S T A T E O F N E W Y O R K
________________________________________________________________________
1874
2009-2010 Regular Sessions
I N A S S E M B L Y
January 12, 2009
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Introduced by M. of A. BRODSKY -- read once and referred to the Commit-
tee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, the not-for-profit corpo-
ration law and the general municipal law, in relation to borrowing by
public authorities, not-for-profit corporations, and industrial devel-
opment agencies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public authorities law is amended by adding a new
section 2960-a to read as follows:
S 2960-A. LIMITATIONS ON BORROWING. NO PUBLIC AUTHORITY OR OFFICER
THEREOF MAY TAKE ANY ACTION TO AUTHORIZE, APPROVE, ISSUE, OR OTHERWISE
FACILITATE THE ISSUANCE, MARKETING, SALE, OR APPROVAL OF ANY BOND OR
BORROWING WHOSE AGGREGATE AMOUNT EXCEEDS FIFTY MILLION DOLLARS UNLESS 1.
THE PROJECTS PROJECTED JOB CREATION AND/OR INVESTMENT IN THE PROPOSED
LOCATION OR LOCATIONS VERSUS THE TOTAL AMOUNT OF BENEFITS THE BUSINESS
ENTERPRISE WILL POTENTIALLY RECEIVE SHALL BE A RATIO OF AT LEAST 20:1,
THE NUMERATOR OF WHICH IS THE SUM OF (A) THE ESTIMATED VALUE OF ALL
WAGES AND BENEFITS PAID TO ALL EXISTING AND PROJECTED EMPLOYEES OF THE
BUSINESS ENTERPRISE AT THE LOCATION OR LOCATIONS AND (B) THE ESTIMATED
VALUE OF CAPITAL INVESTMENTS FOR THE LOCATION OR LOCATIONS, AND THE
DENOMINATOR OF WHICH IS THE ESTIMATED AMOUNT OF TOTAL BENEFITS THAT MAY
BE USED BY THE BUSINESS ENTERPRISE; AND 2. THE COST OF CREATION OF
PERMANENT NEW JOBS IS LESS THAN FIFTY THOUSAND DOLLARS.
S 2. Section 506 of the not-for-profit corporation law is amended by
adding a new paragraph (e) to read as follows:
(E) LIMITATIONS ON BORROWING. NO NOT-FOR-PROFIT CORPORATION OR OFFICER
THEREOF MAY TAKE ANY ACTION TO AUTHORIZE, APPROVE, ISSUE, OR OTHERWISE
FACILITATE THE ISSUANCE, MARKETING, SALE, OR APPROVAL OF ANY BOND OR
BORROWING WHOSE AGGREGATE AMOUNT EXCEEDS FIFTY MILLION DOLLARS UNLESS
(1) THE PROJECTS PROJECTED JOB CREATION AND/OR INVESTMENT IN THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05695-01-9
A. 1874 2
PROPOSED LOCATION OR LOCATIONS VERSUS THE TOTAL AMOUNT OF BENEFITS THE
BUSINESS ENTERPRISE WILL POTENTIALLY RECEIVE SHALL BE A RATIO OF AT
LEAST 20:1, THE NUMERATOR OF WHICH IS THE SUM OF (I) THE ESTIMATED VALUE
OF ALL WAGES AND BENEFITS PAID TO ALL EXISTING AND PROJECTED EMPLOYEES
OF THE BUSINESS ENTERPRISE AT THE LOCATION OR LOCATIONS AND (II) THE
ESTIMATED VALUE OF CAPITAL INVESTMENTS FOR THE LOCATION OR LOCATIONS,
AND THE DENOMINATOR OF WHICH IS THE ESTIMATED AMOUNT OF TOTAL BENEFITS
THAT MAY BE USED BY THE BUSINESS ENTERPRISE; AND (2) THE COST OF
CREATION OF PERMANENT NEW JOBS IS LESS THAN FIFTY THOUSAND DOLLARS.
S 3. The general municipal law is amended by adding a new section
858-c to read as follows:
S 858-C. LIMITATIONS ON BORROWING. NO INDUSTRIAL DEVELOPMENT AGENCY OR
OFFICER THEREOF MAY TAKE ANY ACTION TO AUTHORIZE, APPROVE, ISSUE, OR
OTHERWISE FACILITATE THE ISSUANCE, MARKETING, SALE, OR APPROVAL OF ANY
BOND OR BORROWING WHOSE AGGREGATE AMOUNT EXCEEDS FIFTY MILLION DOLLARS
UNLESS (1) THE PROJECTS PROJECTED JOB CREATION AND/OR INVESTMENT IN THE
PROPOSED LOCATION OR LOCATIONS VERSUS THE TOTAL AMOUNT OF BENEFITS THE
BUSINESS ENTERPRISE WILL POTENTIALLY RECEIVE SHALL BE A RATIO OF AT
LEAST 20:1, THE NUMERATOR OF WHICH IS THE SUM OF (I) THE ESTIMATED VALUE
OF ALL WAGES AND BENEFITS PAID TO ALL EXISTING AND PROJECTED EMPLOYEES
OF THE BUSINESS ENTERPRISE AT THE LOCATION OR LOCATIONS AND (II) THE
ESTIMATED VALUE OF CAPITAL INVESTMENTS FOR THE LOCATION OR LOCATIONS,
AND THE DENOMINATOR OF WHICH IS THE ESTIMATED AMOUNT OF TOTAL BENEFITS
THAT MAY BE USED BY THE BUSINESS ENTERPRISE; AND (2) THE COST OF
CREATION OF PERMANENT NEW JOBS IS LESS THAN FIFTY THOUSAND DOLLARS.
S 4. This act shall take effect immediately.