S T A T E   O F   N E W   Y O R K
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                                  5163

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 14, 2011
                               ___________

Introduced  by  M. of A. LUPARDO, BING, CUSICK, GABRYSZAK -- Multi-Spon-
  sored by -- M. of A.  MAGEE -- read once and referred to the Committee
  on Economic Development

AN ACT to amend the New York state urban development corporation act, in
  relation to enacting the state financial incentive protection act

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

  Section  1.  This  act  shall  be known and may be cited as the "state
financial incentive protection act".
  S 2. Section 1 of chapter 174 of the laws of  1968,  constituting  the
New York state urban development corporation act, is amended by adding a
new section 5-a to read as follows:
  S  5-A. STATE FINANCIAL INCENTIVE PROTECTION ACT. 1. LEGISLATIVE FIND-
INGS AND INTENT.  THE LEGISLATURE HEREBY FINDS AND DECLARES IT TO BE THE
POLICY OF  THE  STATE  TO  ENSURE  THAT  ECONOMIC  DEVELOPMENT  BENEFITS
EXTENDED  TO  BUSINESSES  AND  CORPORATIONS ARE USED TO PROVIDE JOBS AND
BENEFITS TO THE PEOPLE OF THE STATE. THE LEGISLATURE HAS A  RESPONSIBIL-
ITY  TO ENSURE THAT TAXPAYER MONEY IS USED FOR ITS INTENDED PURPOSE. THE
LEGISLATURE ALSO FINDS THAT COMPANIES RELOCATE FOR A VARIETY OF REASONS,
BUT BELIEVES THAT THE LEGISLATURE SHOULD NOT  FINANCE  SUCH  RELOCATION.
THE  STATE HAS LIMITED RESOURCES THAT SHOULD BE USED TO ASSIST COMPANIES
THAT HAVE MADE EFFORTS TOWARDS IMPROVING ECONOMIC  DEVELOPMENT  IN  THIS
STATE, NOT COMPANIES THAT DO NOT MAKE SUCH EFFORTS.
  2. DEFINITIONS. AS USED IN THIS SECTION:
  (A)  "BUSINESS  ENTITY"  SHALL  MEAN  ANY PERSON, CORPORATION, LIMITED
LIABILITY COMPANY, ORGANIZATION, OR PARTNERSHIP RECOGNIZED  BY  LAW,  OR
ANY COMBINATION THEREOF.
  (B)  "FINANCIAL  INCENTIVES" SHALL MEAN ANY AGREEMENT OR UNDERSTANDING
BETWEEN THE STATE OF NEW YORK AND A BUSINESS ENTITY PURSUANT TO  ARTICLE
18-B  OF  THE  GENERAL  MUNICIPAL  LAW, OR BETWEEN THE CORPORATION AND A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07313-01-1

              

A. 5163                             2

BUSINESS ENTITY, PROVIDING FOR AWARDS, GRANTS, LOANS, LOAN GRANTEES, TAX
BENEFITS AND OTHER FINANCIAL ASSISTANCE TO SUCH BUSINESS ENTITIES.
  (C)  "OUTSOURCING  JOBS" MEANS TO RELOCATE OR MOVE EMPLOYMENT, JOBS OR
POSITIONS FROM THE STATE OF NEW YORK TO OUTSIDE OF THE STATE.
  3. PROHIBITION FROM RECEIVING STATE AID WHEN OUTSOURCING JOBS. (A)  AS
A  CONDITION OF THE RECEIPT OF FINANCIAL INCENTIVES, THE BUSINESS ENTITY
SHALL AGREE THAT IT WILL NOT OUTSOURCE JOBS.
  (B) ANY BUSINESS ENTITY THAT OUTSOURCES JOBS SHALL RETURN SUCH  FINAN-
CIAL INCENTIVES TO THE STATE, EXCEPT AS PROVIDED FOR IN PARAGRAPH (E) OF
THIS SUBDIVISION.
  (C) A BUSINESS ENTITY THAT VIOLATES THIS SECTION SHALL NOT RECEIVE ANY
FINANCIAL  INCENTIVES FOR A PERIOD OF FIVE YEARS FROM THE DATE OF DETER-
MINATION OF SUCH VIOLATION.
  (D) IF THE BUSINESS ENTITY  RECEIVES  FINANCIAL  INCENTIVES  BUT  THEN
OUTSOURCES  JOBS  DURING  THE TWELVE MONTH PERIOD AFTER IT RECEIVES SUCH
FINANCIAL INCENTIVES OR DURING THE CONTRACTUAL PERIOD FOR THE PARTICULAR
FINANCIAL INCENTIVE WHICH RESULTS IN A NET LOSS OF JOBS, IT SHALL RETURN
SUCH FINANCIAL INCENTIVES TO THE STATE.
  (E) ANY FINANCIAL INCENTIVES RECEIVED PRIOR TO THE EFFECTIVE  DATE  OF
THIS SECTION SHALL NOT BE SUBJECT TO THE PROVISIONS OF THIS SECTION.
  (F) IF A BUSINESS ENTITY OUTSOURCES JOBS DURING THE PERIOD REFERRED TO
IN  PARAGRAPH (D) OF THIS SUBDIVISION BUT DOES NOT ACHIEVE A NET LOSS OF
JOBS  FOR  THE  BUSINESS  ENTITY'S  STATEWIDE  EMPLOYMENT   LEVEL,   THE
PROVISIONS OF THIS SECTION SHALL NOT APPLY.
  4.  ENFORCEMENT.  THE  ATTORNEY  GENERAL  SHALL  HAVE THE AUTHORITY TO
ENFORCE THE PROVISIONS OF THIS SECTION.
  5. REPORTING. (A) THE  CORPORATION  AND  THE  DEPARTMENT  OF  ECONOMIC
DEVELOPMENT SHALL FILE AN ANNUAL REPORT WITH THE ATTORNEY GENERAL NOTING
THE  BUSINESS ENTITY, THE AMOUNT AND THE REASON FOR THE FINANCIAL INCEN-
TIVE AND ANY OTHER DATE THAT  THE  ATTORNEY  GENERAL  MAY  REQUIRE.  THE
REPORT SHALL BE SUBMITTED BEFORE FEBRUARY FIRST OF EACH YEAR.
  (B)  ANY  BUSINESS  ENTITY THAT RECEIVES FINANCIAL INCENTIVES FROM THE
CORPORATION SHALL SUBMIT AN ANNUAL REPORT TO THE  ATTORNEY  GENERAL  AND
THE  CORPORATION STATING THE AMOUNT OF THE FINANCIAL INCENTIVE RECEIVED,
THE NUMBER OF EMPLOYEES OF SUCH BUSINESS ENTITY GAINED OR  LOST  IN  NEW
YORK  OVER THE COURSE OF THE YEAR, THE USE TO WHICH THE FINANCIAL INCEN-
TIVES WERE APPLIED, AND ANY OTHER  DATA  THE  ATTORNEY  GENERAL  OR  THE
CORPORATION  MAY  REQUIRE. THE REPORT SHALL BE SUBMITTED BEFORE FEBRUARY
FIRST OF EACH YEAR.
  (C) EACH REPORT SHALL BE MADE AVAILABLE TO THE  PUBLIC  IN  AN  EASILY
ACCESSIBLE  FORMAT,  INCLUDING  BUT NOT LIMITED TO AN ELECTRONIC VERSION
VIA THE WORLD WIDE WEB.
  S 3. Severability.  If any item, clause, sentence, subparagraph, para-
graph, subdivision, section, or any other  part  of  this  act,  or  the
application thereof to any person or circumstances, is held to be inval-
id,  such  holding shall not affect, impair, or invalidate the remainder
of this act, or the application of such section or  part  of  a  section
held  invalid,  to  any  other  person  or  circumstances,  but shall be
confined in its operation to the item, clause,  sentence,  subparagraph,
paragraph,  subdivision,  section,  or  other  part of this act directly
involved in such holding, or to the  person  and  circumstances  therein
involved.
  S  4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.