in writing, to present their views with respect to the project. S 8. Section 1963-a of the public authorities law, as amended by chap- ter 357 of the laws of 1993, is amended to read as follows: S 1963-a. Uniform tax exemption policy. 1. The authority shall estab- lish a uniform [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) policy, with input from affected local taxing jurisdictions, which shall be applicable to provisions of financial assistance pursuant to section nineteen hundred fifty-three-a of this [chapter] TITLE and shall provide guidelines for the claiming of real property, mortgage recording, and sales tax exemptions. Such guidelines shall include, but not be limited to: period of exemption; PAYMENTS IN LIEU OF TAXES, AS A percentage of [exemption] TAXES THAT WOULD HAVE BEEN LEVIED BY OR ON BEHALF OF AFFECTED TAX JURISDICTIONS IF THE PROJECT WAS NOT TAX EXEMPT BY REASON OF AGENCY INVOLVEMENT; types of projects for which exemptions can be claimed; procedures for payments in lieu of taxes and instances in which real property appraisals are to be performed as a part of an application for tax exemption; in addition, the authority in adopting such policy shall consider such issues as: the extent to which a project will create or retain permanent, private sector jobs; the estimated value of any tax exemption to be provided; whether affected tax jurisdictions should be reimbursed by the project occupant if a project does not fulfill the purposes for which an exemption was provided; the impact of a proposed project on existing and proposed businesses and economic development projects in the vicinity; the amount of private sector investment gener- ated or likely to be generated by the proposed project; the demonstrated public support for the proposed project; the likelihood of accomplishing the proposed project in a timely fashion; the effect of the proposed project upon the environment; the extent to which the proposed project will require the provision of additional services, including, but not limited to additional educational, transportation, police, emergency medical or fire services; and the extent to which the proposed project A. 11107 11 will provide additional sources or revenue for municipalities and school districts. 2. The authority shall establish a procedure for deviation from the uniform [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) policy required pursuant to this section. The authority shall set forth in writing the reasons for deviation from such policy, and shall further notify the affected tax jurisdictions of the proposed deviation from such policy and the reasons therefor. S 9. Subdivisions 1 and 2 of section 2307 of the public authorities law, subdivision 1 as amended by chapter 357 of the laws of 1993 and subdivision 2 as added by chapter 356 of the laws of 1993, are amended to read as follows: 1. The authority must adopt a resolution describing the project and the financial assistance that the authority is contemplating with respect to such project. Such assistance shall be consistent with the uniform [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) policy adopted by the agency pursuant to subdivision one of section twenty-three hundred fifteen of this [chapter] TITLE, unless the agency has followed proce- dures for deviation from such policy specified in subdivision two of such section. 2. The authority must hold a public hearing BEFORE A QUORUM OF AGENCY MEMBERS with respect to the project and the proposed financial assist- ance being contemplated by the authority. At said public hearing, inter- ested parties shall be provided reasonable opportunity, both orally and in writing, to present their views with respect to the project. S 10. Section 2315 of the public authorities law, as amended by chap- ter 357 of the laws of 1993, is amended to read as follows: S 2315. Uniform tax exemption policy. 1. The authority shall establish a uniform [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) policy, with input from affected local taxing jurisdictions, which shall be applica- ble to provisions of financial assistance pursuant to section twenty- three hundred seven of this [chapter] TITLE and shall provide guidelines for the claiming of real property, mortgage recording, and sales tax exemptions. Such guidelines shall include, but not be limited to: period of exemption; PAYMENTS IN LIEU OF TAXES, AS A percentage of [exemption] TAXES THAT WOULD HAVE BEEN LEVIED BY OR ON BEHALF OF AFFECTED TAX JURIS- DICTIONS IF THE PROJECT WAS NOT TAX EXEMPT BY REASON OF AGENCY INVOLVE- MENT; types of projects for which exemptions may be claimed; procedures for payments in lieu of taxes and instances in which real property appraisals are to be performed as a part of an application for tax exemption; in addition, the authority in adopting such policy shall consider such issues as: the extent to which a project will create or retain permanent, private sector jobs; the estimated value of any tax exemption to be provided; whether affected tax jurisdictions should be reimbursed by the project occupant if a project does not fulfill the purposes for which an exemption was provided; the impact of a proposed project on existing and proposed businesses and economic development projects in the vicinity; the amount of private sector investment gener- ated or likely to be generated by the proposed project; the demonstrated public support for the proposed project; the likelihood of accomplishing the proposed project in a timely fashion; the effect of the proposed project upon the environment; the extent to which the proposed project will require the provision of additional services, including, but not limited to additional educational, transportation, police, emergency medical or fire services; and the [extend] EXTENT to which the proposed A. 11107 12 project will provide additional sources of revenue for municipalities and school districts. 2. The authority shall establish a procedure for deviation from the uniform [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) policy required pursuant to this section. The authority shall set forth in writing the reasons for deviation from such policy, and shall further notify the affected local taxing jurisdictions of the proposed deviation from such policy and the reasons therefor. S 11. This act shall take effect immediately.
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