NY State Senate Bill 2011-S4428

Senate Bill S4428

2011-2012 Legislative Session

Relates to borrowing by public authorities, not-for-profit corporations, and industrial development agencies

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to corporations, authorities and commissions
Apr 05, 2011	referred to corporations, authorities and commissions

2011-S4428 (ACTIVE) - Details

See Assembly Version of this Bill:: A6312
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Add §2960-a, Pub Auth L; amd §506, N-PC L; add §858-c, Gen Muni L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A1874
2013-2014: A6252

2011-S4428 (ACTIVE) - Summary

Relates to borrowing by public authorities, not-for-profit corporations, and industrial development agencies.

2011-S4428 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S4428

TITLE OF BILL:
An act
to amend the public authorities law, the not-for-profit corporation law
and the
general municipal law, in relation to borrowing by public authorities,
not-for-profit corporations, and
industrial development agencies

PURPOSE OR GENERAL IDEA OF THE BILL:
To ensure that projects that
receive tax payer funding provide a true public benefit; including
job growth and capital investments.

SUMMARY OF PROVISIONS:
Amends the Public Authorities Law, the
Not-for-Profit Law, and the General Municipal Law, which would
prevent public authorities, not-for-profit corporations and
industrial development agencies, or.an officer of such an agency,
from facilitating the sale of bonds or borrowing of funds over $50
million unless it meets certain criteria set forth in the bill.

JUSTIFICATION:
As taxpayer support for private corporations and
private economic activity has mushroomed in recent years, the

fundamental question of public benefit has surfaced and resurfaced,
without a consistent and satisfying answer. Critics on both the left
and right have decried these taxpayer subsidies as socialism,
wasteful, corrupt, anti-free enterprise, and unfair to average
citizens whose economic struggles are undertaken without public
subsidy. Yet the phrases "economic development", 'job creation",
"growth", etc., retain enormous political power.
A real analysis of these subsidies has yet to be done, but there
clearly is growing pressure to insure that public benefits flow from
public investments. It is clear, however, that everyone from the most
ardent supporter to the most ardent critic of the deal agrees that
public subsidies are a decision to employ taxpayer money for the
benefit of the public. Without a measurable, identifiable, specific
and significant public benefit, public financial assistance should
not be given. This bill will protect public funds and ensure that a
true public benefit will be achieved when large economic development
projects are subsidized by New Yorkers.

LEGISLATIVE HISTORY:
A.1874 of 2009-10 - on calendar in 2009.

FISCAL IMPLICATIONS:
No negative fiscal implications.

EFFECTIVE DATE:
Immediately.

2011-S4428 (ACTIVE) - Bill Text download pdf

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

                                  4428

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              April 5, 2011
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions

AN ACT to amend the public authorities law,  the  not-for-profit  corpo-
  ration  law and the general municipal law, in relation to borrowing by
  public authorities, not-for-profit corporations, and industrial devel-
  opment agencies

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

  Section  1.  The  public  authorities  law  is amended by adding a new
section 2960-a to read as follows:
  S 2960-A. LIMITATIONS ON BORROWING. NO  PUBLIC  AUTHORITY  OR  OFFICER
THEREOF  MAY  TAKE  ANY ACTION TO AUTHORIZE, APPROVE, ISSUE OR OTHERWISE
FACILITATE THE ISSUANCE, MARKETING, SALE OR  APPROVAL  OF  ANY  BOND  OR
BORROWING WHOSE AGGREGATE AMOUNT EXCEEDS FIFTY MILLION DOLLARS UNLESS 1.
THE  PROJECTS  PROJECTED  JOB CREATION AND/OR INVESTMENT IN THE PROPOSED
LOCATION OR LOCATIONS VERSUS THE TOTAL AMOUNT OF BENEFITS  THE  BUSINESS
ENTERPRISE  WILL  POTENTIALLY RECEIVE SHALL BE A RATIO OF AT LEAST 20:1,
THE NUMERATOR OF WHICH IS THE SUM OF (A)  THE  ESTIMATED  VALUE  OF  ALL
WAGES  AND  BENEFITS PAID TO ALL EXISTING AND PROJECTED EMPLOYEES OF THE
BUSINESS ENTERPRISE AT THE LOCATION OR LOCATIONS AND (B)  THE  ESTIMATED
VALUE  OF  CAPITAL  INVESTMENTS  FOR  THE LOCATION OR LOCATIONS, AND THE
DENOMINATOR OF WHICH IS THE ESTIMATED AMOUNT OF TOTAL BENEFITS THAT  MAY
BE  USED  BY  THE  BUSINESS  ENTERPRISE;  AND 2. THE COST OF CREATION OF
PERMANENT NEW JOBS IS LESS THAN FIFTY THOUSAND DOLLARS.
  S 2. Section 506 of the not-for-profit corporation law is  amended  by
adding a new paragraph (e) to read as follows:
  (E) LIMITATIONS ON BORROWING. NO NOT-FOR-PROFIT CORPORATION OR OFFICER
THEREOF  MAY  TAKE  ANY ACTION TO AUTHORIZE, APPROVE, ISSUE OR OTHERWISE
FACILITATE THE ISSUANCE, MARKETING, SALE OR  APPROVAL  OF  ANY  BOND  OR
BORROWING  WHOSE  AGGREGATE  AMOUNT EXCEEDS FIFTY MILLION DOLLARS UNLESS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04157-01-1

S. 4428                             2

(1) THE  PROJECTS  PROJECTED  JOB  CREATION  AND/OR  INVESTMENT  IN  THE
PROPOSED  LOCATION  OR LOCATIONS VERSUS THE TOTAL AMOUNT OF BENEFITS THE
BUSINESS ENTERPRISE WILL POTENTIALLY RECEIVE SHALL  BE  A  RATIO  OF  AT
LEAST 20:1, THE NUMERATOR OF WHICH IS THE SUM OF (I) THE ESTIMATED VALUE
OF  ALL  WAGES AND BENEFITS PAID TO ALL EXISTING AND PROJECTED EMPLOYEES
OF THE BUSINESS ENTERPRISE AT THE LOCATION OR  LOCATIONS  AND  (II)  THE
ESTIMATED  VALUE  OF  CAPITAL INVESTMENTS FOR THE LOCATION OR LOCATIONS,
AND THE DENOMINATOR OF WHICH IS THE ESTIMATED AMOUNT OF  TOTAL  BENEFITS
THAT  MAY  BE  USED  BY  THE  BUSINESS  ENTERPRISE;  AND (2) THE COST OF
CREATION OF PERMANENT NEW JOBS IS LESS THAN FIFTY THOUSAND DOLLARS.
  S 3. The general municipal law is amended  by  adding  a  new  section
858-c to read as follows:
  S 858-C. LIMITATIONS ON BORROWING. NO INDUSTRIAL DEVELOPMENT AGENCY OR
OFFICER  THEREOF  MAY  TAKE  ANY  ACTION TO AUTHORIZE, APPROVE, ISSUE OR
OTHERWISE FACILITATE THE ISSUANCE, MARKETING, SALE OR  APPROVAL  OF  ANY
BOND  OR  BORROWING WHOSE AGGREGATE AMOUNT EXCEEDS FIFTY MILLION DOLLARS
UNLESS (1) THE PROJECTS PROJECTED JOB CREATION AND/OR INVESTMENT IN  THE
PROPOSED  LOCATION  OR LOCATIONS VERSUS THE TOTAL AMOUNT OF BENEFITS THE
BUSINESS ENTERPRISE WILL POTENTIALLY RECEIVE SHALL  BE  A  RATIO  OF  AT
LEAST 20:1, THE NUMERATOR OF WHICH IS THE SUM OF (I) THE ESTIMATED VALUE
OF  ALL  WAGES AND BENEFITS PAID TO ALL EXISTING AND PROJECTED EMPLOYEES
OF THE BUSINESS ENTERPRISE AT THE LOCATION OR  LOCATIONS  AND  (II)  THE
ESTIMATED  VALUE  OF  CAPITAL INVESTMENTS FOR THE LOCATION OR LOCATIONS,
AND THE DENOMINATOR OF WHICH IS THE ESTIMATED AMOUNT OF  TOTAL  BENEFITS
THAT  MAY  BE  USED  BY  THE  BUSINESS  ENTERPRISE;  AND (2) THE COST OF
CREATION OF PERMANENT NEW JOBS IS LESS THAN FIFTY THOUSAND DOLLARS.
  S 4. This act shall take effect immediately.

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