Senate Bill S7541A

2011-2012 Legislative Session

Provides for accountability and efficiency of industrial development agencies

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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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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 08, 2012	print number 7541a
Jun 08, 2012	amend and recommit to rules
May 31, 2012	referred to rules

Bill Amendments

2011-S7541 - Details

Current Committee:: Senate Rules
Law Section:: General Municipal Law
Laws Affected:: Amd §§859, 859-a, 862, 874, add §885, Gen Muni L; amd §§1953-a, 1963-a, 2307 & 2315, Pub Auth L

2011-S7541 - Summary

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.

2011-S7541 - Sponsor Memo

                                BILL NUMBER:S7541

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 transpar-
ency of the operations of industrial development agencies and authori-
ties (IDAs), by requiring standard application forms for requests for
financial assistance, providing for the preparation, filing and publica-
tion of an annual Summary and assessment of financial activities and
operations for the prior fiscal year to be known as a "report card" and
instituting 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
procedures for the merger and consolidation of IDAs located within the
same county.

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 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.  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, as well as for each project 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 all assessment of the estimated economic impact
of the project. IDAs would also be required to assess the economic
impact of projects completed during the prior fiscal year.  Specif-
ically, 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 and job
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 I 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 applicable taxing jurisdic-
tion.

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 appli-
cant, 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 financ-
ing, 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 standardized, written cost-benefit analysis would
be required, as well as a determination that employment projections are
reasonable, along with the development 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 Comptroller, to develop a
uniform IDA project agreement that would set forth the terms and condi-
tions 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 agree-
ment would be required to contain certain provisions, including:  a
description of the project and the proposed 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 entities auditing the IDA; a
provision for the discontinuance of financial assistance or a modifica-
tion of PILOT agreements in the event of a material violation of the
terms and conditions of the agreement: a provision.  for the return of
financial assistance in the event of material shortfalls 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
A new Subdivision 7 to Section 859-a of the General Municipal Law, also
added by Section 2 of this bill, requires the Department of Economic
Development to conduct investigations of material complaints concerning
possible violations of a project agreement.

Restriction on funds of IDAs
Section 3 of this bill adds back into Section 862 of the General Munici-
pal Law a provision of law that had sunset. The new Subdivision 2 of
this Section provides that no funds of an IDA shall be used for adver-
tising 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 percent-
age of exemption. This Section also adds back into the law language that
had sunset. Such language relates to requirements to give notice to

affected tax jurisdictions for deviation from the Uniform PILOT Agree-
ment Policy.

Dissolution and merger
Section 5 of this bill would add a new Section 885 to the General Munic-
ipal Law to authorize and set f011h 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 effective date of the dissol-
ution and merger, the town, village or city IDA would cease to exist and
all rights, titles, interests, obligations and liabilities of those IDAs
would be vested in the county IDA. The Commissioner 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 undertaken by July 1, 2013, and the
Commissioner's findings reported to the Speaker of the Assembly, the
Temporary President of the Senate, the Governor, and the State Comp-
troller and to each IDA identified in the report, by December 31, 2013.

Troy and Auburn IDAs
Sections 6 through 9 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 10 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 "finan-
cial 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, maintaining,
equipping and furnishing of industrial, manufacturing, warehousing,
commercial, research and recreation and certain other listed facilities,
and thereby advance the job opportunities, health, general prosperity
and economic welfare of the people of the State of New York and to
improve their recreational 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 moneys 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 taxes" 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 have been 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 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 improvements
are necessary, especially in light of the critical role IDAs often play
in the economic wellbeing of a community and their 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 staff from the Office of the State Comptroller 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 require-
ments, the types of information IDAs would receive for each project
would be more standardized and the process used to assess each applica-
tion would be more consistent and thorough. This should lead to a more
uniform and transparent process, more informed decision-making by IDAs,
and increased confidence by taxpayers that decisions to provide finan-
cial 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 hear-
ing and that no final determination on the project or the financial

assistance being contemplated by the agency be made until at least thir-
ty 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 its 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, which 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,
and they are 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 had not been tax-exempt by
reason of agency involvement, rather than the current requirement for
"percentage of exemption." 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, incor-

rectly characterizing PILOTs as if they were actual tax payments, rather
than "in lieu of' payments. This change should help clarify the
distinction between taxes themselves and PILOTs, and serve to enhance
more accurate reporting and lessen confusion.

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 proc-
ess 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.

PRIOR LEGISLATIVE HISTORY:
Similar to A.11107 of 2010.

FISCAL IMPLICATIONS:
None to the State.

EFFECTIVE DATE:
This act shall take effect immediately.

2011-S7541 - Bill Text download pdf

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

                                  7541

                            I N  S E N A T E

                              May 31, 2012
                               ___________

Introduced  by  COMMITTEE  ON  RULES  --  (at request of the State Comp-
  troller) -- read twice and ordered printed, and  when  printed  to  be
  committed to the Committee on Rules

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;

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

                                                           LBD14118-02-2

S. 7541                             2

  (2) THE TYPE OF PROJECT;
  (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

S. 7541                             3

PROCEEDS  OF  AGENCY BONDS OR NOTES ACTUALLY PROVIDED FOR THE PROJECT AS
OF THE CLOSE OF THE FISCAL YEAR;
  (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

S. 7541                             4

project and generally describe the financial assistance contemplated  by
the  agency  with  respect to the project AND PROVIDE AN OPPORTUNITY FOR
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

S. 7541                             5

FINANCIAL ASSISTANCE AND THE REIMBURSEMENT OF AN AMOUNT EQUAL TO ALL  OR
PART OF ANY TAX EXEMPTIONS CLAIMED AS A RESULT OF THE PROJECT.
  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;

S. 7541                             6

  (B) REQUIRE EACH PROJECT OCCUPANT  TO  PROVIDE  ANNUALLY  A  CERTIFIED
STATEMENT:  (I) ENUMERATING THE JOBS RETAINED AND CREATED AS A RESULT OF
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

S. 7541                             7

occupant located within  the  state,  provided,  however,  that  neither
restriction  shall  apply  if the agency shall determine on the basis of
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. NO FUNDS OF THE AGENCY SHALL 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:
  (4)  (a)  The agency shall establish a uniform [tax exemption] PAYMENT
IN LIEU OF TAX (PILOT) policy, with input from  affected  tax  jurisdic-
tions,  which  shall be applicable to the provision of financial assist-
ance pursuant to section eight hundred fifty-nine-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, 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. 7541                             8

  S  5. 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 THIRTEEN, THE COMMISSIONER
OF ECONOMIC DEVELOPMENT SHALL UNDERTAKE A STUDY TO IDENTIFY THOSE  TOWN,
VILLAGE  OR  CITY  AGENCIES  THAT,  AS DETERMINED BY THE COMMISSIONER OF
ECONOMIC DEVELOPMENT, HAVE NOT UNDERTAKEN  SIGNIFICANT  ACTIVITY  WITHIN

S. 7541                             9

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  THIRTEEN, 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  6. 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 7. 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
will provide additional sources or revenue for municipalities and school
districts.

S. 7541                            10

  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 8. 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 9. Section 2315 of the public authorities law, as amended by chapter
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
project  will  provide  additional sources of revenue for municipalities
and school districts.

S. 7541                            11

  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 10. This act shall take effect immediately.

2011-S7541A (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: General Municipal Law
Laws Affected:: Amd §§859, 859-a, 862, 874, add §885, Gen Muni L; amd §§1953-a, 1963-a, 2307 & 2315, Pub Auth L

2011-S7541A (ACTIVE) - Summary

2011-S7541A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7541A

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, providing for the preparation and
publication of an annual summary and requiring uniform criteria for
the evaluation and selection of projects for which financial
assistance is provided. The bill would also provide procedures for
the merger and consolidation of IDAs located within the same county.

SUMMARY OF PROVISIONS:
Preparation and Publication of Annual Summary:
Section 1 of this bill would amend Section 859 of the General
Municipal Law by adding new Subdivisions 4 and 5 that require IDAs to
prepare an annual summary containing an assessment of financial
activities and operations for the prior fiscal year. The IDA would be

required to prepare the summary within ninety days following the
close of each fiscal year and to include information for each pending
and completed project For every completed project, the summary 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 and job retention goals were met.

Also, the IDA would be required to make the summary publicly available
by posting it on the websites, if any, of the IDA and the
municipality for whose benefit the IDA was created.

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 a minimum of two 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 30 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 applicable taxing
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 affirmed under the penalty of perjury, 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 standardized, written cost-benefit analysis would be required, as
well as a determination that employment projections are reasonable,
along with the development 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 Comptroller, 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 the proposed 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
entities auditing the IDA; a provision for the discontinuance of
financial assistance or a modification of PILOT agreements in the

event of a material violation of the terms and conditions of the
agreement; a provision for the return of financial assistance in the
event of material shortfalls 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:
A new Subdivision 7 to Section 859-a of
the General Municipal Law, also added by Section 2 of this bill,
requires the Department of Economic Development to conduct
investigations of material complaints concerning possible violations
of a project agreement.

Restriction on funds of IDAs:
Section 3 of this bill adds back into
Section 862 of the General Municipal Law a provision of law that had
sunset. The new Subdivision 2 of this Section provides that no funds
of an IDA shall 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 requirements to
give notice to affected tax jurisdictions for deviation from the
Uniform PILOT Agreement Policy.

Dissolution and Merger:
Section 5 of this bill would add a new
Section 885 to the General Municipal Law 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 effective date of the dissolution and merger, the
town, village or city IDA would cease to exist and all rights,
titles, interests, obligations and liabilities of those IDAs would be
vested in the county IDA. The Commissioner 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 undertaken by July

1, 2013, 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, 2013.

Troy and Auburn IDAs:
Sections 6 through 9 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 10 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, maintaining, equipping and
furnishing of industrial, manufacturing, warehousing, commercial,
research and recreation and certain other listed facilities, and
thereby advance the job opportunities, health, general prosperity and
economic welfare of the people of the State of New York and to
improve their recreational 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 moneys 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 taxes" 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 have been 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 Authorities Accountability Act of 2005 (Chapter 766)
added requirements for governance, reporting, auditing and property
disposition that 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 improvements are necessary, especially in
light of the critical role IDAs often play in the economic wellbeing
of a community and their 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 financial assistance from an IDA, or by which an IDA
grants such assistance or monitors projects after assistance is
provided. Instead, audits conducted by staff from the Office of the
State Comptroller 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 would be more consistent and
thorough. This should lead to a more uniform and transparent 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
minimum of two of the IDA board members be present at the hearing and
that no final determination on the project or the financial
assistance being contemplated by the agency be made until at least
thirty days after the public hearing.

Also, each IDA project would be undertaken in accordance w~th a
standard project agreement that would set forth the tem1S and
conditions of the assistance and provide mechanisms to help ensure
that the IDA can monitor 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 summary containing a summary
of its financial activities for the prior fiscal year.
Much of the information to be included in the summary 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 summary. Moreover, by compiling this information
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, which
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 complying with the summary
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, and they are 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 operation 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 had not been tax-exempt by reason of agency involvement,
rather than the current requirement for "percentage of exemption." 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. This change should
help clarify the distinction between taxes themselves and PILOTs, and
serve to enhance more accurate reporting and lessen confusion.

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.

PRIOR LEGISLATIVE HISTORY:
Similar to A.11107 of 2010.

FISCAL IMPLICATIONS:
None to the State.

EFFECTIVE DATE:
This act shall take effect immediately.

2011-S7541A (ACTIVE) - Bill Text download pdf

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

                                 7541--A

                            I N  S E N A T E

                              May 31, 2012
                               ___________

Introduced  by  COMMITTEE  ON  RULES  --  (at request of the State Comp-
  troller) -- read twice and ordered printed, and  when  printed  to  be
  committed  to  the  Committee  on  Rules -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

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:

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

                                                           LBD14118-06-2

S. 7541--A                          2

  (1)  THE  NAME  OF  THE  PROJECT  APPLICANT, PROJECT OCCUPANT, AND ANY
TENANTS OR SUBTENANTS;
  (2) THE TYPE OF PROJECT;
  (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-

S. 7541--A                          3

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;
  (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

S. 7541--A                          4

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
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

S. 7541--A                          5

  (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.
  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:

S. 7541--A                          6

  (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
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

S. 7541--A                          7

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
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. NO FUNDS OF THE AGENCY SHALL 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:
  (4)  (a)  The agency shall establish a uniform [tax exemption] PAYMENT
IN LIEU OF TAX (PILOT) policy, with input from  affected  tax  jurisdic-
tions,  which  shall be applicable to the provision of financial assist-
ance pursuant to section eight hundred fifty-nine-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, 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

S. 7541--A                          8

ALLOW ANY REPRESENTATIVE OF AN AFFECTED TAX JURISDICTION PRESENT AT SUCH
MEETING TO ADDRESS THE AGENCY REGARDING SUCH PROPOSED DEVIATION.
  S  5. 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 THIRTEEN,  THE  COMMISSIONER
OF  ECONOMIC DEVELOPMENT SHALL UNDERTAKE A STUDY TO IDENTIFY THOSE TOWN,

S. 7541--A                          9

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 THIRTEEN, 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 6. 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 MINIMUM OF TWO
AGENCY MEMBERS with respect to the project and  the  proposed  financial
assistance  being contemplated by the authority. At said public hearing,
interested parties shall be provided reasonable opportunity, both orally
and in writing, to present their views with respect to the project.
  S 7. 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

S. 7541--A                         10

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 8. 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 MINIMUM OF TWO
AGENCY MEMBERS with respect to the project and  the  proposed  financial
assistance  being contemplated by the authority. At said public hearing,
interested parties shall be provided reasonable opportunity, both orally
and in writing, to present their views with respect to the project.
  S 9. Section 2315 of the public authorities law, as amended by chapter
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

S. 7541--A                         11

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 10. This act shall take effect immediately.

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