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S 202-A. LIMITATION ON POWERS. NOTWITHSTANDING THE PROVISIONS OF
SECTION TWO HUNDRED TWO OF THIS ARTICLE, A LIMITED LIABILITY COMPANY
SHALL NOT PARTICIPATE IN ANY TRANSACTION OR SERIES OF RELATED TRANS-
ACTIONS INVOLVING THE PAYMENT OF MONEY OVER A PERIOD OF TIME BY OR ON
BEHALF OF A MUNICIPALITY LOCATED IN THIS STATE AND HAVING AS A PURPOSE
THE DIRECT OR INDIRECT FINANCING OF THE MUNICIPALITY'S OPERATIONS OR THE
ACQUISITION OR IMPROVEMENT OF AN ASSET BY OR FOR THE USE OF THE MUNICI-
PALITY. PROVIDED, HOWEVER, THAT NOTHING IN THIS SECTION SHALL PROHIBIT A
LIMITED LIABILITY COMPANY FROM ENTERING INTO A TRUE LEASE WITH A MUNICI-
PALITY, ENTERING INTO AN INSTALLMENT PURCHASE CONTRACT PURSUANT TO
SECTION ONE HUNDRED NINE-B OF THE GENERAL MUNICIPAL LAW OR PURCHASING
BONDS OR NOTES ISSUED PURSUANT TO THE LOCAL FINANCE LAW.
S 4. Subdivision 1 of paragraph a of section 101.00 of the local
finance law, as amended by chapter 200 of the laws of 1960, is amended
to read as follows:
1. Give or loan its credit to or in aid of any individual, or public
or private corporation or association, or private undertaking, INCLUD-
ING, BUT NOT LIMITED TO, GUARANTEEING OR ASSUMING THE INDEBTEDNESS OR
OBLIGATIONS OF ANY NOT-FOR-PROFIT CORPORATION OR LIMITED LIABILITY
COMPANY FORMED BY, ON BEHALF OF, FOR THE BENEFIT OF, OR UNDER THE
CONTROL OF THE MUNICIPALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION, or
S 5. Section 176.00 of the local finance law, as amended by chapter
837 of the laws of 1945, is amended to read as follows:
S 176.00 Local finance law to be the exclusive law. A. Except as
otherwise provided in this article, all statutes, local laws, ordi-
nances, rules and regulations, insofar as they relate to the matters
herein contained, are hereby superseded, it being the legislative intent
that this chapter shall constitute the exclusive law on such matters.
B. UNLESS EXPRESSLY AND SPECIFICALLY OTHERWISE PROVIDED IN ANY OTHER
GENERAL LAW OR IN A SPECIAL LAW, THE PROVISIONS OF THIS CHAPTER SHALL BE
THE EXCLUSIVE LAW GOVERNING THE MANNER IN WHICH MUNICIPALITIES, SCHOOL
DISTRICTS AND DISTRICT CORPORATIONS FINANCE OVER A PERIOD OF TIME THEIR
OPERATIONS AND THE ACQUISITION OR IMPROVEMENT OF AN ASSET BY OR FOR THE
USE OF A MUNICIPALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION.
S 6. Paragraph (a) of section 102 of the not-for-profit corporation
law is amended by adding a new subparagraph 19 to read as follows:
(19) "MUNICIPALITY" MEANS A COUNTY, CITY, TOWN, VILLAGE, SCHOOL
DISTRICT, BOARD OF COOPERATIVE EDUCATIONAL SERVICES, COMMUNITY COLLEGE,
PUBLIC LIBRARY OR LIBRARY DISTRICT, DISTRICT CORPORATION, TOWN OR COUNTY
IMPROVEMENT DISTRICT, OR OTHER SPECIAL DISTRICT ESTABLISHED FOR THE
PURPOSE OF CARRYING ON, PERFORMING OR FINANCING ONE OR MORE IMPROVEMENTS
OR SERVICES FOR BENEFITED PROPERTIES OR PROPERTY OWNERS WITHIN SUCH
SPECIAL DISTRICT.
S 7. Section 204 of the not-for-profit corporation law is amended to
read as follows:
S 204. Limitation on activities.
Notwithstanding any other provision of this chapter or any other
general law, a corporation of any type or kind to which this chapter
applies shall: (A) conduct no activities for pecuniary profit or finan-
cial gain, whether or not in furtherance of its corporate purposes,
except to the extent that such activity supports its other lawful activ-
ities then being conducted; AND (B) NOT PARTICIPATE IN ANY TRANSACTION
OR SERIES OF RELATED TRANSACTIONS INVOLVING THE PAYMENT OF MONEY OVER A
PERIOD OF TIME BY OR ON BEHALF OF A MUNICIPALITY AND HAVING AS A PURPOSE
THE DIRECT OR INDIRECT FINANCING OF THE MUNICIPALITY'S OPERATIONS, OR
THE ACQUISITION OR IMPROVEMENT OF AN ASSET BY OR FOR THE USE OF THE
A. 3631 3
MUNICIPALITY, PROVIDED, HOWEVER, THAT NOTHING IN THIS SECTION SHALL
PROHIBIT SUCH A CORPORATION FROM ENTERING INTO A TRUE LEASE WITH A MUNI-
CIPALITY OR PURCHASING BONDS OR NOTES ISSUED PURSUANT TO THE LOCAL
FINANCE LAW.
S 8. Paragraphs (a), (c), (d) and (i) of section 1411 of the not-for-
profit corporation law, paragraph (a) as amended by chapter 847 of the
laws of 1970, are amended and a new paragraph (d-1) is added to read as
follows:
(a) Purposes.
This section shall provide an additional and alternate method of
incorporation or reincorporation of not-for-profit corporations for any
of the purposes set forth in this paragraph [and shall not be deemed to
alter, impair or diminish the purposes, rights, powers or privileges of
any corporation heretofore or hereafter incorporated under this section
or under the stock or business corporation laws]. Corporations may be
incorporated or reincorporated under this section as not-for-profit
local development corporations operated for the exclusively charitable
or public purposes of relieving and reducing unemployment, promoting and
providing for additional and maximum employment, bettering and maintain-
ing job opportunities, instructing or training individuals to improve or
develop their capabilities for such jobs, carrying on scientific
research for the purpose of aiding a community or geographical area by
attracting new industry to the community or area or by encouraging the
development of, or retention of, an industry in the community or area,
and lessening the burdens of government and acting in the public inter-
est, and any one or more counties, cities, towns or villages of the
state, or any combination thereof, or the New York job development
authority in exercising its power under the public authorities law to
encourage the organization of local development corporations, may cause
such corporations to be incorporated by public officers or private indi-
viduals or reincorporated upon compliance with the requirements of this
section, and it is hereby found, determined and declared that in carry-
ing out said purposes and in exercising the powers conferred by para-
graph (b) such corporations will be performing an essential governmental
function.
(c) Powers.
In furtherance of its purposes set forth in paragraph (a) but not for
any other purposes, a local development corporation incorporated or
reincorporated under this section shall have the following powers: to
construct, acquire, rehabilitate and improve for use by others indus-
trial or manufacturing plants in the territory in which its operations
are principally to be conducted, to assist financially in such
construction, acquisition, rehabilitation and improvement, to maintain
such plants for others in such territory, to disseminate information and
furnish advice, technical assistance and liaison with federal, state and
local authorities with respect thereto, to acquire by purchase, lease,
gift, bequest, devise or otherwise real or personal property or inter-
ests therein, to borrow money and to issue negotiable bonds, notes and
other obligations therefor, and notwithstanding section 510 (Disposition
of all or substantially all assets) without leave of the court, to sell,
lease, mortgage or otherwise dispose of or encumber any such plants or
any of its real or personal property or any interest therein upon such
terms as it may determine and, in connection with loans from the New
York job development authority, to enter into covenants and agreements
and to comply with all the terms, conditions and provisions thereof, and
otherwise to carry out its corporate purposes and to foster and encour-
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age the location or expansion of industrial or manufacturing plants in
the territory in which the operations of such corporation are principal-
ly to be conducted, provided, however, that no such corporation shall:
(1) attempt to influence legislation by propaganda or otherwise, or
participate or intervene, directly or indirectly, in any political
campaign on behalf of or in opposition to any candidate for public
office; (2) PARTICIPATE IN ANY TRANSACTION OR SERIES OF RELATED TRANS-
ACTIONS INVOLVING THE PAYMENT OF MONEY OVER A PERIOD OF TIME BY OR ON
BEHALF OF A MUNICIPALITY AND HAVING AS A PURPOSE THE DIRECT OR INDIRECT
FINANCING OF THE MUNICIPALITY'S OPERATIONS, OR THE ACQUISITION OR
IMPROVEMENT OF AN ASSET BY OR FOR THE USE OF THE MUNICIPALITY, PROVIDED,
HOWEVER, THAT NOTHING IN THIS SECTION SHALL PROHIBIT A LOCAL DEVELOPMENT
CORPORATION FROM ENTERING INTO A TRUE LEASE WITH A MUNICIPALITY OR
PURCHASING BONDS OR NOTES ISSUED PURSUANT TO THE LOCAL FINANCE LAW; AND
(3) IN THE CASE OF A LOCAL DEVELOPMENT CORPORATION, THE INCORPORATION OF
WHICH WAS CAUSED BY A COUNTY, CITY, TOWN OR VILLAGE, PROVIDE COMPEN-
SATION TO A PERSON WHO SERVES AS A DIRECTOR, OFFICER OR EMPLOYEE OF SUCH
CORPORATION WHEN THE PERSON SERVES OR HAS SERVED WITHIN THE PREVIOUS TWO
YEARS AS AN OFFICER OR EMPLOYEE OF SUCH COUNTY, CITY, TOWN OR VILLAGE.
(d) Purchase or lease of real property owned by a county, city, town
or village.
(1) The local legislative body of a county, city, town or village
[or, if there is a board of estimate in a city, then the board of esti-
mate,] may by resolution determine that specifically described real
property owned by the county, city, town or village is not required for
use by such county, city, town or village and authorize the county,
city, town or village to sell or lease such real property to a local
development corporation incorporated or reincorporated under this arti-
cle; provided, however, that: (I) title to such land be not declared
inalienable as a forest preserve or a parkland; AND (II) THAT NO SUCH
SALE OR LEASE SHALL HAVE AS A PURPOSE THE DIRECT OR INDIRECT FINANCING
OVER A PERIOD OF TIME OF THE OPERATIONS OF THE COUNTY, CITY, TOWN OR
VILLAGE, OR THE ACQUISITION OR IMPROVEMENT OF AN ASSET BY OR FOR THE USE
OF THE COUNTY, CITY, TOWN OR VILLAGE.
(2) Notwithstanding the provisions of any general, special or local
law, charter or ordinance to the contrary, such sale or lease may be
made without appraisal, public notice, (except as provided in subpara-
graph (4)) or public bidding for [such price or rental] FAIR AND
ADEQUATE CONSIDERATION and upon such OTHER terms as may be agreed upon
between the county, city, town or village and said local development
corporation; provided, however, that in case of a lease the term may not
exceed ninety-nine years and provided, further, that in cities having a
population of one million or more, no such sale or lease shall be made
without the approval of a majority of the members of the borough
[improvement] board of the borough in which such real property is
located.
(3) Before any sale or lease to a local development corporation
incorporated or reincorporated under this article shall be authorized, a
public hearing shall be held by the local legislative body[, or by the
board of estimate, as the case may be,] to consider the proposed sale or
lease.
(4) Notice of such hearing shall be published at least ten days
before the date set for the hearing in such publication and in such
manner as may be designated by the local legislative body[, or the board
of estimate as the case may be]. SUCH NOTICE SHALL INCLUDE A DESCRIPTION
OF THE REAL PROPERTY PROPOSED TO BE SOLD OR LEASED, AND A STATEMENT OF
A. 3631 5
(I) THE ESTIMATED FAIR MARKET VALUE OF THE REAL PROPERTY PROPOSED TO BE
SOLD OR LEASED, (II) THE CONSIDERATION TO BE RECEIVED BY THE COUNTY,
CITY, TOWN OR VILLAGE ON ACCOUNT OF SUCH SALE OR LEASE, AND (III) A
STATEMENT OF THE INTENDED USE OR DISPOSITION OF SUCH REAL PROPERTY BY
THE LOCAL DEVELOPMENT CORPORATION.
(5) A local development corporation, incorporated or reincorporated
under this section, which purchases or leases real property from a coun-
ty, city, town or village, shall not, without the written approval of
the county, city, town or village, use such real property for any
purpose except the purposes set forth in the certificate of incorpo-
ration or reincorporation of said local development corporation. In the
event such real property is used in violation of the restrictions of
this paragraph, the attorney-general may bring an action or special
proceeding to enjoin the unauthorized use.
(D-1) CONTRACTS WITH MUNICIPALITIES.
ANY CONTRACT OR OTHER AGREEMENT BETWEEN A LOCAL DEVELOPMENT CORPO-
RATION AND A MUNICIPALITY SHALL: (I) PROVIDE FOR THE MUNICIPALITY TO
RECEIVE FAIR AND ADEQUATE CONSIDERATION, (II) BE SUBJECT TO THE REQUIRE-
MENTS OF ARTICLE FIVE-A OF THE GENERAL MUNICIPAL LAW, (III) EXCEPT FOR A
REAL PROPERTY LEASE AGREEMENT, HAVE A TERM NOT TO EXCEED FIVE YEARS,
SUBJECT TO ONE OR MORE RENEWALS FOR A TERM NOT TO EXCEED FIVE YEARS UPON
THE MUTUAL CONSENT OF THE PARTIES, AND (IV) BE MADE FOR A PROPER MUNICI-
PAL PURPOSE, WHICH SHALL NOT INCLUDE THE DIRECT OR INDIRECT FINANCING
OVER A PERIOD OF TIME OF THE MUNICIPALITY'S OPERATIONS OR THE ACQUISI-
TION OR IMPROVEMENT OF AN ASSET BY OR FOR THE USE OF THE MUNICIPALITY.
(i) Effect of section.
Corporations incorporated or reincorporated under this section shall
be organized and operated exclusively for the purposes set forth in
paragraph (a), shall have, in addition to the powers otherwise conferred
by law, the powers conferred by paragraph (c) and shall be subject to
all the restrictions and limitations imposed by [paragraph] PARAGRAPHS
(C), (D), (D-1), (e) and [paragraph] (g). In so far as the provisions
of this section are inconsistent with the provisions of any other law,
general or special, the provisions of this section shall be controlling
as to corporations incorporated or reincorporated hereunder.
S 9. This act shall take effect immediately and shall apply to any
transaction occurring on or after such effective date.