senate Bill S3449A

2013-2014 Legislative Session

Enacts the corporate accountability for tax expenditures act

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Senate Actions - UPPERCASE
Jan 24, 2014 print number 3449a
amend and recommit to corporations, authorities and commissions
Jan 08, 2014 referred to corporations, authorities and commissions
Feb 01, 2013 referred to corporations, authorities and commissions

Bill Amendments

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S3449 - Bill Details

See Assembly Version of this Bill:
A2062A
Current Committee:
Law Section:
Business Corporation Law
Laws Affected:
Add Art 14 §§1401 - 1405, BC L; add Art 10-E §§3980 - 3984, Pub Auth L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S446A, A5920A
2009-2010: S750, A557

S3449 - Bill Texts

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Enacts the corporate accountability for tax expenditures act; standardizes applications for state development assistance for empire zone assistance and industrial development agency assistance; requires submission of certain development assistance agreements to the department of taxation and finance; requires recipients of certain development assistance to submit progress reports which include certain information and disclosures; makes certain recapture provisions; and defines relevant terms.

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BILL NUMBER:S3449

TITLE OF BILL: An act to amend the business corporation law and the
public authorities law, in relation to enacting the "corporate account-
ability for tax expenditures act"

PURPOSE: To provide a comprehensive record of all economic development
incentives that are entered into between state entities and businesses
in order for the Legislature and the Governor to make well informed
decisions about tax expenditures.

SUMMARY OF PROVISIONS: Creates the State Corporate Accountability for
Tax Expenditures Act. Provides that State economic assistance provided
by any state agency, public authority and/or public benefit corporation,
as an incentive to a business organization must be based on the terms of
a written incentive agreement between the department and the business
organization. Every agreement must identify the specific State economic
assistance to be provided to the business organization during the term
of the agreement and lists terms the agreement must contain. Provides
that State economic assistance incentive agreements must provide that if
a business organization either fails to make the requisite level of
capital investment in the project or fails to create or retain the spec-
ified number of jobs within the specified time frame, as provided under
the Act authorizing the State economic assistance, the business organ-
ization shall be deemed to no longer qualify for the State economic
assistance. Provides that the full content of all written incentive
agreements are to be published.

EXISTING LAW: None.

JUSTIFICATION: Every year, New York State spends billions of dollars on
economic development incentives and subsidies, mostly for large busi-
nesses. These subsidies take many forms: corporate income tax credits,
property tax abatements, low-interest loans, empire zone credits,
rebates, utility rate reductions, deferrals on taxes that would other
wise be paid, incentives to invest in research and development, training
grants, land site preparation and infrastructure financing. In return,
companies promise economic development, especially the creation of new
jobs and/or promise assistance to lower income and or elderly New York-
ers.

There is currently no comprehensive system of standards or oversight for
the distribution of economic development subsidies and incentives.

Because these subsidies are usually offered through off-budget public
authorities (of which there are more than 600 in New York State) or as
tax expenditures built in the State budget, but rarely approved as free-
standing legislation, decisions about the allocation of economic incen-
tives and evaluation of the economic benefits to residents of New York
State provided by those incentives are not subject to significant public
or legislative scrutiny or review. In fact, it is currently not possible

for New York State to accurately calculate the cost effectiveness of
these incentives, and once granted, measures initiated in the name of
economic development are seldom audited nor do they sunset, especially
tax breaks.

The state's structural budget problems mean that we must ensure public
transparency and ongoing review of expended dollars and lost State
revenues. We need to evaluate whether these models are working, what
benefits they are providing in comparison to other proposed uses of
state funds and the impact of inequities in our tax. policies due to the
use industry specific tax expenditures. We also need to exercise due
diligence through legislative and public oversight to make sure that
programs are run efficiently and that the state gets the best return for
the public for each state dollar. Dollars spent on economic development
incentives and tax breaks should be reviewed with the same degree of
scrutiny as dollars spent on all other government programs.

Many of the corporate tax expenditures were enacted for the purpose of
encouraging investment and job creation in New York, however, the effi-
cacy of the expenditures have yet to be analyzed and measured. By having
the Tax Department submit a report on all the State's tax expenditures,
credits, deductions, exclusions, exemptions or any other tax benefits to
the Senate, Assembly and the Governor, informed decisions can be made
based on the efficacy of the existing programs.

Absent this legislation, there are very real economic costs to the state
of New York. All too frequently, the state has provided subsidies, loans
and tax breaks to companies that then failed to create jobs as promised.
Companies such as Kodak, General Electric, Nine West and Rubbermaid all
laid off large numbers of employees after receiving state incentives
through the Empire State Development corporation. Other major companies,
such as Merrill Lynch and Bausch and Lomb, have significantly cut their
workforce after taking incentives for increasing employment.

These cases are hardly unique - a 1997 study by former state Senator
Franz Leichter discovered that companies receiving state economic incen-
tives at that time actually had a net loss of 1,765 jobs during the
previous year. More recent data indicates similar trends. According to
the Empire State Development Corporation, companies receiving incentives
for additional job creation suffered a net loss of 3,316 jobs in 2002.
New York State simply cannot afford to be giving money to companies that
are not providing real economic benefits to the state.

In addition to real job creation, companies should be expected to have a
record of good corporate citizenship if they are going to receive public
support. Currently there are no such standards. If subsidies are really
going to benefit the people of New York, the businesses that receive
them should be required to pay living wages, avoid criminal activity,
and work with the communities in which they are located.

FISCAL IMPLICATIONS: Increase in cost for additional audit equipment.

LOCAL FISCAL IMPLICATIONS: Increase in cost for additional audit equip-
ment.

EFFECTIVE DATE: This act shall take effect on the one hundred twentieth
day after it shall have become a law.

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

                                  3449

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 1, 2013
                               ___________

Introduced  by  Sens. KRUEGER, PARKER -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Corporations,
  Authorities and Commissions

AN  ACT to amend the business corporation law and the public authorities
  law, in relation to enacting the  "corporate  accountability  for  tax
  expenditures act"

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

  Section 1. Short title.  This act shall be known and may be  cited  as
the "corporate accountability for tax expenditures act".
  S  2.  The business corporation law is amended by adding a new article
14 to read as follows:
                                ARTICLE 14
              CORPORATE ACCOUNTABILITY FOR TAX EXPENDITURES
SECTION 1401. DEFINITIONS.
        1402. UNIFIED ECONOMIC DEVELOPMENT BUDGET.
        1403. STANDARDIZED APPLICATIONS FOR  STATE  DEVELOPMENT  ASSIST-
                ANCE.
        1404. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.
        1405. RECAPTURE.
S 1401. DEFINITIONS.
  AS USED IN THIS ARTICLE:
  (A) "BASE YEARS" MEANS THE FIRST TWO COMPLETE CALENDAR YEARS FOLLOWING
THE EFFECTIVE DATE OF A RECIPIENT RECEIVING DEVELOPMENT ASSISTANCE.
  (B) "DATE OF ASSISTANCE" MEANS THE COMMENCEMENT DATE OF THE ASSISTANCE
AGREEMENT,  WHICH DATE TRIGGERS THE PERIOD DURING WHICH THE RECIPIENT IS
OBLIGATED TO CREATE OR  RETAIN  JOBS  AND  CONTINUE  OPERATIONS  AT  THE
SPECIFIC PROJECT SITE.
  (C)  "DEFAULT"  MEANS  THAT  A  RECIPIENT  HAS  NOT  ACHIEVED  ITS JOB
CREATION, JOB RETENTION, OR WAGE OR BENEFIT GOALS, AS APPLICABLE, DURING
THE PRESCRIBED PERIOD THEREFOR.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00902-01-3

S. 3449                             2

  (D) "DEPARTMENT" MEANS, UNLESS  OTHERWISE  NOTED,  THE  DEPARTMENT  OF
TAXATION AND FINANCE OR ANY SUCCESSOR AGENCY.
  (E)  "DEVELOPMENT ASSISTANCE" MEANS (1) TAX CREDITS AND TAX EXEMPTIONS
(OTHER THAN GIVEN UNDER TAX INCREMENT FINANCING) GIVEN AS  AN  INCENTIVE
TO  A  RECIPIENT  BUSINESS  ORGANIZATION  PURSUANT TO AN INITIAL CERTIF-
ICATION OR AN INITIAL DESIGNATION MADE BY THE DEPARTMENT UNDER  ARTICLES
EIGHTEEN-A OR EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW;
  (2)  ALL SUCCESSOR AND SUBSEQUENT PROGRAMS AND TAX CREDITS DESIGNED TO
PROMOTE LARGE BUSINESS RELOCATIONS AND EXPANSIONS. "DEVELOPMENT  ASSIST-
ANCE"  DOES  NOT  INCLUDE  TAX  INCREMENT FINANCING, ASSISTANCE PROVIDED
UNDER ARTICLE EIGHTEEN-A OR EIGHTEEN-B  OF  THE  GENERAL  MUNICIPAL  LAW
PURSUANT  TO  LOCAL  ORDINANCE, PARTICIPATION LOANS, OR FINANCIAL TRANS-
ACTIONS  THROUGH  STATUTORILY  AUTHORIZED  FINANCIAL  INTERMEDIARIES  IN
SUPPORT  OF  SMALL BUSINESS LOANS AND INVESTMENTS OR GIVEN IN CONNECTION
WITH THE DEVELOPMENT OF AFFORDABLE HOUSING.
  (F) "DEVELOPMENT ASSISTANCE AGREEMENT" MEANS ANY AGREEMENT EXECUTED BY
THE STATE GRANTING BODY AND THE RECIPIENT SETTING FORTH  THE  TERMS  AND
CONDITIONS  OF  DEVELOPMENT  ASSISTANCE  TO BE PROVIDED TO THE RECIPIENT
CONSISTENT  WITH  THE  FINAL  APPLICATION  FOR  DEVELOPMENT  ASSISTANCE,
INCLUDING  BUT  NOT  LIMITED TO THE DATE OF ASSISTANCE, SUBMITTED TO AND
APPROVED BY THE STATE GRANTING BODY.
  (G) "FULL-TIME, PERMANENT JOB" MEANS A JOB IN WHICH THE  NEW  EMPLOYEE
WORKS  FOR  THE  RECIPIENT  AT  A RATE OF AT LEAST THIRTY-FIVE HOURS PER
WEEK.
  (H) "NEW EMPLOYEE" MEANS A FULL-TIME, PERMANENT EMPLOYEE  WHO  REPRES-
ENTS  A  NET  INCREASE IN THE NUMBER OF THE RECIPIENT'S EMPLOYEES STATE-
WIDE. "NEW EMPLOYEE" INCLUDES AN EMPLOYEE WHO PREVIOUSLY  FILLED  A  NEW
EMPLOYEE POSITION WITH THE RECIPIENT WHO WAS REHIRED OR CALLED BACK FROM
A LAYOFF THAT OCCURS DURING OR FOLLOWING THE BASE YEARS.
  THE TERM "NEW EMPLOYEE" DOES NOT INCLUDE ANY OF THE FOLLOWING:
  (1) AN EMPLOYEE OF THE RECIPIENT WHO PERFORMS A JOB THAT WAS PREVIOUS-
LY  PERFORMED  BY ANOTHER EMPLOYEE IN THIS STATE, IF THAT JOB EXISTED IN
THIS STATE FOR AT LEAST SIX MONTHS BEFORE HIRING THE EMPLOYEE.
  (2) A CHILD, GRANDCHILD, PARENT, OR SPOUSE, OTHER THAN A SPOUSE WHO IS
LEGALLY SEPARATED FROM THE INDIVIDUAL,  OF  ANY  INDIVIDUAL  WHO  HAS  A
DIRECT  OR  INDIRECT  OWNERSHIP INTEREST OF AT LEAST FIVE PERCENT IN THE
PROFITS, CAPITAL, OR VALUE OF ANY MEMBER OF THE RECIPIENT.
  (I) "PART-TIME JOB" MEANS A JOB IN WHICH THE NEW  EMPLOYEE  WORKS  FOR
THE RECIPIENT AT A RATE OF LESS THAN THIRTY-FIVE HOURS PER WEEK.
  (J)  "RECIPIENT" MEANS ANY BUSINESS THAT RECEIVES ECONOMIC DEVELOPMENT
ASSISTANCE. A BUSINESS IS ANY CORPORATION,  LIMITED  LIABILITY  COMPANY,
PARTNERSHIP,  JOINT  VENTURE, ASSOCIATION, SOLE PROPRIETORSHIP, OR OTHER
LEGALLY RECOGNIZED ENTITY.
  (K) "RETAINED  EMPLOYEE"  MEANS  ANY  EMPLOYEE  DEFINED  AS  HAVING  A
FULL-TIME  OR  FULL-TIME EQUIVALENT JOB PRESERVED AT A SPECIFIC FACILITY
OR SITE, THE CONTINUANCE OF WHICH IS THREATENED BY A SPECIFIC AND DEMON-
STRABLE THREAT, WHICH SHALL BE SPECIFIED IN THE APPLICATION FOR DEVELOP-
MENT ASSISTANCE.
  (L) "SPECIFIC PROJECT SITE" MEANS THAT DISTINCT  OPERATIONAL  UNIT  TO
WHICH ANY DEVELOPMENT ASSISTANCE IS APPLIED.
  (M)  "STATE  GRANTING  BODY"  MEANS  THE  DEPARTMENT,  ANY OTHER STATE
DEPARTMENT OR STATE AGENCY THAT PROVIDES DEVELOPMENT ASSISTANCE THAT HAS
REPORTING REQUIREMENTS UNDER THIS ARTICLE, AND ANY SUCCESSOR AGENCIES TO
ANY OF THE PRECEDING.
  (N) "TEMPORARY JOB" MEANS A JOB IN WHICH THE NEW EMPLOYEE IS HIRED FOR
A SPECIFIC DURATION OF TIME OR SEASON.

S. 3449                             3

  (O) "VALUE OF ASSISTANCE" MEANS THE FACE VALUE OF ANY FORM OF DEVELOP-
MENT ASSISTANCE.
S 1402. UNIFIED ECONOMIC DEVELOPMENT BUDGET.
  (A)  FOR EACH STATE FISCAL YEAR ENDING ON OR AFTER JUNE THIRTIETH, TWO
THOUSAND FOURTEEN, THE DEPARTMENT SHALL SUBMIT AN ANNUAL UNIFIED ECONOM-
IC DEVELOPMENT BUDGET TO THE GOVERNOR, SENATE AND ASSEMBLY. THE  UNIFIED
ECONOMIC  DEVELOPMENT  BUDGET SHALL BE DUE WITHIN THREE MONTHS AFTER THE
END OF THE FISCAL YEAR, AND  SHALL  PRESENT  ALL  TYPES  OF  DEVELOPMENT
ASSISTANCE GRANTED DURING THE PRIOR FISCAL YEAR, INCLUDING:
  (1) THE AGGREGATE AMOUNT OF UNCOLLECTED OR DIVERTED STATE TAX REVENUES
RESULTING  FROM EACH TYPE OF DEVELOPMENT ASSISTANCE PROVIDED PURSUANT TO
LAW, AS REPORTED TO THE DEPARTMENT  ON  TAX  RETURNS  FILED  DURING  THE
FISCAL YEAR.
  (2) ALL STATE DEVELOPMENT ASSISTANCE.
  (B)  ALL  DATA  CONTAINED  IN  THE UNIFIED ECONOMIC DEVELOPMENT BUDGET
PRESENTED TO THE GOVERNOR, SENATE AND ASSEMBLY SHALL BE FULLY SUBJECT TO
THE FREEDOM OF INFORMATION ACT.
  (C) THE DEPARTMENT SHALL SUBMIT A REPORT OF THE  AMOUNTS  IN  SUBPARA-
GRAPH  ONE OF PARAGRAPH (A) OF THIS SECTION TO THE DEPARTMENT, WHICH MAY
APPEND SUCH REPORT TO THE UNIFIED  ECONOMIC  DEVELOPMENT  BUDGET  RATHER
THAN SEPARATELY REPORTING SUCH AMOUNTS.
S 1403. STANDARDIZED APPLICATIONS FOR STATE DEVELOPMENT ASSISTANCE.
  (A)  ALL  FINAL  APPLICATIONS SUBMITTED TO THE DEPARTMENT OR ANY OTHER
STATE GRANTING BODY REQUESTING DEVELOPMENT ASSISTANCE SHALL CONTAIN,  AT
A MINIMUM:
  (1)  AN APPLICATION TRACKING NUMBER THAT IS SPECIFIC TO BOTH THE STATE
GRANTING AGENCY AND TO EACH APPLICATION.
  (2) THE OFFICE MAILING ADDRESS, OFFICE  TELEPHONE  NUMBER,  AND  CHIEF
OFFICER OF THE GRANTING BODY.
  (3)  THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF THE
CHIEF OFFICER OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR  THE  SPECIFIC
PROJECT SITE FOR WHICH DEVELOPMENT ASSISTANCE IS REQUESTED.
  (4)  THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC PROJECT
SITE ON THE DATE THAT THE APPLICATION IS SUBMITTED TO THE STATE GRANTING
BODY, INCLUDING THE NUMBER OF FULL-TIME, PERMANENT JOBS, THE  NUMBER  OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.
  (5)  THE  TYPE OF DEVELOPMENT ASSISTANCE AND VALUE OF ASSISTANCE BEING
REQUESTED.
  (6) THE NUMBER OF JOBS TO BE CREATED AND RETAINED OR BOTH CREATED  AND
RETAINED  BY  THE  APPLICANT  AS A RESULT OF THE DEVELOPMENT ASSISTANCE,
INCLUDING THE  NUMBER  OF  FULL-TIME,  PERMANENT  JOBS,  THE  NUMBER  OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.
  (7)  A  DETAILED  LIST  OF  THE  OCCUPATION OR JOB CLASSIFICATIONS AND
NUMBER OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN  FULL-TIME,
PERMANENT  JOBS,  A  SCHEDULE  OF  ANTICIPATED STARTING DATES OF THE NEW
HIRES AND THE ANTICIPATED AVERAGE WAGE BY OCCUPATION OR JOB  CLASSIFICA-
TION  AND  TOTAL  PAYROLL  TO  BE CREATED AS A RESULT OF THE DEVELOPMENT
ASSISTANCE.
  (8) A LIST OF ALL OTHER  FORMS  OF  DEVELOPMENT  ASSISTANCE  THAT  THE
APPLICANT  IS  REQUESTING  FOR THE SPECIFIC PROJECT SITE AND THE NAME OF
EACH STATE GRANTING BODY FROM WHICH THAT DEVELOPMENT ASSISTANCE IS BEING
REQUESTED.
  (9) A NARRATIVE, IF NECESSARY, DESCRIBING WHY THE DEVELOPMENT  ASSIST-
ANCE IS NEEDED AND HOW THE APPLICANT'S USE OF THE DEVELOPMENT ASSISTANCE
MAY REDUCE EMPLOYMENT AT ANY SITE IN NEW YORK.

S. 3449                             4

  (10)  A  CERTIFICATION BY THE CHIEF OFFICER OF THE APPLICANT OR HIS OR
HER AUTHORIZED DESIGNEE THAT THE INFORMATION CONTAINED IN  THE  APPLICA-
TION  SUBMITTED  TO  THE  GRANTING BODY CONTAINS NO KNOWING MISREPRESEN-
TATION OF MATERIAL FACTS UPON WHICH ELIGIBILITY FOR DEVELOPMENT  ASSIST-
ANCE IS BASED.
  (B)  EVERY STATE GRANTING BODY EITHER SHALL COMPLETE, OR SHALL REQUIRE
THE APPLICANT TO COMPLETE, AN APPLICATION FORM THAT  MEETS  THE  MINIMUM
REQUIREMENTS  AS  PRESCRIBED  IN  THIS  SECTION  EACH  TIME AN APPLICANT
APPLIES FOR DEVELOPMENT ASSISTANCE COVERED BY THIS ARTICLE.
  (C) THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY  ANY  STANDARD-
IZED  APPLICATION  FOR STATE DEVELOPMENT ASSISTANCE REQUIRED UNDER PARA-
GRAPH (A) OF THIS SECTION FOR ANY GRANTS THAT ARE NOT GIVEN AS AN INCEN-
TIVE TO A RECIPIENT BUSINESS ORGANIZATION.
S 1404. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.
  (A) BEGINNING FEBRUARY FIRST, TWO THOUSAND FIFTEEN AND EACH YEAR THER-
EAFTER, EVERY STATE GRANTING BODY SHALL SUBMIT TO THE DEPARTMENT  COPIES
OF  ALL  DEVELOPMENT ASSISTANCE AGREEMENTS THAT IT APPROVED IN THE PRIOR
CALENDAR YEAR.
  (B) FOR EACH DEVELOPMENT ASSISTANCE AGREEMENT FOR WHICH  THE  DATE  OF
ASSISTANCE HAS OCCURRED IN THE PRIOR CALENDAR YEAR, EACH RECIPIENT SHALL
SUBMIT  TO  THE DEPARTMENT A PROGRESS REPORT THAT SHALL INCLUDE, BUT NOT
BE LIMITED TO, THE FOLLOWING:
  (1) THE APPLICATION TRACKING NUMBER.
  (2) THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF  THE
CHIEF OFFICER OF THE GRANTING BODY.
  (3)  THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF THE
CHIEF OFFICER OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR  THE  SPECIFIC
PROJECT  SITE  FOR  WHICH THE DEVELOPMENT ASSISTANCE WAS APPROVED BY THE
STATE GRANTING BODY.
  (4) THE TYPE OF DEVELOPMENT ASSISTANCE PROGRAM AND VALUE OF ASSISTANCE
THAT WAS APPROVED BY THE STATE GRANTING BODY.
  (5) THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC  PROJECT
SITE  ON THE DATE THAT THE APPLICATION WAS SUBMITTED TO THE STATE GRANT-
ING BODY AND THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT  THE  SPECIFIC
PROJECT  SITE  ON  THE  DATE  OF  THE  REPORT,  INCLUDING  THE NUMBER OF
FULL-TIME, PERMANENT JOBS, THE NUMBER OF PART-TIME JOBS, AND THE  NUMBER
OF TEMPORARY JOBS, AND A COMPUTATION OF THE GAIN OR LOSS OF JOBS IN EACH
CATEGORY.
  (6)  THE  NUMBER OF NEW EMPLOYEES AND RETAINED EMPLOYEES THE APPLICANT
STATED IN ITS DEVELOPMENT ASSISTANCE AGREEMENT, IF ANY, IF NOT, THEN  IN
ITS  APPLICATION,  WOULD BE CREATED BY THE DEVELOPMENT ASSISTANCE BROKEN
DOWN BY FULL-TIME, PERMANENT, PART-TIME, AND TEMPORARY.
  (7) A SWORN DECLARATION OF WHETHER THE RECIPIENT IS IN COMPLIANCE WITH
THE DEVELOPMENT ASSISTANCE AGREEMENT.
  (8) A DETAILED LIST OF  THE  OCCUPATION  OR  JOB  CLASSIFICATIONS  AND
NUMBER  OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN FULL-TIME,
PERMANENT JOBS, A SCHEDULE OF ANTICIPATED  STARTING  DATES  OF  THE  NEW
HIRES  AND  THE  ACTUAL AVERAGE WAGE BY OCCUPATION OR JOB CLASSIFICATION
AND TOTAL PAYROLL TO BE CREATED AS A RESULT OF THE  DEVELOPMENT  ASSIST-
ANCE.
  (9)  A  NARRATIVE, IF NECESSARY, DESCRIBING HOW THE RECIPIENT'S USE OF
THE DEVELOPMENT ASSISTANCE DURING THE REPORTING YEAR HAS REDUCED EMPLOY-
MENT AT ANY SITE IN NEW YORK.
  (10) A CERTIFICATION BY THE CHIEF OFFICER OF THE APPLICANT OR  HIS  OR
HER  AUTHORIZED  DESIGNEE  THAT  THE  INFORMATION IN THE PROGRESS REPORT

S. 3449                             5

CONTAINS NO KNOWING  MISREPRESENTATION  OF  MATERIAL  FACTS  UPON  WHICH
ELIGIBILITY FOR DEVELOPMENT ASSISTANCE IS BASED.
  (C)  THE  STATE  GRANTING BODY, OR A SUCCESSOR AGENCY, SHALL HAVE FULL
AUTHORITY TO VERIFY INFORMATION CONTAINED IN  THE  RECIPIENT'S  PROGRESS
REPORT, INCLUDING THE AUTHORITY TO INSPECT THE SPECIFIC PROJECT SITE AND
INSPECT THE RECORDS OF THE RECIPIENT THAT ARE SUBJECT TO THE DEVELOPMENT
ASSISTANCE AGREEMENT.
  (D) BY JUNE FIRST, TWO THOUSAND FIFTEEN AND BY JUNE FIRST OF EACH YEAR
THEREAFTER,  THE DEPARTMENT SHALL COMPILE AND PUBLISH ALL DATA IN ALL OF
THE PROGRESS REPORTS IN BOTH WRITTEN AND ELECTRONIC FORM.
  (E) IF A RECIPIENT OF DEVELOPMENT  ASSISTANCE  FAILS  TO  COMPLY  WITH
PARAGRAPH (B) OF THIS SECTION, THE DEPARTMENT SHALL, WITHIN TWENTY WORK-
ING DAYS AFTER THE REPORTING SUBMITTAL DEADLINES SET FORTH IN SUCH PARA-
GRAPH (B), SUSPEND WITHIN THIRTY-THREE WORKING DAYS ANY CURRENT DEVELOP-
MENT  ASSISTANCE  TO  SUCH  RECIPIENT  UNDER  ITS  CONTROL, AND SHALL BE
PROHIBITED FROM COMPLETING ANY CURRENT OR PROVIDING ANY FUTURE  DEVELOP-
MENT  ASSISTANCE  UNTIL  IT  RECEIVES PROOF THAT SUCH RECIPIENT HAS COME
INTO COMPLIANCE WITH THE REQUIREMENTS OF PARAGRAPH (B) OF THIS SECTION.
  (F) THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY THE INFORMATION
REQUIRED IN THE PROGRESS REPORT REQUIRED UNDER  PARAGRAPH  (B)  OF  THIS
SECTION  CONSISTENT  WITH THE DISCLOSURE PURPOSE OF THIS SECTION FOR ANY
GRANTS THAT ARE NOT GIVEN AS AN INCENTIVE TO A RECIPIENT BUSINESS ORGAN-
IZATION.
S 1405. RECAPTURE.
  (A) ALL DEVELOPMENT ASSISTANCE AGREEMENTS SHALL CONTAIN, AT A MINIMUM,
THE FOLLOWING RECAPTURE PROVISIONS:
  (1) THE RECIPIENT MUST (I) MAKE THE LEVEL OF CAPITAL INVESTMENT IN THE
ECONOMIC DEVELOPMENT PROJECT SPECIFIED  IN  THE  DEVELOPMENT  ASSISTANCE
AGREEMENT; (II) CREATE OR RETAIN, OR BOTH, THE REQUISITE NUMBER OF JOBS,
PAYING  NOT LESS THAN SPECIFIED WAGES FOR THE CREATED AND RETAINED JOBS,
WITHIN AND FOR THE DURATION OF THE TIME PERIOD SPECIFIED IN THE DEVELOP-
MENT ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT.
  (2) IF THE RECIPIENT FAILS TO CREATE OR RETAIN THE REQUISITE NUMBER OF
JOBS WITHIN AND FOR  THE  TIME  PERIOD  SPECIFIED,  IN  THE  DEVELOPMENT
ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIP-
IENT SHALL BE DEEMED TO NO LONGER QUALIFY FOR THE STATE ECONOMIC ASSIST-
ANCE AND THE APPLICABLE RECAPTURE PROVISIONS SHALL TAKE EFFECT.
  (3) IF THE RECIPIENT RECEIVES STATE ECONOMIC ASSISTANCE IN THE FORM OF
AN EMPIRE ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL  LAW OR AN INDUSTRIAL DEVELOPMENT ZONE DESIGNATION PURSUANT TO
ARTICLE EIGHTEEN-A OF THE GENERAL MUNICIPAL LAW AND THE RECIPIENT  FAILS
TO  CREATE  OR RETAIN THE REQUISITE NUMBER OF JOBS, AS DETERMINED BY THE
DEVELOPMENT ASSISTANCE AGREEMENT WITHIN THE REQUISITE  PERIOD  OF  TIME,
THE  RECIPIENT  SHALL BE REQUIRED TO PAY TO THE STATE THE FULL AMOUNT OF
THE STATE TAX EXEMPTION THAT IT RECEIVED AS  A  RESULT  OF  SUCH  DESIG-
NATION.
  (4)  IF  THE  RECIPIENT RECEIVES A GRANT OR LOAN PURSUANT TO AN EMPIRE
ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL
LAW OR AN INDUSTRIAL DEVELOPMENT ZONE DESIGNATION  PURSUANT  TO  ARTICLE
EIGHTEEN-A  OF  THE  GENERAL  MUNICIPAL  LAW  AND THE RECIPIENT FAILS TO
CREATE OR RETAIN THE REQUISITE NUMBER OF JOBS  FOR  THE  REQUISITE  TIME
PERIOD, AS PROVIDED IN THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIPI-
ENT  SHALL  BE  REQUIRED  TO REPAY TO THE STATE A PRO RATA AMOUNT OF THE
GRANT; THAT AMOUNT  SHALL  REFLECT  THE  PERCENTAGE  OF  THE  DEFICIENCY
BETWEEN  THE  REQUISITE  NUMBER OF JOBS TO BE CREATED OR RETAINED BY THE
RECIPIENT AND THE ACTUAL NUMBER OF SUCH JOBS IN EXISTENCE AS OF THE DATE

S. 3449                             6

THE DEPARTMENT DETERMINES THE RECIPIENT IS IN BREACH OF THE JOB CREATION
OR RETENTION COVENANTS CONTAINED IN THE  DEVELOPMENT  ASSISTANCE  AGREE-
MENT. IF THE RECIPIENT OF DEVELOPMENT ASSISTANCE UNDER SUCH DESIGNATIONS
CEASES OPERATIONS AT THE SPECIFIC PROJECT SITE DURING A FIVE YEAR PERIOD
COMMENCING ON THE DATE OF ASSISTANCE, THE RECIPIENT SHALL BE REQUIRED TO
REPAY  THE  ENTIRE AMOUNT OF THE GRANT OR TO ACCELERATE REPAYMENT OF THE
LOAN BACK TO THE STATE.
  (5) IF THE RECIPIENT RECEIVES A TAX CREDIT UNDER ARTICLE EIGHTEEN-A OR
EIGHTEEN-B OF THE GENERAL  MUNICIPAL  LAW,  THE  DEVELOPMENT  ASSISTANCE
AGREEMENT  SHALL  PROVIDE  THAT  (I)  IF  THE  NUMBER OF NEW OR RETAINED
EMPLOYEES FALLS BELOW THE REQUISITE NUMBER SET FORTH IN THE  DEVELOPMENT
ASSISTANCE AGREEMENT, THE ALLOWANCE OF THE CREDIT SHALL BE AUTOMATICALLY
SUSPENDED  UNTIL  THE  NUMBER  OF  NEW  AND RETAINED EMPLOYEES EQUALS OR
EXCEEDS THE REQUISITE NUMBER IN THE  DEVELOPMENT  ASSISTANCE  AGREEMENT;
(II)  IF  THE  RECIPIENT DISCONTINUES OPERATIONS AT THE SPECIFIC PROJECT
SITE DURING THE FIRST FIVE YEARS OF THE TERM OF THE DEVELOPMENT  ASSIST-
ANCE  AGREEMENT,  THE  RECIPIENT  SHALL FORFEIT ALL CREDITS TAKEN BY THE
RECIPIENT DURING SUCH FIVE YEAR PERIOD; AND (III)  IN  THE  EVENT  OF  A
REVOCATION  OR  SUSPENSION  OF THE CREDIT, THE DEPARTMENT SHALL INITIATE
PROCEEDINGS AGAINST THE RECIPIENT TO RECOVER WRONGFULLY  EXEMPTED  STATE
INCOME  TAXES  AND  THE RECIPIENT SHALL PROMPTLY REPAY TO THE DEPARTMENT
ANY WRONGFULLY EXEMPTED STATE INCOME  TAXES.  THE  FORFEITED  AMOUNT  OF
CREDITS  SHALL  BE  DEEMED ASSESSED ON THE DATE THE DEPARTMENT INITIATES
PROCEEDINGS AGAINST SUCH RECIPIENT  AND  THE  RECIPIENT  SHALL  PROMPTLY
REPAY TO THE DEPARTMENT ANY WRONGFULLY EXEMPTED STATE INCOME TAXES.
  (B)  THE  COMMISSIONER  OF  TAXATION  AND  FINANCE  MAY ELECT TO WAIVE
ENFORCEMENT OF ANY CONTRACTUAL PROVISION ARISING OUT OF THE  DEVELOPMENT
ASSISTANCE  AGREEMENT  REQUIRED  BY THIS ARTICLE BASED ON A FINDING THAT
THE WAIVER IS NECESSARY TO AVERT AN IMMINENT AND  DEMONSTRABLE  HARDSHIP
TO  THE  RECIPIENT  THAT  MAY  RESULT  IN SUCH RECIPIENT'S INSOLVENCY OR
DISCHARGE OF WORKERS. IF A WAIVER IS GRANTED, THE RECIPIENT SHALL  AGREE
TO  A  CONTRACTUAL  MODIFICATION, INCLUDING RECAPTURE PROVISIONS, TO THE
DEVELOPMENT ASSISTANCE AGREEMENT. THE EXISTENCE OF  ANY  WAIVER  GRANTED
PURSUANT  TO  PARAGRAPH (C) OF THIS SECTION, THE DATE OF THE GRANTING OF
SUCH WAIVER, AND A BRIEF SUMMARY OF THE REASONS SUPPORTING THE  GRANTING
OF SUCH WAIVER SHALL BE DISCLOSED CONSISTENT WITH THE PROVISIONS OF THIS
SECTION.
  (C)  BEGINNING JUNE FIRST, TWO THOUSAND FOURTEEN, THE DEPARTMENT SHALL
ANNUALLY COMPILE A REPORT ON THE OUTCOMES AND EFFECTIVENESS OF RECAPTURE
PROVISIONS BY PROGRAM, INCLUDING BUT  NOT  LIMITED  TO:  (I)  THE  TOTAL
NUMBER  OF  COMPANIES  THAT RECEIVE DEVELOPMENT ASSISTANCE AS DEFINED IN
THIS ARTICLE; (II) THE TOTAL NUMBER OF RECIPIENTS IN VIOLATION OF DEVEL-
OPMENT AGREEMENTS  WITH  THE  DEPARTMENT;  (III)  THE  TOTAL  NUMBER  OF
COMPLETED  RECAPTURE EFFORTS; (IV) THE TOTAL NUMBER OF RECAPTURE EFFORTS
INITIATED; AND (V) THE NUMBER OF WAIVERS GRANTED. SUCH REPORT  SHALL  BE
DISCLOSED  CONSISTENT  WITH  THE  PROVISIONS OF SECTION FOURTEEN HUNDRED
FOUR OF THIS ARTICLE.
  S 3. The public authorities law is amended by  adding  a  new  article
10-E to read as follows:
                               ARTICLE 10-E
              CORPORATE ACCOUNTABILITY FOR TAX EXPENDITURES
SECTION 3980. DEFINITIONS.
        3981. UNIFIED ECONOMIC DEVELOPMENT BUDGET.
        3982. STANDARDIZED  APPLICATIONS  FOR  STATE DEVELOPMENT ASSIST-
                ANCE.
        3983. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.

S. 3449                             7

        3984. RECAPTURE.
  S 3980. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "BASE YEARS" MEANS THE FIRST TWO COMPLETE CALENDAR YEARS FOLLOWING
THE EFFECTIVE DATE OF A RECIPIENT RECEIVING DEVELOPMENT ASSISTANCE.
  2. "DATE OF ASSISTANCE" MEANS THE COMMENCEMENT DATE OF THE  ASSISTANCE
AGREEMENT,  WHICH DATE TRIGGERS THE PERIOD DURING WHICH THE RECIPIENT IS
OBLIGATED TO CREATE OR  RETAIN  JOBS  AND  CONTINUE  OPERATIONS  AT  THE
SPECIFIC PROJECT SITE.
  3. "DEFAULT" MEANS THAT A RECIPIENT HAS NOT ACHIEVED ITS JOB CREATION,
JOB  RETENTION,  OR  WAGE  OR  BENEFIT  GOALS, AS APPLICABLE, DURING THE
PRESCRIBED PERIOD THEREFOR.
  4. "DEPARTMENT" MEANS, UNLESS OTHERWISE NOTED, THE DEPARTMENT OF TAXA-
TION AND FINANCE OR ANY SUCCESSOR AGENCY.
  5. "DEVELOPMENT ASSISTANCE" MEANS (A) TAX CREDITS AND  TAX  EXEMPTIONS
(OTHER  THAN  GIVEN UNDER TAX INCREMENT FINANCING) GIVEN AS AN INCENTIVE
TO A RECIPIENT PUBLIC AUTHORITY PURSUANT TO AN INITIAL CERTIFICATION  OR
AN  INITIAL DESIGNATION MADE BY THE DEPARTMENT UNDER ARTICLES EIGHTEEN-A
OR EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW;
  (B) ALL SUCCESSOR AND SUBSEQUENT PROGRAMS AND TAX CREDITS DESIGNED  TO
PROMOTE  LARGE BUSINESS RELOCATIONS AND EXPANSIONS. "DEVELOPMENT ASSIST-
ANCE" DOES NOT INCLUDE  TAX  INCREMENT  FINANCING,  ASSISTANCE  PROVIDED
UNDER  ARTICLE  EIGHTEEN-A  OR  EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW
PURSUANT TO LOCAL ORDINANCE, PARTICIPATION LOANS,  OR  FINANCIAL  TRANS-
ACTIONS  THROUGH  STATUTORILY  AUTHORIZED  FINANCIAL  INTERMEDIARIES  IN
SUPPORT OF SMALL BUSINESS LOANS AND INVESTMENTS OR GIVEN  IN  CONNECTION
WITH THE DEVELOPMENT OF AFFORDABLE HOUSING.
  6.  "DEVELOPMENT ASSISTANCE AGREEMENT" MEANS ANY AGREEMENT EXECUTED BY
THE STATE GRANTING BODY AND THE RECIPIENT SETTING FORTH  THE  TERMS  AND
CONDITIONS  OF  DEVELOPMENT  ASSISTANCE  TO BE PROVIDED TO THE RECIPIENT
CONSISTENT  WITH  THE  FINAL  APPLICATION  FOR  DEVELOPMENT  ASSISTANCE,
INCLUDING  BUT  NOT  LIMITED TO THE DATE OF ASSISTANCE, SUBMITTED TO AND
APPROVED BY THE STATE GRANTING BODY.
  7. "FULL-TIME, PERMANENT JOB" MEANS A JOB IN WHICH  THE  NEW  EMPLOYEE
WORKS  FOR  THE  RECIPIENT  AT  A RATE OF AT LEAST THIRTY-FIVE HOURS PER
WEEK.
  8.  "NEW EMPLOYEE" MEANS A FULL-TIME, PERMANENT EMPLOYEE  WHO  REPRES-
ENTS  A  NET  INCREASE IN THE NUMBER OF THE RECIPIENT'S EMPLOYEES STATE-
WIDE. "NEW EMPLOYEE" INCLUDES AN EMPLOYEE WHO PREVIOUSLY  FILLED  A  NEW
EMPLOYEE POSITION WITH THE RECIPIENT WHO WAS REHIRED OR CALLED BACK FROM
A LAYOFF THAT OCCURS DURING OR FOLLOWING THE BASE YEARS.
  THE TERM "NEW EMPLOYEE" DOES NOT INCLUDE ANY OF THE FOLLOWING:
  (A) AN EMPLOYEE OF THE RECIPIENT WHO PERFORMS A JOB THAT WAS PREVIOUS-
LY  PERFORMED  BY ANOTHER EMPLOYEE IN THIS STATE, IF THAT JOB EXISTED IN
THIS STATE FOR AT LEAST SIX MONTHS BEFORE HIRING THE EMPLOYEE.
  (B) A CHILD, GRANDCHILD, PARENT, OR SPOUSE, OTHER THAN A SPOUSE WHO IS
LEGALLY SEPARATED FROM THE INDIVIDUAL,  OF  ANY  INDIVIDUAL  WHO  HAS  A
DIRECT  OR  INDIRECT  OWNERSHIP INTEREST OF AT LEAST FIVE PERCENT IN THE
PROFITS, CAPITAL, OR VALUE OF ANY MEMBER OF THE RECIPIENT.
  9. "PART-TIME JOB" MEANS A JOB IN WHICH THE NEW EMPLOYEE WORKS FOR THE
RECIPIENT AT A RATE OF LESS THAN THIRTY-FIVE HOURS PER WEEK.
  10. "RECIPIENT" MEANS ANY PUBLIC AUTHORITY CREATED  PURSUANT  TO  THIS
CHAPTER  THAT  RECEIVES ECONOMIC DEVELOPMENT ASSISTANCE OR OTHER LEGALLY
RECOGNIZED ENTITY OF SUCH A PUBLIC AUTHORITY.
  11. "RETAINED  EMPLOYEE"  MEANS  ANY  EMPLOYEE  DEFINED  AS  HAVING  A
FULL-TIME  OR  FULL-TIME EQUIVALENT JOB PRESERVED AT A SPECIFIC FACILITY
OR SITE, THE CONTINUANCE OF WHICH IS THREATENED BY A SPECIFIC AND DEMON-

S. 3449                             8

STRABLE THREAT, WHICH SHALL BE SPECIFIED IN THE APPLICATION FOR DEVELOP-
MENT ASSISTANCE.
  12.  "SPECIFIC  PROJECT  SITE" MEANS THAT DISTINCT OPERATIONAL UNIT TO
WHICH ANY DEVELOPMENT ASSISTANCE IS APPLIED.
  13. "STATE GRANTING  BODY"  MEANS  THE  DEPARTMENT,  ANY  OTHER  STATE
DEPARTMENT OR STATE AGENCY THAT PROVIDES DEVELOPMENT ASSISTANCE THAT HAS
REPORTING REQUIREMENTS UNDER THIS ARTICLE, AND ANY SUCCESSOR AGENCIES TO
ANY OF THE PRECEDING.
  14. "TEMPORARY JOB" MEANS A JOB IN WHICH THE NEW EMPLOYEE IS HIRED FOR
A SPECIFIC DURATION OF TIME OR SEASON.
  15. "VALUE OF ASSISTANCE" MEANS THE FACE VALUE OF ANY FORM OF DEVELOP-
MENT ASSISTANCE.
  S 3981. UNIFIED ECONOMIC DEVELOPMENT BUDGET.  1. FOR EACH STATE FISCAL
YEAR  ENDING  ON  OR  AFTER  JUNE  THIRTIETH, TWO THOUSAND FOURTEEN, THE
DEPARTMENT SHALL SUBMIT AN ANNUAL UNIFIED ECONOMIC DEVELOPMENT BUDGET TO
THE GOVERNOR, SENATE AND  ASSEMBLY.  THE  UNIFIED  ECONOMIC  DEVELOPMENT
BUDGET  SHALL  BE  DUE  WITHIN  THREE MONTHS AFTER THE END OF THE FISCAL
YEAR, AND SHALL PRESENT ALL  TYPES  OF  DEVELOPMENT  ASSISTANCE  GRANTED
DURING THE PRIOR FISCAL YEAR, INCLUDING:
  (A) THE AGGREGATE AMOUNT OF UNCOLLECTED OR DIVERTED STATE TAX REVENUES
RESULTING  FROM EACH TYPE OF DEVELOPMENT ASSISTANCE PROVIDED PURSUANT TO
LAW, AS REPORTED TO THE DEPARTMENT  ON  TAX  RETURNS  FILED  DURING  THE
FISCAL YEAR.
  (B) ALL STATE DEVELOPMENT ASSISTANCE.
  2.  ALL  DATA  CONTAINED  IN  THE  UNIFIED ECONOMIC DEVELOPMENT BUDGET
PRESENTED TO THE GOVERNOR, SENATE AND ASSEMBLY SHALL BE FULLY SUBJECT TO
THE FREEDOM OF INFORMATION ACT.
  3. THE DEPARTMENT SHALL SUBMIT A REPORT OF THE  AMOUNTS  IN  PARAGRAPH
(A)  OF  SUBDIVISION  ONE  OF  THIS SECTION TO THE DEPARTMENT, WHICH MAY
APPEND SUCH REPORT TO THE UNIFIED  ECONOMIC  DEVELOPMENT  BUDGET  RATHER
THAN SEPARATELY REPORTING SUCH AMOUNTS.
  S  3982.  STANDARDIZED  APPLICATIONS FOR STATE DEVELOPMENT ASSISTANCE.
1. ALL FINAL APPLICATIONS SUBMITTED TO THE DEPARTMENT OR ANY OTHER STATE
GRANTING BODY REQUESTING DEVELOPMENT  ASSISTANCE  SHALL  CONTAIN,  AT  A
MINIMUM:
  (A)  AN APPLICATION TRACKING NUMBER THAT IS SPECIFIC TO BOTH THE STATE
GRANTING AGENCY AND TO EACH APPLICATION.
  (B) THE OFFICE MAILING ADDRESS, OFFICE  TELEPHONE  NUMBER,  AND  CHIEF
OFFICER OF THE GRANTING BODY.
  (C)  THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF THE
CHIEF OFFICER OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR  THE  SPECIFIC
PROJECT SITE FOR WHICH DEVELOPMENT ASSISTANCE IS REQUESTED.
  (D)  THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC PROJECT
SITE ON THE DATE THAT THE APPLICATION IS SUBMITTED TO THE STATE GRANTING
BODY, INCLUDING THE NUMBER OF FULL-TIME, PERMANENT JOBS, THE  NUMBER  OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.
  (E)  THE  TYPE OF DEVELOPMENT ASSISTANCE AND VALUE OF ASSISTANCE BEING
REQUESTED.
  (F) THE NUMBER OF JOBS TO BE CREATED AND RETAINED OR BOTH CREATED  AND
RETAINED  BY  THE  APPLICANT  AS A RESULT OF THE DEVELOPMENT ASSISTANCE,
INCLUDING THE  NUMBER  OF  FULL-TIME,  PERMANENT  JOBS,  THE  NUMBER  OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.
  (G)  A  DETAILED  LIST  OF  THE  OCCUPATION OR JOB CLASSIFICATIONS AND
NUMBER OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN  FULL-TIME,
PERMANENT  JOBS,  A  SCHEDULE  OF  ANTICIPATED STARTING DATES OF THE NEW
HIRES AND THE ANTICIPATED AVERAGE WAGE BY OCCUPATION OR JOB  CLASSIFICA-

S. 3449                             9

TION  AND  TOTAL  PAYROLL  TO  BE CREATED AS A RESULT OF THE DEVELOPMENT
ASSISTANCE.
  (H)  A  LIST  OF  ALL  OTHER  FORMS OF DEVELOPMENT ASSISTANCE THAT THE
APPLICANT IS REQUESTING FOR THE SPECIFIC PROJECT SITE AND  THE  NAME  OF
EACH STATE GRANTING BODY FROM WHICH THAT DEVELOPMENT ASSISTANCE IS BEING
REQUESTED.
  (I)  A NARRATIVE, IF NECESSARY, DESCRIBING WHY THE DEVELOPMENT ASSIST-
ANCE IS NEEDED AND HOW THE APPLICANT'S USE OF THE DEVELOPMENT ASSISTANCE
MAY REDUCE EMPLOYMENT AT ANY SITE IN NEW YORK.
  (J) A CERTIFICATION BY THE CHIEF OFFICER OF THE APPLICANT  OR  HIS  OR
HER  AUTHORIZED  DESIGNEE THAT THE INFORMATION CONTAINED IN THE APPLICA-
TION SUBMITTED TO THE GRANTING BODY  CONTAINS  NO  KNOWING  MISREPRESEN-
TATION  OF MATERIAL FACTS UPON WHICH ELIGIBILITY FOR DEVELOPMENT ASSIST-
ANCE IS BASED.
  2. EVERY STATE GRANTING BODY EITHER SHALL COMPLETE, OR  SHALL  REQUIRE
THE  APPLICANT  TO  COMPLETE, AN APPLICATION FORM THAT MEETS THE MINIMUM
REQUIREMENTS AS PRESCRIBED  IN  THIS  SECTION  EACH  TIME  AN  APPLICANT
APPLIES FOR DEVELOPMENT ASSISTANCE COVERED BY THIS ARTICLE.
  3. THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY ANY STANDARDIZED
APPLICATION  FOR STATE DEVELOPMENT ASSISTANCE REQUIRED UNDER SUBDIVISION
ONE OF THIS SECTION FOR ANY GRANTS THAT ARE NOT GIVEN AS AN INCENTIVE TO
A RECIPIENT PUBLIC AUTHORITY.
  S 3983. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.  1. BEGINNING  FEBRU-
ARY  FIRST,  TWO  THOUSAND FIFTEEN AND EACH YEAR THEREAFTER, EVERY STATE
GRANTING BODY SHALL SUBMIT TO THE DEPARTMENT COPIES OF  ALL  DEVELOPMENT
ASSISTANCE AGREEMENTS THAT IT APPROVED IN THE PRIOR CALENDAR YEAR.
  2.  FOR  EACH  DEVELOPMENT  ASSISTANCE AGREEMENT FOR WHICH THE DATE OF
ASSISTANCE HAS OCCURRED IN THE PRIOR CALENDAR YEAR, EACH RECIPIENT SHALL
SUBMIT TO THE DEPARTMENT A PROGRESS REPORT THAT SHALL INCLUDE,  BUT  NOT
BE LIMITED TO, THE FOLLOWING:
  (A) THE APPLICATION TRACKING NUMBER.
  (B)  THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF THE
CHIEF OFFICER OF THE GRANTING BODY.
  (C) THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF  THE
CHIEF  OFFICER  OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR THE SPECIFIC
PROJECT SITE FOR WHICH THE DEVELOPMENT ASSISTANCE WAS  APPROVED  BY  THE
STATE GRANTING BODY.
  (D) THE TYPE OF DEVELOPMENT ASSISTANCE PROGRAM AND VALUE OF ASSISTANCE
THAT WAS APPROVED BY THE STATE GRANTING BODY.
  (E)  THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC PROJECT
SITE ON THE DATE THAT THE APPLICATION WAS SUBMITTED TO THE STATE  GRANT-
ING  BODY  AND THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC
PROJECT SITE ON  THE  DATE  OF  THE  REPORT,  INCLUDING  THE  NUMBER  OF
FULL-TIME,  PERMANENT JOBS, THE NUMBER OF PART-TIME JOBS, AND THE NUMBER
OF TEMPORARY JOBS, AND A COMPUTATION OF THE GAIN OR LOSS OF JOBS IN EACH
CATEGORY.
  (F) THE NUMBER OF NEW EMPLOYEES AND RETAINED EMPLOYEES  THE  APPLICANT
STATED  IN ITS DEVELOPMENT ASSISTANCE AGREEMENT, IF ANY, IF NOT, THEN IN
ITS APPLICATION, WOULD BE CREATED BY THE DEVELOPMENT  ASSISTANCE  BROKEN
DOWN BY FULL-TIME, PERMANENT, PART-TIME, AND TEMPORARY.
  (G) A SWORN DECLARATION OF WHETHER THE RECIPIENT IS IN COMPLIANCE WITH
THE DEVELOPMENT ASSISTANCE AGREEMENT.
  (H)  A  DETAILED  LIST  OF  THE  OCCUPATION OR JOB CLASSIFICATIONS AND
NUMBER OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN  FULL-TIME,
PERMANENT  JOBS,  A  SCHEDULE  OF  ANTICIPATED STARTING DATES OF THE NEW
HIRES AND THE ACTUAL AVERAGE WAGE BY OCCUPATION  OR  JOB  CLASSIFICATION

S. 3449                            10

AND  TOTAL  PAYROLL TO BE CREATED AS A RESULT OF THE DEVELOPMENT ASSIST-
ANCE.
  (I)  A  NARRATIVE, IF NECESSARY, DESCRIBING HOW THE RECIPIENT'S USE OF
THE DEVELOPMENT ASSISTANCE DURING THE REPORTING YEAR HAS REDUCED EMPLOY-
MENT AT ANY SITE IN NEW YORK.
  (J) A CERTIFICATION BY THE CHIEF OFFICER OF THE APPLICANT  OR  HIS  OR
HER  AUTHORIZED  DESIGNEE  THAT  THE  INFORMATION IN THE PROGRESS REPORT
CONTAINS NO KNOWING  MISREPRESENTATION  OF  MATERIAL  FACTS  UPON  WHICH
ELIGIBILITY FOR DEVELOPMENT ASSISTANCE IS BASED.
  3.  THE  STATE  GRANTING  BODY, OR A SUCCESSOR AGENCY, SHALL HAVE FULL
AUTHORITY TO VERIFY INFORMATION CONTAINED IN  THE  RECIPIENT'S  PROGRESS
REPORT, INCLUDING THE AUTHORITY TO INSPECT THE SPECIFIC PROJECT SITE AND
INSPECT THE RECORDS OF THE RECIPIENT THAT ARE SUBJECT TO THE DEVELOPMENT
ASSISTANCE AGREEMENT.
  4.  BY JUNE FIRST, TWO THOUSAND FIFTEEN AND BY JUNE FIRST OF EACH YEAR
THEREAFTER, THE DEPARTMENT SHALL COMPILE AND PUBLISH ALL DATA IN ALL  OF
THE PROGRESS REPORTS IN BOTH WRITTEN AND ELECTRONIC FORM.
  5.  IF  A  RECIPIENT  OF  DEVELOPMENT  ASSISTANCE FAILS TO COMPLY WITH
SUBDIVISION TWO OF THIS SECTION, THE  DEPARTMENT  SHALL,  WITHIN  TWENTY
WORKING  DAYS  AFTER THE REPORTING SUBMITTAL DEADLINES SET FORTH IN SUCH
SUBDIVISION TWO, SUSPEND WITHIN THIRTY-THREE WORKING  DAYS  ANY  CURRENT
DEVELOPMENT ASSISTANCE TO SUCH RECIPIENT UNDER ITS CONTROL, AND SHALL BE
PROHIBITED  FROM COMPLETING ANY CURRENT OR PROVIDING ANY FUTURE DEVELOP-
MENT ASSISTANCE UNTIL IT RECEIVES PROOF THAT  SUCH  RECIPIENT  HAS  COME
INTO  COMPLIANCE  WITH  THE  REQUIREMENTS  OF  SUBDIVISION  TWO  OF THIS
SECTION.
  6. THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY THE  INFORMATION
REQUIRED  IN  THE PROGRESS REPORT REQUIRED UNDER SUBDIVISION TWO OF THIS
SECTION CONSISTENT WITH THE DISCLOSURE PURPOSE OF THIS SECTION  FOR  ANY
GRANTS THAT ARE NOT GIVEN AS AN INCENTIVE TO A RECIPIENT PUBLIC AUTHORI-
TY.
  S  3984.  RECAPTURE.    1. ALL DEVELOPMENT ASSISTANCE AGREEMENTS SHALL
CONTAIN, AT A MINIMUM, THE FOLLOWING RECAPTURE PROVISIONS:
  (A) THE RECIPIENT MUST (I) MAKE THE LEVEL OF CAPITAL INVESTMENT IN THE
ECONOMIC DEVELOPMENT PROJECT SPECIFIED  IN  THE  DEVELOPMENT  ASSISTANCE
AGREEMENT; (II) CREATE OR RETAIN, OR BOTH, THE REQUISITE NUMBER OF JOBS,
PAYING  NOT LESS THAN SPECIFIED WAGES FOR THE CREATED AND RETAINED JOBS,
WITHIN AND FOR THE DURATION OF THE TIME PERIOD SPECIFIED IN THE DEVELOP-
MENT ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT.
  (B) IF THE RECIPIENT FAILS TO CREATE OR RETAIN THE REQUISITE NUMBER OF
JOBS WITHIN AND FOR  THE  TIME  PERIOD  SPECIFIED,  IN  THE  DEVELOPMENT
ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIP-
IENT SHALL BE DEEMED TO NO LONGER QUALIFY FOR THE STATE ECONOMIC ASSIST-
ANCE AND THE APPLICABLE RECAPTURE PROVISIONS SHALL TAKE EFFECT.
  (C) IF THE RECIPIENT RECEIVES STATE ECONOMIC ASSISTANCE IN THE FORM OF
AN EMPIRE ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL  LAW OR AN INDUSTRIAL DEVELOPMENT ZONE DESIGNATION PURSUANT TO
ARTICLE EIGHTEEN-A OF THE GENERAL MUNICIPAL LAW AND THE RECIPIENT  FAILS
TO  CREATE  OR RETAIN THE REQUISITE NUMBER OF JOBS, AS DETERMINED BY THE
DEVELOPMENT ASSISTANCE AGREEMENT WITHIN THE REQUISITE  PERIOD  OF  TIME,
THE  RECIPIENT  SHALL BE REQUIRED TO PAY TO THE STATE THE FULL AMOUNT OF
THE STATE TAX EXEMPTION THAT IT RECEIVED AS  A  RESULT  OF  SUCH  DESIG-
NATION.
  (D)  IF  THE  RECIPIENT RECEIVES A GRANT OR LOAN PURSUANT TO AN EMPIRE
ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL
LAW OR AN INDUSTRIAL DEVELOPMENT ZONE DESIGNATION  PURSUANT  TO  ARTICLE

S. 3449                            11

EIGHTEEN-A  OF  THE  GENERAL  MUNICIPAL  LAW  AND THE RECIPIENT FAILS TO
CREATE OR RETAIN THE REQUISITE NUMBER OF JOBS  FOR  THE  REQUISITE  TIME
PERIOD, AS PROVIDED IN THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIPI-
ENT  SHALL  BE  REQUIRED  TO REPAY TO THE STATE A PRO RATA AMOUNT OF THE
GRANT; THAT AMOUNT  SHALL  REFLECT  THE  PERCENTAGE  OF  THE  DEFICIENCY
BETWEEN  THE  REQUISITE  NUMBER OF JOBS TO BE CREATED OR RETAINED BY THE
RECIPIENT AND THE ACTUAL NUMBER OF SUCH JOBS IN EXISTENCE AS OF THE DATE
THE DEPARTMENT DETERMINES THE RECIPIENT IS IN BREACH OF THE JOB CREATION
OR RETENTION COVENANTS CONTAINED IN THE  DEVELOPMENT  ASSISTANCE  AGREE-
MENT. IF THE RECIPIENT OF DEVELOPMENT ASSISTANCE UNDER SUCH DESIGNATIONS
CEASES OPERATIONS AT THE SPECIFIC PROJECT SITE DURING A FIVE YEAR PERIOD
COMMENCING ON THE DATE OF ASSISTANCE, THE RECIPIENT SHALL BE REQUIRED TO
REPAY  THE  ENTIRE AMOUNT OF THE GRANT OR TO ACCELERATE REPAYMENT OF THE
LOAN BACK TO THE STATE.
  (E) IF THE RECIPIENT RECEIVES A TAX CREDIT UNDER ARTICLE EIGHTEEN-A OR
EIGHTEEN-B OF THE GENERAL  MUNICIPAL  LAW,  THE  DEVELOPMENT  ASSISTANCE
AGREEMENT  SHALL  PROVIDE  THAT  (I)  IF  THE  NUMBER OF NEW OR RETAINED
EMPLOYEES FALLS BELOW THE REQUISITE NUMBER SET FORTH IN THE  DEVELOPMENT
ASSISTANCE AGREEMENT, THE ALLOWANCE OF THE CREDIT SHALL BE AUTOMATICALLY
SUSPENDED  UNTIL  THE  NUMBER  OF  NEW  AND RETAINED EMPLOYEES EQUALS OR
EXCEEDS THE REQUISITE NUMBER IN THE  DEVELOPMENT  ASSISTANCE  AGREEMENT;
(II)  IF  THE  RECIPIENT DISCONTINUES OPERATIONS AT THE SPECIFIC PROJECT
SITE DURING THE FIRST FIVE YEARS OF THE TERM OF THE DEVELOPMENT  ASSIST-
ANCE  AGREEMENT,  THE  RECIPIENT  SHALL FORFEIT ALL CREDITS TAKEN BY THE
RECIPIENT DURING SUCH FIVE YEAR PERIOD; AND (III)  IN  THE  EVENT  OF  A
REVOCATION  OR  SUSPENSION  OF THE CREDIT, THE DEPARTMENT SHALL INITIATE
PROCEEDINGS AGAINST THE RECIPIENT TO RECOVER WRONGFULLY  EXEMPTED  STATE
INCOME  TAXES  AND  THE RECIPIENT SHALL PROMPTLY REPAY TO THE DEPARTMENT
ANY WRONGFULLY EXEMPTED STATE INCOME  TAXES.  THE  FORFEITED  AMOUNT  OF
CREDITS  SHALL  BE  DEEMED ASSESSED ON THE DATE THE DEPARTMENT INITIATES
PROCEEDINGS AGAINST SUCH RECIPIENT  AND  THE  RECIPIENT  SHALL  PROMPTLY
REPAY TO THE DEPARTMENT ANY WRONGFULLY EXEMPTED STATE INCOME TAXES.
  2.  THE  COMMISSIONER  OF  TAXATION  AND  FINANCE  MAY  ELECT TO WAIVE
ENFORCEMENT OF ANY CONTRACTUAL PROVISION ARISING OUT OF THE  DEVELOPMENT
ASSISTANCE  AGREEMENT  REQUIRED  BY THIS ARTICLE BASED ON A FINDING THAT
THE WAIVER IS NECESSARY TO AVERT AN IMMINENT AND  DEMONSTRABLE  HARDSHIP
TO  THE  RECIPIENT  THAT  MAY  RESULT  IN SUCH RECIPIENT'S INSOLVENCY OR
DISCHARGE OF WORKERS. IF A WAIVER IS GRANTED, THE RECIPIENT SHALL  AGREE
TO  A  CONTRACTUAL  MODIFICATION, INCLUDING RECAPTURE PROVISIONS, TO THE
DEVELOPMENT ASSISTANCE AGREEMENT. THE EXISTENCE OF  ANY  WAIVER  GRANTED
PURSUANT  TO SUBDIVISION THREE OF THIS SECTION, THE DATE OF THE GRANTING
OF SUCH WAIVER, AND A BRIEF SUMMARY OF THE REASONS SUPPORTING THE GRANT-
ING OF SUCH WAIVER SHALL BE DISCLOSED CONSISTENT WITH THE PROVISIONS  OF
THIS SECTION.
  3.  BEGINNING  JUNE FIRST, TWO THOUSAND FOURTEEN, THE DEPARTMENT SHALL
ANNUALLY COMPILE A REPORT ON THE OUTCOMES AND EFFECTIVENESS OF RECAPTURE
PROVISIONS BY PROGRAM, INCLUDING BUT  NOT  LIMITED  TO:  (A)  THE  TOTAL
NUMBER  OF AUTHORITIES THAT RECEIVE DEVELOPMENT ASSISTANCE AS DEFINED IN
THIS ARTICLE; (B) THE TOTAL NUMBER OF RECIPIENTS IN VIOLATION OF  DEVEL-
OPMENT AGREEMENTS WITH THE DEPARTMENT; (C) THE TOTAL NUMBER OF COMPLETED
RECAPTURE  EFFORTS; (D) THE TOTAL NUMBER OF RECAPTURE EFFORTS INITIATED;
AND (E) THE NUMBER OF WAIVERS GRANTED. SUCH REPORT  SHALL  BE  DISCLOSED
CONSISTENT   WITH   THE   PROVISIONS   OF  SECTION  THIRTY-NINE  HUNDRED
EIGHTY-THREE OF THIS ARTICLE.
  S 4. This act shall take effect on the one hundred twentieth day after
it shall have become a law and shall apply to contracts  and  agreements

S. 3449                            12

entered  into  on  or after such effective date.  Effective immediately,
the addition, amendment and/or repeal of any rule or  regulation  neces-
sary for the implementation of this act on its effective date is author-
ized to be made on or before such effective date.

Co-Sponsors

S3449A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A2062A
Current Committee:
Law Section:
Business Corporation Law
Laws Affected:
Add Art 14 §§1401 - 1405, BC L; add Art 10-E §§3980 - 3984, Pub Auth L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S446A, A5920A
2009-2010: S750, A557

S3449A (ACTIVE) - Bill Texts

view summary

Enacts the corporate accountability for tax expenditures act; standardizes applications for state development assistance for empire zone assistance and industrial development agency assistance; requires submission of certain development assistance agreements to the department of taxation and finance; requires recipients of certain development assistance to submit progress reports which include certain information and disclosures; makes certain recapture provisions; and defines relevant terms.

view sponsor memo
BILL NUMBER:S3449A

TITLE OF BILL: An act to amend the business corporation law and the
public authorities law, in relation to enacting the "corporate account-
ability for tax expenditures act"

PURPOSE:

To provide a comprehensive record of all economic development incentives
that are entered into between state entities and businesses in order for
the Legislature and the Governor to make well informed decisions about
tax expenditures.

SUMMARY OF PROVISIONS:

Creates the State Corporate Accountability for Tax Expenditures Act.
Provides that State economic assistance provided by any state agency,
public authority and/or public benefit corporation, as an incentive to a
business organization must be based on the terms of a written incentive
agreement between the department and the business organization. Every
agreement must identify the specific State economic assistance to be
provided to the business organization during the term of the agreement
and lists terms the agreement must contain. Provides that State economic
assistance incentive agreements must provide that if a business organ-
ization either fails to make the requisite level of capital investment
in the project or fails to create or retain the specified number of jobs
within the specified time frame, as provided under the Act authorizing
the State economic assistance, the business organization shall be deemed
to no longer qualify for the State economic assistance. Provides that
the full content of all written incentive agreements are to be
published.

EXISTING LAW:

None.

JUSTIFICATION:

Every year, New York State spends billions of dollars on economic devel-
opment incentives and subsidies, mostly for large businesses. These
subsidies take many forms: corporate income tax credits, property tax
abatements, low-interest loans, empire zone credits, rebates, utility
rate reductions, deferrals on taxes that would other wise be paid,
incentives to invest in research and development, training grants, land
site preparation and infrastructure financing. In return, companies
promise economic development, especially the creation of new jobs and/or
promise assistance to lower income and or elderly New Yorkers.

There is currently no comprehensive system of standards or oversight for
the distribution of economic development subsidies and incentives.
Because these subsidies are usually offered through off-budget public
authorities (of which there are more than 600 in New York State) or as

tax expenditures built in the State budget, but rarely approved as free-
standing legislation, decisions about the allocation of economic incen-
tives and evaluation of the economic benefits to residents of New York
State provided by those incentives are not subject to significant public
or legislative scrutiny or review. In fact, it is currently not possible
for New York State to accurately calculate the cost effectiveness of
these incentives, and once granted, measures initiated the name of
economic development are seldom audited nor do they sunset, especially
tax breaks.

The state's structural budget problems mean that we must ensure public
transparency and ongoing review of expended dollars and lost State
revenues. We need to evaluate whether these models are working, what
benefits they are providing in comparison to other proposed uses of
state funds and the impact of inequities in our tax policies due to the
use industry specific tax expenditures. We also need to exercise due
diligence through legislative and public oversight to make sure that
programs are run efficiently and that the state gets the best return for
the public for each state dollar. Dollars spent on economic development
incentives and tax breaks should be reviewed with the same degree of
scrutiny as dollars spent on all other government programs.

Many of the corporate tax expenditures were enacted for the purpose of
encouraging investment and job creation in New York, however, the effi-
cacy of the expenditures have yet to be analyzed and measured. By having
the Tax Department submit a report on all the State's tax expenditures,
credits, deductions, exclusions, exemptions or any other tax benefits to
the Senate, Assembly and the Governor, informed decisions can be made
based on the efficacy of the existing programs.

Absent this legislation, there are very real economic costs to the state
of New York. All too frequently, the state has provided subsidies, loans
and tax breaks to companies that then failed to create jobs as promised.
Companies such as Kodak, General Electric, Nine West and Rubbermaid all
laid off large numbers of employees after receiving state incentives
through the Empire State Development corporation. Other major companies,
such as Merrill Lynch and Bausch and Lomb, have significantly cut their
workforce after taking incentives for increasing employment.

These cases are hardly unique - a 1997 study by former state Senator
Franz Leichter discovered that companies receiving state economic incen-
tives at that time actually had a net loss of 1,765 jobs during the
previous year. More recent data indicates similar trends. According to
the Empire State Development Corporation, companies receiving incentives
for additional job creation suffered a net loss of 3,316 jobs in 2002.
New York State simply cannot afford to be giving money to companies that
are not providing real economic benefits to the state.

In addition to real job creation, companies should be expected to have a
record of good corporate citizenship if they are going to receive public
support. Currently there are no such standards. If subsidies are really
going to benefit the people of New York, the businesses that receive

them should be required to pay living waves, avoid criminal activity,
and work with the communities in which they are located.

FISCAL IMPLICATIONS:

Increase in cost for additional audit equipment.

LOCAL FISCAL IMPLICATIONS:

Increase in cost for additional audit equipment.

EFFECTIVE DATE:

This act shall take effect on the one hundred twentieth day after it
shall have become a law.

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

                                 3449--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 1, 2013
                               ___________

Introduced  by Sens. KRUEGER, HASSELL-THOMPSON, PARKER -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Corporations,  Authorities  and  Commissions  --  recommitted  to  the
  Committee on Corporations, Authorities and Commissions  in  accordance
  with  Senate  Rule  6,  sec.  8 -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the business corporation law and the public  authorities
  law,  in  relation  to  enacting the "corporate accountability for tax
  expenditures act"

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

  Section  1.  Short title.  This act shall be known and may be cited as
the "corporate accountability for tax expenditures act".
  S 2. The business corporation law is amended by adding a  new  article
14 to read as follows:
                                ARTICLE 14
              CORPORATE ACCOUNTABILITY FOR TAX EXPENDITURES
SECTION 1401. DEFINITIONS.
        1402. UNIFIED ECONOMIC DEVELOPMENT BUDGET.
        1403. STANDARDIZED  APPLICATIONS  FOR  STATE DEVELOPMENT ASSIST-
                ANCE.
        1404. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.
        1405. RECAPTURE.
S 1401. DEFINITIONS.
  AS USED IN THIS ARTICLE:
  (A) "BASE YEARS" MEANS THE FIRST TWO COMPLETE CALENDAR YEARS FOLLOWING
THE EFFECTIVE DATE OF A RECIPIENT RECEIVING DEVELOPMENT ASSISTANCE.
  (B) "DATE OF ASSISTANCE" MEANS THE COMMENCEMENT DATE OF THE ASSISTANCE
AGREEMENT, WHICH DATE TRIGGERS THE PERIOD DURING WHICH THE RECIPIENT  IS
OBLIGATED  TO  CREATE  OR  RETAIN  JOBS  AND  CONTINUE OPERATIONS AT THE
SPECIFIC PROJECT SITE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00902-02-4

S. 3449--A                          2

  (C) "DEFAULT"  MEANS  THAT  A  RECIPIENT  HAS  NOT  ACHIEVED  ITS  JOB
CREATION, JOB RETENTION, OR WAGE OR BENEFIT GOALS, AS APPLICABLE, DURING
THE PRESCRIBED PERIOD THEREFOR.
  (D)  "DEPARTMENT"  MEANS,  UNLESS  OTHERWISE  NOTED, THE DEPARTMENT OF
TAXATION AND FINANCE OR ANY SUCCESSOR AGENCY.
  (E) "DEVELOPMENT ASSISTANCE" MEANS (1) TAX CREDITS AND TAX  EXEMPTIONS
(OTHER  THAN  GIVEN UNDER TAX INCREMENT FINANCING) GIVEN AS AN INCENTIVE
TO A RECIPIENT BUSINESS ORGANIZATION  PURSUANT  TO  AN  INITIAL  CERTIF-
ICATION  OR  AN INITIAL DESIGNATION MADE BY THE DEPARTMENT UNDER ARTICLE
EIGHTEEN-A OR EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW;
  (2) ALL SUCCESSOR AND SUBSEQUENT PROGRAMS AND TAX CREDITS DESIGNED  TO
PROMOTE  LARGE BUSINESS RELOCATIONS AND EXPANSIONS. "DEVELOPMENT ASSIST-
ANCE" DOES NOT INCLUDE  TAX  INCREMENT  FINANCING,  ASSISTANCE  PROVIDED
UNDER  ARTICLE  EIGHTEEN-A  OR  EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW
PURSUANT TO LOCAL ORDINANCE, PARTICIPATION LOANS,  OR  FINANCIAL  TRANS-
ACTIONS  THROUGH  STATUTORILY  AUTHORIZED  FINANCIAL  INTERMEDIARIES  IN
SUPPORT OF SMALL BUSINESS LOANS AND INVESTMENTS OR GIVEN  IN  CONNECTION
WITH THE DEVELOPMENT OF AFFORDABLE HOUSING.
  (F) "DEVELOPMENT ASSISTANCE AGREEMENT" MEANS ANY AGREEMENT EXECUTED BY
THE  STATE  GRANTING  BODY AND THE RECIPIENT SETTING FORTH THE TERMS AND
CONDITIONS OF DEVELOPMENT ASSISTANCE TO BE  PROVIDED  TO  THE  RECIPIENT
CONSISTENT  WITH  THE  FINAL  APPLICATION  FOR  DEVELOPMENT  ASSISTANCE,
INCLUDING BUT NOT LIMITED TO THE DATE OF ASSISTANCE,  SUBMITTED  TO  AND
APPROVED BY THE STATE GRANTING BODY.
  (G)  "FULL-TIME,  PERMANENT JOB" MEANS A JOB IN WHICH THE NEW EMPLOYEE
WORKS FOR THE RECIPIENT AT A RATE OF  AT  LEAST  THIRTY-FIVE  HOURS  PER
WEEK.
  (H)  "NEW  EMPLOYEE" MEANS A FULL-TIME, PERMANENT EMPLOYEE WHO REPRES-
ENTS A NET INCREASE IN THE NUMBER OF THE  RECIPIENT'S  EMPLOYEES  STATE-
WIDE.  "NEW  EMPLOYEE"  INCLUDES AN EMPLOYEE WHO PREVIOUSLY FILLED A NEW
EMPLOYEE POSITION WITH THE RECIPIENT WHO WAS REHIRED OR CALLED BACK FROM
A LAYOFF THAT OCCURS DURING OR FOLLOWING THE BASE YEARS.
  THE TERM "NEW EMPLOYEE" DOES NOT INCLUDE ANY OF THE FOLLOWING:
  (1) AN EMPLOYEE OF THE RECIPIENT WHO PERFORMS A JOB THAT WAS PREVIOUS-
LY PERFORMED BY ANOTHER EMPLOYEE IN THIS STATE, IF THAT JOB  EXISTED  IN
THIS STATE FOR AT LEAST SIX MONTHS BEFORE HIRING THE EMPLOYEE.
  (2) A CHILD, GRANDCHILD, PARENT, OR SPOUSE, OTHER THAN A SPOUSE WHO IS
LEGALLY  SEPARATED  FROM  THE  INDIVIDUAL,  OF  ANY INDIVIDUAL WHO HAS A
DIRECT OR INDIRECT OWNERSHIP INTEREST OF AT LEAST FIVE  PERCENT  IN  THE
PROFITS, CAPITAL, OR VALUE OF ANY MEMBER OF THE RECIPIENT.
  (I)  "PART-TIME  JOB"  MEANS A JOB IN WHICH THE NEW EMPLOYEE WORKS FOR
THE RECIPIENT AT A RATE OF LESS THAN THIRTY-FIVE HOURS PER WEEK.
  (J) "RECIPIENT" MEANS ANY BUSINESS THAT RECEIVES ECONOMIC  DEVELOPMENT
ASSISTANCE.  A  BUSINESS  IS ANY CORPORATION, LIMITED LIABILITY COMPANY,
PARTNERSHIP, JOINT VENTURE, ASSOCIATION, SOLE PROPRIETORSHIP,  OR  OTHER
LEGALLY RECOGNIZED ENTITY.
  (K)  "RETAINED  EMPLOYEE"  MEANS  ANY  EMPLOYEE  DEFINED  AS  HAVING A
FULL-TIME OR FULL-TIME EQUIVALENT JOB PRESERVED AT A  SPECIFIC  FACILITY
OR SITE, THE CONTINUANCE OF WHICH IS THREATENED BY A SPECIFIC AND DEMON-
STRABLE THREAT, WHICH SHALL BE SPECIFIED IN THE APPLICATION FOR DEVELOP-
MENT ASSISTANCE.
  (L)  "SPECIFIC  PROJECT  SITE" MEANS THAT DISTINCT OPERATIONAL UNIT TO
WHICH ANY DEVELOPMENT ASSISTANCE IS APPLIED.
  (M) "STATE GRANTING  BODY"  MEANS  THE  DEPARTMENT,  ANY  OTHER  STATE
DEPARTMENT OR STATE AGENCY THAT PROVIDES DEVELOPMENT ASSISTANCE THAT HAS

S. 3449--A                          3

REPORTING REQUIREMENTS UNDER THIS ARTICLE, AND ANY SUCCESSOR AGENCIES TO
ANY OF THE PRECEDING.
  (N) "TEMPORARY JOB" MEANS A JOB IN WHICH THE NEW EMPLOYEE IS HIRED FOR
A SPECIFIC DURATION OF TIME OR SEASON.
  (O) "VALUE OF ASSISTANCE" MEANS THE FACE VALUE OF ANY FORM OF DEVELOP-
MENT ASSISTANCE.
S 1402. UNIFIED ECONOMIC DEVELOPMENT BUDGET.
  (A)  FOR EACH STATE FISCAL YEAR ENDING ON OR AFTER JUNE THIRTIETH, TWO
THOUSAND FIFTEEN, THE DEPARTMENT SHALL SUBMIT AN ANNUAL UNIFIED ECONOMIC
DEVELOPMENT BUDGET TO THE GOVERNOR, SENATE  AND  ASSEMBLY.  THE  UNIFIED
ECONOMIC  DEVELOPMENT  BUDGET SHALL BE DUE WITHIN THREE MONTHS AFTER THE
END OF THE FISCAL YEAR, AND  SHALL  PRESENT  ALL  TYPES  OF  DEVELOPMENT
ASSISTANCE GRANTED DURING THE PRIOR FISCAL YEAR, INCLUDING:
  (1) THE AGGREGATE AMOUNT OF UNCOLLECTED OR DIVERTED STATE TAX REVENUES
RESULTING  FROM EACH TYPE OF DEVELOPMENT ASSISTANCE PROVIDED PURSUANT TO
LAW, AS REPORTED TO THE DEPARTMENT  ON  TAX  RETURNS  FILED  DURING  THE
FISCAL YEAR.
  (2) ALL STATE DEVELOPMENT ASSISTANCE.
  (B)  ALL  DATA  CONTAINED  IN  THE UNIFIED ECONOMIC DEVELOPMENT BUDGET
PRESENTED TO THE GOVERNOR, SENATE AND ASSEMBLY SHALL BE FULLY SUBJECT TO
THE FREEDOM OF INFORMATION ACT.
  (C) THE DEPARTMENT SHALL SUBMIT A REPORT OF THE  AMOUNTS  IN  SUBPARA-
GRAPH  ONE OF PARAGRAPH (A) OF THIS SECTION TO THE DEPARTMENT, WHICH MAY
APPEND SUCH REPORT TO THE UNIFIED  ECONOMIC  DEVELOPMENT  BUDGET  RATHER
THAN SEPARATELY REPORTING SUCH AMOUNTS.
S 1403. STANDARDIZED APPLICATIONS FOR STATE DEVELOPMENT ASSISTANCE.
  (A)  ALL  FINAL  APPLICATIONS SUBMITTED TO THE DEPARTMENT OR ANY OTHER
STATE GRANTING BODY REQUESTING DEVELOPMENT ASSISTANCE SHALL CONTAIN,  AT
A MINIMUM:
  (1)  AN APPLICATION TRACKING NUMBER THAT IS SPECIFIC TO BOTH THE STATE
GRANTING AGENCY AND TO EACH APPLICATION.
  (2) THE OFFICE MAILING ADDRESS, OFFICE  TELEPHONE  NUMBER,  AND  CHIEF
OFFICER OF THE GRANTING BODY.
  (3)  THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF THE
CHIEF OFFICER OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR  THE  SPECIFIC
PROJECT SITE FOR WHICH DEVELOPMENT ASSISTANCE IS REQUESTED.
  (4)  THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC PROJECT
SITE ON THE DATE THAT THE APPLICATION IS SUBMITTED TO THE STATE GRANTING
BODY, INCLUDING THE NUMBER OF FULL-TIME, PERMANENT JOBS, THE  NUMBER  OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.
  (5)  THE  TYPE OF DEVELOPMENT ASSISTANCE AND VALUE OF ASSISTANCE BEING
REQUESTED.
  (6) THE NUMBER OF JOBS TO BE CREATED AND RETAINED OR BOTH CREATED  AND
RETAINED  BY  THE  APPLICANT  AS A RESULT OF THE DEVELOPMENT ASSISTANCE,
INCLUDING THE  NUMBER  OF  FULL-TIME,  PERMANENT  JOBS,  THE  NUMBER  OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.
  (7)  A  DETAILED  LIST  OF  THE  OCCUPATION OR JOB CLASSIFICATIONS AND
NUMBER OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN  FULL-TIME,
PERMANENT  JOBS,  A  SCHEDULE  OF  ANTICIPATED STARTING DATES OF THE NEW
HIRES AND THE ANTICIPATED AVERAGE WAGE BY OCCUPATION OR JOB  CLASSIFICA-
TION  AND  TOTAL  PAYROLL  TO  BE CREATED AS A RESULT OF THE DEVELOPMENT
ASSISTANCE.
  (8) A LIST OF ALL OTHER  FORMS  OF  DEVELOPMENT  ASSISTANCE  THAT  THE
APPLICANT  IS  REQUESTING  FOR THE SPECIFIC PROJECT SITE AND THE NAME OF
EACH STATE GRANTING BODY FROM WHICH THAT DEVELOPMENT ASSISTANCE IS BEING
REQUESTED.

S. 3449--A                          4

  (9) A NARRATIVE, IF NECESSARY, DESCRIBING WHY THE DEVELOPMENT  ASSIST-
ANCE IS NEEDED AND HOW THE APPLICANT'S USE OF THE DEVELOPMENT ASSISTANCE
MAY REDUCE EMPLOYMENT AT ANY SITE IN NEW YORK.
  (10)  A  CERTIFICATION BY THE CHIEF OFFICER OF THE APPLICANT OR HIS OR
HER AUTHORIZED DESIGNEE THAT THE INFORMATION CONTAINED IN  THE  APPLICA-
TION  SUBMITTED  TO  THE  GRANTING BODY CONTAINS NO KNOWING MISREPRESEN-
TATION OF MATERIAL FACTS UPON WHICH ELIGIBILITY FOR DEVELOPMENT  ASSIST-
ANCE IS BASED.
  (B)  EVERY STATE GRANTING BODY EITHER SHALL COMPLETE, OR SHALL REQUIRE
THE APPLICANT TO COMPLETE, AN APPLICATION FORM THAT  MEETS  THE  MINIMUM
REQUIREMENTS  AS  PRESCRIBED  IN  THIS  SECTION  EACH  TIME AN APPLICANT
APPLIES FOR DEVELOPMENT ASSISTANCE COVERED BY THIS ARTICLE.
  (C) THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY  ANY  STANDARD-
IZED  APPLICATION  FOR STATE DEVELOPMENT ASSISTANCE REQUIRED UNDER PARA-
GRAPH (A) OF THIS SECTION FOR ANY GRANTS THAT ARE NOT GIVEN AS AN INCEN-
TIVE TO A RECIPIENT BUSINESS ORGANIZATION.
S 1404. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.
  (A) BEGINNING FEBRUARY FIRST, TWO THOUSAND SIXTEEN AND EACH YEAR THER-
EAFTER, EVERY STATE GRANTING BODY SHALL SUBMIT TO THE DEPARTMENT  COPIES
OF  ALL  DEVELOPMENT ASSISTANCE AGREEMENTS THAT IT APPROVED IN THE PRIOR
CALENDAR YEAR.
  (B) FOR EACH DEVELOPMENT ASSISTANCE AGREEMENT FOR WHICH  THE  DATE  OF
ASSISTANCE HAS OCCURRED IN THE PRIOR CALENDAR YEAR, EACH RECIPIENT SHALL
SUBMIT  TO  THE DEPARTMENT A PROGRESS REPORT THAT SHALL INCLUDE, BUT NOT
BE LIMITED TO, THE FOLLOWING:
  (1) THE APPLICATION TRACKING NUMBER.
  (2) THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF  THE
CHIEF OFFICER OF THE GRANTING BODY.
  (3)  THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF THE
CHIEF OFFICER OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR  THE  SPECIFIC
PROJECT  SITE  FOR  WHICH THE DEVELOPMENT ASSISTANCE WAS APPROVED BY THE
STATE GRANTING BODY.
  (4) THE TYPE OF DEVELOPMENT ASSISTANCE PROGRAM AND VALUE OF ASSISTANCE
THAT WAS APPROVED BY THE STATE GRANTING BODY.
  (5) THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC  PROJECT
SITE  ON THE DATE THAT THE APPLICATION WAS SUBMITTED TO THE STATE GRANT-
ING BODY AND THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT  THE  SPECIFIC
PROJECT  SITE  ON  THE  DATE  OF  THE  REPORT,  INCLUDING  THE NUMBER OF
FULL-TIME, PERMANENT JOBS, THE NUMBER OF PART-TIME JOBS, AND THE  NUMBER
OF TEMPORARY JOBS, AND A COMPUTATION OF THE GAIN OR LOSS OF JOBS IN EACH
CATEGORY.
  (6)  THE  NUMBER OF NEW EMPLOYEES AND RETAINED EMPLOYEES THE APPLICANT
STATED IN ITS DEVELOPMENT ASSISTANCE AGREEMENT, IF ANY, IF NOT, THEN  IN
ITS  APPLICATION,  WOULD BE CREATED BY THE DEVELOPMENT ASSISTANCE BROKEN
DOWN BY FULL-TIME, PERMANENT, PART-TIME, AND TEMPORARY.
  (7) A SWORN DECLARATION OF WHETHER THE RECIPIENT IS IN COMPLIANCE WITH
THE DEVELOPMENT ASSISTANCE AGREEMENT.
  (8) A DETAILED LIST OF  THE  OCCUPATION  OR  JOB  CLASSIFICATIONS  AND
NUMBER  OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN FULL-TIME,
PERMANENT JOBS, A SCHEDULE OF ANTICIPATED  STARTING  DATES  OF  THE  NEW
HIRES  AND  THE  ACTUAL AVERAGE WAGE BY OCCUPATION OR JOB CLASSIFICATION
AND TOTAL PAYROLL TO BE CREATED AS A RESULT OF THE  DEVELOPMENT  ASSIST-
ANCE.
  (9)  A  NARRATIVE, IF NECESSARY, DESCRIBING HOW THE RECIPIENT'S USE OF
THE DEVELOPMENT ASSISTANCE DURING THE REPORTING YEAR HAS REDUCED EMPLOY-
MENT AT ANY SITE IN NEW YORK.

S. 3449--A                          5

  (10) A CERTIFICATION BY THE CHIEF OFFICER OF THE APPLICANT OR  HIS  OR
HER  AUTHORIZED  DESIGNEE  THAT  THE  INFORMATION IN THE PROGRESS REPORT
CONTAINS NO KNOWING  MISREPRESENTATION  OF  MATERIAL  FACTS  UPON  WHICH
ELIGIBILITY FOR DEVELOPMENT ASSISTANCE IS BASED.
  (C)  THE  STATE  GRANTING BODY, OR A SUCCESSOR AGENCY, SHALL HAVE FULL
AUTHORITY TO VERIFY INFORMATION CONTAINED IN  THE  RECIPIENT'S  PROGRESS
REPORT, INCLUDING THE AUTHORITY TO INSPECT THE SPECIFIC PROJECT SITE AND
INSPECT THE RECORDS OF THE RECIPIENT THAT ARE SUBJECT TO THE DEVELOPMENT
ASSISTANCE AGREEMENT.
  (D) BY JUNE FIRST, TWO THOUSAND SIXTEEN AND BY JUNE FIRST OF EACH YEAR
THEREAFTER,  THE DEPARTMENT SHALL COMPILE AND PUBLISH ALL DATA IN ALL OF
THE PROGRESS REPORTS IN BOTH WRITTEN AND ELECTRONIC FORM.
  (E) IF A RECIPIENT OF DEVELOPMENT  ASSISTANCE  FAILS  TO  COMPLY  WITH
PARAGRAPH (B) OF THIS SECTION, THE DEPARTMENT SHALL, WITHIN TWENTY WORK-
ING DAYS AFTER THE REPORTING SUBMITTAL DEADLINES SET FORTH IN SUCH PARA-
GRAPH (B), SUSPEND WITHIN THIRTY-THREE WORKING DAYS ANY CURRENT DEVELOP-
MENT  ASSISTANCE  TO  SUCH  RECIPIENT  UNDER  ITS  CONTROL, AND SHALL BE
PROHIBITED FROM COMPLETING ANY CURRENT OR PROVIDING ANY FUTURE  DEVELOP-
MENT  ASSISTANCE  UNTIL  IT  RECEIVES PROOF THAT SUCH RECIPIENT HAS COME
INTO COMPLIANCE WITH THE REQUIREMENTS OF PARAGRAPH (B) OF THIS SECTION.
  (F) THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY THE INFORMATION
REQUIRED IN THE PROGRESS REPORT REQUIRED UNDER  PARAGRAPH  (B)  OF  THIS
SECTION  CONSISTENT  WITH THE DISCLOSURE PURPOSE OF THIS SECTION FOR ANY
GRANTS THAT ARE NOT GIVEN AS AN INCENTIVE TO A RECIPIENT BUSINESS ORGAN-
IZATION.
S 1405. RECAPTURE.
  (A) ALL DEVELOPMENT ASSISTANCE AGREEMENTS SHALL CONTAIN, AT A MINIMUM,
THE FOLLOWING RECAPTURE PROVISIONS:
  (1) THE RECIPIENT MUST (I) MAKE THE LEVEL OF CAPITAL INVESTMENT IN THE
ECONOMIC DEVELOPMENT PROJECT SPECIFIED  IN  THE  DEVELOPMENT  ASSISTANCE
AGREEMENT; (II) CREATE OR RETAIN, OR BOTH, THE REQUISITE NUMBER OF JOBS,
PAYING  NOT LESS THAN SPECIFIED WAGES FOR THE CREATED AND RETAINED JOBS,
WITHIN AND FOR THE DURATION OF THE TIME PERIOD SPECIFIED IN THE DEVELOP-
MENT ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT.
  (2) IF THE RECIPIENT FAILS TO CREATE OR RETAIN THE REQUISITE NUMBER OF
JOBS WITHIN AND FOR  THE  TIME  PERIOD  SPECIFIED,  IN  THE  DEVELOPMENT
ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIP-
IENT SHALL BE DEEMED TO NO LONGER QUALIFY FOR THE STATE ECONOMIC ASSIST-
ANCE AND THE APPLICABLE RECAPTURE PROVISIONS SHALL TAKE EFFECT.
  (3) IF THE RECIPIENT RECEIVES STATE ECONOMIC ASSISTANCE IN THE FORM OF
AN EMPIRE ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL  LAW OR AN INDUSTRIAL DEVELOPMENT ZONE DESIGNATION PURSUANT TO
ARTICLE EIGHTEEN-A OF THE GENERAL MUNICIPAL LAW AND THE RECIPIENT  FAILS
TO  CREATE  OR RETAIN THE REQUISITE NUMBER OF JOBS, AS DETERMINED BY THE
DEVELOPMENT ASSISTANCE AGREEMENT WITHIN THE REQUISITE  PERIOD  OF  TIME,
THE  RECIPIENT  SHALL BE REQUIRED TO PAY TO THE STATE THE FULL AMOUNT OF
THE STATE TAX EXEMPTION THAT IT RECEIVED AS  A  RESULT  OF  SUCH  DESIG-
NATION.
  (4)  IF  THE  RECIPIENT RECEIVES A GRANT OR LOAN PURSUANT TO AN EMPIRE
ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL
LAW OR AN INDUSTRIAL DEVELOPMENT ZONE DESIGNATION  PURSUANT  TO  ARTICLE
EIGHTEEN-A  OF  THE  GENERAL  MUNICIPAL  LAW  AND THE RECIPIENT FAILS TO
CREATE OR RETAIN THE REQUISITE NUMBER OF JOBS  FOR  THE  REQUISITE  TIME
PERIOD, AS PROVIDED IN THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIPI-
ENT  SHALL  BE  REQUIRED  TO REPAY TO THE STATE A PRO RATA AMOUNT OF THE
GRANT; THAT AMOUNT  SHALL  REFLECT  THE  PERCENTAGE  OF  THE  DEFICIENCY

S. 3449--A                          6

BETWEEN  THE  REQUISITE  NUMBER OF JOBS TO BE CREATED OR RETAINED BY THE
RECIPIENT AND THE ACTUAL NUMBER OF SUCH JOBS IN EXISTENCE AS OF THE DATE
THE DEPARTMENT DETERMINES THE RECIPIENT IS IN BREACH OF THE JOB CREATION
OR  RETENTION  COVENANTS  CONTAINED IN THE DEVELOPMENT ASSISTANCE AGREE-
MENT. IF THE RECIPIENT OF DEVELOPMENT ASSISTANCE UNDER SUCH DESIGNATIONS
CEASES OPERATIONS AT THE SPECIFIC PROJECT SITE DURING A FIVE YEAR PERIOD
COMMENCING ON THE DATE OF ASSISTANCE, THE RECIPIENT SHALL BE REQUIRED TO
REPAY THE ENTIRE AMOUNT OF THE GRANT OR TO ACCELERATE REPAYMENT  OF  THE
LOAN BACK TO THE STATE.
  (5) IF THE RECIPIENT RECEIVES A TAX CREDIT UNDER ARTICLE EIGHTEEN-A OR
EIGHTEEN-B  OF  THE  GENERAL  MUNICIPAL  LAW, THE DEVELOPMENT ASSISTANCE
AGREEMENT SHALL PROVIDE THAT (I)  IF  THE  NUMBER  OF  NEW  OR  RETAINED
EMPLOYEES  FALLS BELOW THE REQUISITE NUMBER SET FORTH IN THE DEVELOPMENT
ASSISTANCE AGREEMENT, THE ALLOWANCE OF THE CREDIT SHALL BE AUTOMATICALLY
SUSPENDED UNTIL THE NUMBER OF  NEW  AND  RETAINED  EMPLOYEES  EQUALS  OR
EXCEEDS  THE  REQUISITE  NUMBER IN THE DEVELOPMENT ASSISTANCE AGREEMENT;
(II) IF THE RECIPIENT DISCONTINUES OPERATIONS AT  THE  SPECIFIC  PROJECT
SITE  DURING THE FIRST FIVE YEARS OF THE TERM OF THE DEVELOPMENT ASSIST-
ANCE AGREEMENT, THE RECIPIENT SHALL FORFEIT ALL  CREDITS  TAKEN  BY  THE
RECIPIENT  DURING  SUCH  FIVE  YEAR  PERIOD; AND (III) IN THE EVENT OF A
REVOCATION OR SUSPENSION OF THE CREDIT, THE  DEPARTMENT  SHALL  INITIATE
PROCEEDINGS  AGAINST  THE RECIPIENT TO RECOVER WRONGFULLY EXEMPTED STATE
INCOME TAXES AND THE RECIPIENT SHALL PROMPTLY REPAY  TO  THE  DEPARTMENT
ANY  WRONGFULLY  EXEMPTED  STATE  INCOME  TAXES. THE FORFEITED AMOUNT OF
CREDITS SHALL BE DEEMED ASSESSED ON THE DATE  THE  DEPARTMENT  INITIATES
PROCEEDINGS  AGAINST  SUCH  RECIPIENT  AND  THE RECIPIENT SHALL PROMPTLY
REPAY TO THE DEPARTMENT ANY WRONGFULLY EXEMPTED STATE INCOME TAXES.
  (B) THE COMMISSIONER OF  TAXATION  AND  FINANCE  MAY  ELECT  TO  WAIVE
ENFORCEMENT  OF ANY CONTRACTUAL PROVISION ARISING OUT OF THE DEVELOPMENT
ASSISTANCE AGREEMENT REQUIRED BY THIS ARTICLE BASED ON  A  FINDING  THAT
THE  WAIVER  IS NECESSARY TO AVERT AN IMMINENT AND DEMONSTRABLE HARDSHIP
TO THE RECIPIENT THAT MAY  RESULT  IN  SUCH  RECIPIENT'S  INSOLVENCY  OR
DISCHARGE  OF WORKERS. IF A WAIVER IS GRANTED, THE RECIPIENT SHALL AGREE
TO A CONTRACTUAL MODIFICATION, INCLUDING RECAPTURE  PROVISIONS,  TO  THE
DEVELOPMENT  ASSISTANCE  AGREEMENT.  THE EXISTENCE OF ANY WAIVER GRANTED
PURSUANT TO PARAGRAPH (C) OF THIS SECTION, THE DATE OF THE  GRANTING  OF
SUCH  WAIVER, AND A BRIEF SUMMARY OF THE REASONS SUPPORTING THE GRANTING
OF SUCH WAIVER SHALL BE DISCLOSED CONSISTENT WITH THE PROVISIONS OF THIS
SECTION.
  (C) BEGINNING JUNE FIRST, TWO THOUSAND FIFTEEN, THE  DEPARTMENT  SHALL
ANNUALLY COMPILE A REPORT ON THE OUTCOMES AND EFFECTIVENESS OF RECAPTURE
PROVISIONS  BY  PROGRAM,  INCLUDING  BUT  NOT  LIMITED TO: (I) THE TOTAL
NUMBER OF COMPANIES THAT RECEIVE DEVELOPMENT ASSISTANCE  AS  DEFINED  IN
THIS ARTICLE; (II) THE TOTAL NUMBER OF RECIPIENTS IN VIOLATION OF DEVEL-
OPMENT  AGREEMENTS  WITH  THE  DEPARTMENT;  (III)  THE  TOTAL  NUMBER OF
COMPLETED RECAPTURE EFFORTS; (IV) THE TOTAL NUMBER OF RECAPTURE  EFFORTS
INITIATED;  AND  (V) THE NUMBER OF WAIVERS GRANTED. SUCH REPORT SHALL BE
DISCLOSED CONSISTENT WITH THE PROVISIONS  OF  SECTION  FOURTEEN  HUNDRED
FOUR OF THIS ARTICLE.
  S  3.  The  public  authorities law is amended by adding a new article
10-E to read as follows:
                               ARTICLE 10-E
              CORPORATE ACCOUNTABILITY FOR TAX EXPENDITURES
SECTION 3980. DEFINITIONS.
        3981. UNIFIED ECONOMIC DEVELOPMENT BUDGET.

S. 3449--A                          7

        3982. STANDARDIZED APPLICATIONS FOR  STATE  DEVELOPMENT  ASSIST-
                ANCE.
        3983. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.
        3984. RECAPTURE.
  S 3980. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "BASE YEARS" MEANS THE FIRST TWO COMPLETE CALENDAR YEARS FOLLOWING
THE EFFECTIVE DATE OF A RECIPIENT RECEIVING DEVELOPMENT ASSISTANCE.
  2. "DATE OF ASSISTANCE" MEANS THE COMMENCEMENT DATE OF THE  ASSISTANCE
AGREEMENT,  WHICH DATE TRIGGERS THE PERIOD DURING WHICH THE RECIPIENT IS
OBLIGATED TO CREATE OR  RETAIN  JOBS  AND  CONTINUE  OPERATIONS  AT  THE
SPECIFIC PROJECT SITE.
  3. "DEFAULT" MEANS THAT A RECIPIENT HAS NOT ACHIEVED ITS JOB CREATION,
JOB  RETENTION,  OR  WAGE  OR  BENEFIT  GOALS, AS APPLICABLE, DURING THE
PRESCRIBED PERIOD THEREFOR.
  4. "DEPARTMENT" MEANS, UNLESS OTHERWISE NOTED, THE DEPARTMENT OF TAXA-
TION AND FINANCE OR ANY SUCCESSOR AGENCY.
  5. "DEVELOPMENT ASSISTANCE" MEANS (A) TAX CREDITS AND  TAX  EXEMPTIONS
(OTHER  THAN  GIVEN UNDER TAX INCREMENT FINANCING) GIVEN AS AN INCENTIVE
TO A RECIPIENT PUBLIC AUTHORITY PURSUANT TO AN INITIAL CERTIFICATION  OR
AN  INITIAL  DESIGNATION MADE BY THE DEPARTMENT UNDER ARTICLE EIGHTEEN-A
OR EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW;
  (B) ALL SUCCESSOR AND SUBSEQUENT PROGRAMS AND TAX CREDITS DESIGNED  TO
PROMOTE  LARGE BUSINESS RELOCATIONS AND EXPANSIONS. "DEVELOPMENT ASSIST-
ANCE" DOES NOT INCLUDE  TAX  INCREMENT  FINANCING,  ASSISTANCE  PROVIDED
UNDER  ARTICLE  EIGHTEEN-A  OR  EIGHTEEN-B  OF THE GENERAL MUNICIPAL LAW
PURSUANT TO LOCAL ORDINANCE, PARTICIPATION LOANS,  OR  FINANCIAL  TRANS-
ACTIONS  THROUGH  STATUTORILY  AUTHORIZED  FINANCIAL  INTERMEDIARIES  IN
SUPPORT OF SMALL BUSINESS LOANS AND INVESTMENTS OR GIVEN  IN  CONNECTION
WITH THE DEVELOPMENT OF AFFORDABLE HOUSING.
  6.  "DEVELOPMENT ASSISTANCE AGREEMENT" MEANS ANY AGREEMENT EXECUTED BY
THE STATE GRANTING BODY AND THE RECIPIENT SETTING FORTH  THE  TERMS  AND
CONDITIONS  OF  DEVELOPMENT  ASSISTANCE  TO BE PROVIDED TO THE RECIPIENT
CONSISTENT  WITH  THE  FINAL  APPLICATION  FOR  DEVELOPMENT  ASSISTANCE,
INCLUDING  BUT  NOT  LIMITED TO THE DATE OF ASSISTANCE, SUBMITTED TO AND
APPROVED BY THE STATE GRANTING BODY.
  7. "FULL-TIME, PERMANENT JOB" MEANS A JOB IN WHICH  THE  NEW  EMPLOYEE
WORKS  FOR  THE  RECIPIENT  AT  A RATE OF AT LEAST THIRTY-FIVE HOURS PER
WEEK.
  8.  "NEW EMPLOYEE" MEANS A FULL-TIME, PERMANENT EMPLOYEE  WHO  REPRES-
ENTS  A  NET  INCREASE IN THE NUMBER OF THE RECIPIENT'S EMPLOYEES STATE-
WIDE. "NEW EMPLOYEE" INCLUDES AN EMPLOYEE WHO PREVIOUSLY  FILLED  A  NEW
EMPLOYEE POSITION WITH THE RECIPIENT WHO WAS REHIRED OR CALLED BACK FROM
A LAYOFF THAT OCCURS DURING OR FOLLOWING THE BASE YEARS.
  THE TERM "NEW EMPLOYEE" DOES NOT INCLUDE ANY OF THE FOLLOWING:
  (A) AN EMPLOYEE OF THE RECIPIENT WHO PERFORMS A JOB THAT WAS PREVIOUS-
LY  PERFORMED  BY ANOTHER EMPLOYEE IN THIS STATE, IF THAT JOB EXISTED IN
THIS STATE FOR AT LEAST SIX MONTHS BEFORE HIRING THE EMPLOYEE.
  (B) A CHILD, GRANDCHILD, PARENT, OR SPOUSE, OTHER THAN A SPOUSE WHO IS
LEGALLY SEPARATED FROM THE INDIVIDUAL,  OF  ANY  INDIVIDUAL  WHO  HAS  A
DIRECT  OR  INDIRECT  OWNERSHIP INTEREST OF AT LEAST FIVE PERCENT IN THE
PROFITS, CAPITAL, OR VALUE OF ANY MEMBER OF THE RECIPIENT.
  9. "PART-TIME JOB" MEANS A JOB IN WHICH THE NEW EMPLOYEE WORKS FOR THE
RECIPIENT AT A RATE OF LESS THAN THIRTY-FIVE HOURS PER WEEK.
  10. "RECIPIENT" MEANS ANY PUBLIC AUTHORITY CREATED  PURSUANT  TO  THIS
CHAPTER  THAT  RECEIVES ECONOMIC DEVELOPMENT ASSISTANCE OR OTHER LEGALLY
RECOGNIZED ENTITY OF SUCH A PUBLIC AUTHORITY.

S. 3449--A                          8

  11. "RETAINED  EMPLOYEE"  MEANS  ANY  EMPLOYEE  DEFINED  AS  HAVING  A
FULL-TIME  OR  FULL-TIME EQUIVALENT JOB PRESERVED AT A SPECIFIC FACILITY
OR SITE, THE CONTINUANCE OF WHICH IS THREATENED BY A SPECIFIC AND DEMON-
STRABLE THREAT, WHICH SHALL BE SPECIFIED IN THE APPLICATION FOR DEVELOP-
MENT ASSISTANCE.
  12.  "SPECIFIC  PROJECT  SITE" MEANS THAT DISTINCT OPERATIONAL UNIT TO
WHICH ANY DEVELOPMENT ASSISTANCE IS APPLIED.
  13. "STATE GRANTING  BODY"  MEANS  THE  DEPARTMENT,  ANY  OTHER  STATE
DEPARTMENT OR STATE AGENCY THAT PROVIDES DEVELOPMENT ASSISTANCE THAT HAS
REPORTING REQUIREMENTS UNDER THIS ARTICLE, AND ANY SUCCESSOR AGENCIES TO
ANY OF THE PRECEDING.
  14. "TEMPORARY JOB" MEANS A JOB IN WHICH THE NEW EMPLOYEE IS HIRED FOR
A SPECIFIC DURATION OF TIME OR SEASON.
  15. "VALUE OF ASSISTANCE" MEANS THE FACE VALUE OF ANY FORM OF DEVELOP-
MENT ASSISTANCE.
  S 3981. UNIFIED ECONOMIC DEVELOPMENT BUDGET.  1. FOR EACH STATE FISCAL
YEAR  ENDING  ON  OR  AFTER  JUNE  THIRTIETH,  TWO THOUSAND FIFTEEN, THE
DEPARTMENT SHALL SUBMIT AN ANNUAL UNIFIED ECONOMIC DEVELOPMENT BUDGET TO
THE GOVERNOR, SENATE AND  ASSEMBLY.  THE  UNIFIED  ECONOMIC  DEVELOPMENT
BUDGET  SHALL  BE  DUE  WITHIN  THREE MONTHS AFTER THE END OF THE FISCAL
YEAR, AND SHALL PRESENT ALL  TYPES  OF  DEVELOPMENT  ASSISTANCE  GRANTED
DURING THE PRIOR FISCAL YEAR, INCLUDING:
  (A) THE AGGREGATE AMOUNT OF UNCOLLECTED OR DIVERTED STATE TAX REVENUES
RESULTING  FROM EACH TYPE OF DEVELOPMENT ASSISTANCE PROVIDED PURSUANT TO
LAW, AS REPORTED TO THE DEPARTMENT  ON  TAX  RETURNS  FILED  DURING  THE
FISCAL YEAR.
  (B) ALL STATE DEVELOPMENT ASSISTANCE.
  2.  ALL  DATA  CONTAINED  IN  THE  UNIFIED ECONOMIC DEVELOPMENT BUDGET
PRESENTED TO THE GOVERNOR, SENATE AND ASSEMBLY SHALL BE FULLY SUBJECT TO
THE FREEDOM OF INFORMATION ACT.
  3. THE DEPARTMENT SHALL SUBMIT A REPORT OF THE  AMOUNTS  IN  PARAGRAPH
(A)  OF  SUBDIVISION  ONE  OF  THIS SECTION TO THE DEPARTMENT, WHICH MAY
APPEND SUCH REPORT TO THE UNIFIED  ECONOMIC  DEVELOPMENT  BUDGET  RATHER
THAN SEPARATELY REPORTING SUCH AMOUNTS.
  S  3982.  STANDARDIZED  APPLICATIONS FOR STATE DEVELOPMENT ASSISTANCE.
1. ALL FINAL APPLICATIONS SUBMITTED TO THE DEPARTMENT OR ANY OTHER STATE
GRANTING BODY REQUESTING DEVELOPMENT  ASSISTANCE  SHALL  CONTAIN,  AT  A
MINIMUM:
  (A)  AN APPLICATION TRACKING NUMBER THAT IS SPECIFIC TO BOTH THE STATE
GRANTING AGENCY AND TO EACH APPLICATION.
  (B) THE OFFICE MAILING ADDRESS, OFFICE  TELEPHONE  NUMBER,  AND  CHIEF
OFFICER OF THE GRANTING BODY.
  (C)  THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF THE
CHIEF OFFICER OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR  THE  SPECIFIC
PROJECT SITE FOR WHICH DEVELOPMENT ASSISTANCE IS REQUESTED.
  (D)  THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC PROJECT
SITE ON THE DATE THAT THE APPLICATION IS SUBMITTED TO THE STATE GRANTING
BODY, INCLUDING THE NUMBER OF FULL-TIME, PERMANENT JOBS, THE  NUMBER  OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.
  (E)  THE  TYPE OF DEVELOPMENT ASSISTANCE AND VALUE OF ASSISTANCE BEING
REQUESTED.
  (F) THE NUMBER OF JOBS TO BE CREATED AND RETAINED OR BOTH CREATED  AND
RETAINED  BY  THE  APPLICANT  AS A RESULT OF THE DEVELOPMENT ASSISTANCE,
INCLUDING THE  NUMBER  OF  FULL-TIME,  PERMANENT  JOBS,  THE  NUMBER  OF
PART-TIME JOBS, AND THE NUMBER OF TEMPORARY JOBS.

S. 3449--A                          9

  (G)  A  DETAILED  LIST  OF  THE  OCCUPATION OR JOB CLASSIFICATIONS AND
NUMBER OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN  FULL-TIME,
PERMANENT  JOBS,  A  SCHEDULE  OF  ANTICIPATED STARTING DATES OF THE NEW
HIRES AND THE ANTICIPATED AVERAGE WAGE BY OCCUPATION OR JOB  CLASSIFICA-
TION  AND  TOTAL  PAYROLL  TO  BE CREATED AS A RESULT OF THE DEVELOPMENT
ASSISTANCE.
  (H) A LIST OF ALL OTHER  FORMS  OF  DEVELOPMENT  ASSISTANCE  THAT  THE
APPLICANT  IS  REQUESTING  FOR THE SPECIFIC PROJECT SITE AND THE NAME OF
EACH STATE GRANTING BODY FROM WHICH THAT DEVELOPMENT ASSISTANCE IS BEING
REQUESTED.
  (I) A NARRATIVE, IF NECESSARY, DESCRIBING WHY THE DEVELOPMENT  ASSIST-
ANCE IS NEEDED AND HOW THE APPLICANT'S USE OF THE DEVELOPMENT ASSISTANCE
MAY REDUCE EMPLOYMENT AT ANY SITE IN NEW YORK.
  (J)  A  CERTIFICATION  BY THE CHIEF OFFICER OF THE APPLICANT OR HIS OR
HER AUTHORIZED DESIGNEE THAT THE INFORMATION CONTAINED IN  THE  APPLICA-
TION  SUBMITTED  TO  THE  GRANTING BODY CONTAINS NO KNOWING MISREPRESEN-
TATION OF MATERIAL FACTS UPON WHICH ELIGIBILITY FOR DEVELOPMENT  ASSIST-
ANCE IS BASED.
  2.  EVERY  STATE GRANTING BODY EITHER SHALL COMPLETE, OR SHALL REQUIRE
THE APPLICANT TO COMPLETE, AN APPLICATION FORM THAT  MEETS  THE  MINIMUM
REQUIREMENTS  AS  PRESCRIBED  IN  THIS  SECTION  EACH  TIME AN APPLICANT
APPLIES FOR DEVELOPMENT ASSISTANCE COVERED BY THIS ARTICLE.
  3. THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY ANY STANDARDIZED
APPLICATION FOR STATE DEVELOPMENT ASSISTANCE REQUIRED UNDER  SUBDIVISION
ONE OF THIS SECTION FOR ANY GRANTS THAT ARE NOT GIVEN AS AN INCENTIVE TO
A RECIPIENT PUBLIC AUTHORITY.
  S  3983. STATE DEVELOPMENT ASSISTANCE DISCLOSURE.  1. BEGINNING FEBRU-
ARY FIRST, TWO THOUSAND SIXTEEN AND EACH YEAR  THEREAFTER,  EVERY  STATE
GRANTING  BODY  SHALL SUBMIT TO THE DEPARTMENT COPIES OF ALL DEVELOPMENT
ASSISTANCE AGREEMENTS THAT IT APPROVED IN THE PRIOR CALENDAR YEAR.
  2. FOR EACH DEVELOPMENT ASSISTANCE AGREEMENT FOR  WHICH  THE  DATE  OF
ASSISTANCE HAS OCCURRED IN THE PRIOR CALENDAR YEAR, EACH RECIPIENT SHALL
SUBMIT  TO  THE DEPARTMENT A PROGRESS REPORT THAT SHALL INCLUDE, BUT NOT
BE LIMITED TO, THE FOLLOWING:
  (A) THE APPLICATION TRACKING NUMBER.
  (B) THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF  THE
CHIEF OFFICER OF THE GRANTING BODY.
  (C)  THE OFFICE MAILING ADDRESS, TELEPHONE NUMBER, AND THE NAME OF THE
CHIEF OFFICER OF THE APPLICANT OR AUTHORIZED DESIGNEE FOR  THE  SPECIFIC
PROJECT  SITE  FOR  WHICH THE DEVELOPMENT ASSISTANCE WAS APPROVED BY THE
STATE GRANTING BODY.
  (D) THE TYPE OF DEVELOPMENT ASSISTANCE PROGRAM AND VALUE OF ASSISTANCE
THAT WAS APPROVED BY THE STATE GRANTING BODY.
  (E) THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT THE SPECIFIC  PROJECT
SITE  ON THE DATE THAT THE APPLICATION WAS SUBMITTED TO THE STATE GRANT-
ING BODY AND THE APPLICANT'S TOTAL NUMBER OF EMPLOYEES AT  THE  SPECIFIC
PROJECT  SITE  ON  THE  DATE  OF  THE  REPORT,  INCLUDING  THE NUMBER OF
FULL-TIME, PERMANENT JOBS, THE NUMBER OF PART-TIME JOBS, AND THE  NUMBER
OF TEMPORARY JOBS, AND A COMPUTATION OF THE GAIN OR LOSS OF JOBS IN EACH
CATEGORY.
  (F)  THE  NUMBER OF NEW EMPLOYEES AND RETAINED EMPLOYEES THE APPLICANT
STATED IN ITS DEVELOPMENT ASSISTANCE AGREEMENT, IF ANY, IF NOT, THEN  IN
ITS  APPLICATION,  WOULD BE CREATED BY THE DEVELOPMENT ASSISTANCE BROKEN
DOWN BY FULL-TIME, PERMANENT, PART-TIME, AND TEMPORARY.
  (G) A SWORN DECLARATION OF WHETHER THE RECIPIENT IS IN COMPLIANCE WITH
THE DEVELOPMENT ASSISTANCE AGREEMENT.

S. 3449--A                         10

  (H) A DETAILED LIST OF  THE  OCCUPATION  OR  JOB  CLASSIFICATIONS  AND
NUMBER  OF NEW EMPLOYEES OR RETAINED EMPLOYEES TO BE HIRED IN FULL-TIME,
PERMANENT JOBS, A SCHEDULE OF ANTICIPATED  STARTING  DATES  OF  THE  NEW
HIRES  AND  THE  ACTUAL AVERAGE WAGE BY OCCUPATION OR JOB CLASSIFICATION
AND  TOTAL  PAYROLL TO BE CREATED AS A RESULT OF THE DEVELOPMENT ASSIST-
ANCE.
  (I) A NARRATIVE, IF NECESSARY, DESCRIBING HOW THE RECIPIENT'S  USE  OF
THE DEVELOPMENT ASSISTANCE DURING THE REPORTING YEAR HAS REDUCED EMPLOY-
MENT AT ANY SITE IN NEW YORK.
  (J)  A  CERTIFICATION  BY THE CHIEF OFFICER OF THE APPLICANT OR HIS OR
HER AUTHORIZED DESIGNEE THAT THE  INFORMATION  IN  THE  PROGRESS  REPORT
CONTAINS  NO  KNOWING  MISREPRESENTATION  OF  MATERIAL  FACTS UPON WHICH
ELIGIBILITY FOR DEVELOPMENT ASSISTANCE IS BASED.
  3. THE STATE GRANTING BODY, OR A SUCCESSOR  AGENCY,  SHALL  HAVE  FULL
AUTHORITY  TO  VERIFY  INFORMATION CONTAINED IN THE RECIPIENT'S PROGRESS
REPORT, INCLUDING THE AUTHORITY TO INSPECT THE SPECIFIC PROJECT SITE AND
INSPECT THE RECORDS OF THE RECIPIENT THAT ARE SUBJECT TO THE DEVELOPMENT
ASSISTANCE AGREEMENT.
  4. BY JUNE FIRST, TWO THOUSAND SIXTEEN AND BY JUNE FIRST OF EACH  YEAR
THEREAFTER,  THE DEPARTMENT SHALL COMPILE AND PUBLISH ALL DATA IN ALL OF
THE PROGRESS REPORTS IN BOTH WRITTEN AND ELECTRONIC FORM.
  5. IF A RECIPIENT OF  DEVELOPMENT  ASSISTANCE  FAILS  TO  COMPLY  WITH
SUBDIVISION  TWO  OF  THIS  SECTION, THE DEPARTMENT SHALL, WITHIN TWENTY
WORKING DAYS AFTER THE REPORTING SUBMITTAL DEADLINES SET FORTH  IN  SUCH
SUBDIVISION  TWO,  SUSPEND  WITHIN THIRTY-THREE WORKING DAYS ANY CURRENT
DEVELOPMENT ASSISTANCE TO SUCH RECIPIENT UNDER ITS CONTROL, AND SHALL BE
PROHIBITED FROM COMPLETING ANY CURRENT OR PROVIDING ANY FUTURE  DEVELOP-
MENT  ASSISTANCE  UNTIL  IT  RECEIVES PROOF THAT SUCH RECIPIENT HAS COME
INTO COMPLIANCE  WITH  THE  REQUIREMENTS  OF  SUBDIVISION  TWO  OF  THIS
SECTION.
  6.  THE DEPARTMENT SHALL HAVE THE DISCRETION TO MODIFY THE INFORMATION
REQUIRED IN THE PROGRESS REPORT REQUIRED UNDER SUBDIVISION TWO  OF  THIS
SECTION  CONSISTENT  WITH THE DISCLOSURE PURPOSE OF THIS SECTION FOR ANY
GRANTS THAT ARE NOT GIVEN AS AN INCENTIVE TO A RECIPIENT PUBLIC AUTHORI-
TY.
  S 3984. RECAPTURE.   1. ALL DEVELOPMENT  ASSISTANCE  AGREEMENTS  SHALL
CONTAIN, AT A MINIMUM, THE FOLLOWING RECAPTURE PROVISIONS:
  (A) THE RECIPIENT MUST (I) MAKE THE LEVEL OF CAPITAL INVESTMENT IN THE
ECONOMIC  DEVELOPMENT  PROJECT  SPECIFIED  IN THE DEVELOPMENT ASSISTANCE
AGREEMENT; (II) CREATE OR RETAIN, OR BOTH, THE REQUISITE NUMBER OF JOBS,
PAYING NOT LESS THAN SPECIFIED WAGES FOR THE CREATED AND RETAINED  JOBS,
WITHIN AND FOR THE DURATION OF THE TIME PERIOD SPECIFIED IN THE DEVELOP-
MENT ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT.
  (B) IF THE RECIPIENT FAILS TO CREATE OR RETAIN THE REQUISITE NUMBER OF
JOBS  WITHIN  AND  FOR  THE  TIME  PERIOD  SPECIFIED, IN THE DEVELOPMENT
ASSISTANCE PROGRAMS AND THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIP-
IENT SHALL BE DEEMED TO NO LONGER QUALIFY FOR THE STATE ECONOMIC ASSIST-
ANCE AND THE APPLICABLE RECAPTURE PROVISIONS SHALL TAKE EFFECT.
  (C) IF THE RECIPIENT RECEIVES STATE ECONOMIC ASSISTANCE IN THE FORM OF
AN EMPIRE ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL
MUNICIPAL LAW OR AN INDUSTRIAL DEVELOPMENT ZONE DESIGNATION PURSUANT  TO
ARTICLE  EIGHTEEN-A OF THE GENERAL MUNICIPAL LAW AND THE RECIPIENT FAILS
TO CREATE OR RETAIN THE REQUISITE NUMBER OF JOBS, AS DETERMINED  BY  THE
DEVELOPMENT  ASSISTANCE  AGREEMENT  WITHIN THE REQUISITE PERIOD OF TIME,
THE RECIPIENT SHALL BE REQUIRED TO PAY TO THE STATE THE FULL  AMOUNT  OF

S. 3449--A                         11

THE  STATE  TAX  EXEMPTION  THAT  IT RECEIVED AS A RESULT OF SUCH DESIG-
NATION.
  (D)  IF  THE  RECIPIENT RECEIVES A GRANT OR LOAN PURSUANT TO AN EMPIRE
ZONE DESIGNATION PURSUANT TO ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL
LAW OR AN INDUSTRIAL DEVELOPMENT ZONE DESIGNATION  PURSUANT  TO  ARTICLE
EIGHTEEN-A  OF  THE  GENERAL  MUNICIPAL  LAW  AND THE RECIPIENT FAILS TO
CREATE OR RETAIN THE REQUISITE NUMBER OF JOBS  FOR  THE  REQUISITE  TIME
PERIOD, AS PROVIDED IN THE DEVELOPMENT ASSISTANCE AGREEMENT, THE RECIPI-
ENT  SHALL  BE  REQUIRED  TO REPAY TO THE STATE A PRO RATA AMOUNT OF THE
GRANT; THAT AMOUNT  SHALL  REFLECT  THE  PERCENTAGE  OF  THE  DEFICIENCY
BETWEEN  THE  REQUISITE  NUMBER OF JOBS TO BE CREATED OR RETAINED BY THE
RECIPIENT AND THE ACTUAL NUMBER OF SUCH JOBS IN EXISTENCE AS OF THE DATE
THE DEPARTMENT DETERMINES THE RECIPIENT IS IN BREACH OF THE JOB CREATION
OR RETENTION COVENANTS CONTAINED IN THE  DEVELOPMENT  ASSISTANCE  AGREE-
MENT. IF THE RECIPIENT OF DEVELOPMENT ASSISTANCE UNDER SUCH DESIGNATIONS
CEASES OPERATIONS AT THE SPECIFIC PROJECT SITE DURING A FIVE YEAR PERIOD
COMMENCING ON THE DATE OF ASSISTANCE, THE RECIPIENT SHALL BE REQUIRED TO
REPAY  THE  ENTIRE AMOUNT OF THE GRANT OR TO ACCELERATE REPAYMENT OF THE
LOAN BACK TO THE STATE.
  (E) IF THE RECIPIENT RECEIVES A TAX CREDIT UNDER ARTICLE EIGHTEEN-A OR
EIGHTEEN-B OF THE GENERAL  MUNICIPAL  LAW,  THE  DEVELOPMENT  ASSISTANCE
AGREEMENT  SHALL  PROVIDE  THAT  (I)  IF  THE  NUMBER OF NEW OR RETAINED
EMPLOYEES FALLS BELOW THE REQUISITE NUMBER SET FORTH IN THE  DEVELOPMENT
ASSISTANCE AGREEMENT, THE ALLOWANCE OF THE CREDIT SHALL BE AUTOMATICALLY
SUSPENDED  UNTIL  THE  NUMBER  OF  NEW  AND RETAINED EMPLOYEES EQUALS OR
EXCEEDS THE REQUISITE NUMBER IN THE  DEVELOPMENT  ASSISTANCE  AGREEMENT;
(II)  IF  THE  RECIPIENT DISCONTINUES OPERATIONS AT THE SPECIFIC PROJECT
SITE DURING THE FIRST FIVE YEARS OF THE TERM OF THE DEVELOPMENT  ASSIST-
ANCE  AGREEMENT,  THE  RECIPIENT  SHALL FORFEIT ALL CREDITS TAKEN BY THE
RECIPIENT DURING SUCH FIVE YEAR PERIOD; AND (III)  IN  THE  EVENT  OF  A
REVOCATION  OR  SUSPENSION  OF THE CREDIT, THE DEPARTMENT SHALL INITIATE
PROCEEDINGS AGAINST THE RECIPIENT TO RECOVER WRONGFULLY  EXEMPTED  STATE
INCOME  TAXES  AND  THE RECIPIENT SHALL PROMPTLY REPAY TO THE DEPARTMENT
ANY WRONGFULLY EXEMPTED STATE INCOME  TAXES.  THE  FORFEITED  AMOUNT  OF
CREDITS  SHALL  BE  DEEMED ASSESSED ON THE DATE THE DEPARTMENT INITIATES
PROCEEDINGS AGAINST SUCH RECIPIENT  AND  THE  RECIPIENT  SHALL  PROMPTLY
REPAY TO THE DEPARTMENT ANY WRONGFULLY EXEMPTED STATE INCOME TAXES.
  2.  THE  COMMISSIONER  OF  TAXATION  AND  FINANCE  MAY  ELECT TO WAIVE
ENFORCEMENT OF ANY CONTRACTUAL PROVISION ARISING OUT OF THE  DEVELOPMENT
ASSISTANCE  AGREEMENT  REQUIRED  BY THIS ARTICLE BASED ON A FINDING THAT
THE WAIVER IS NECESSARY TO AVERT AN IMMINENT AND  DEMONSTRABLE  HARDSHIP
TO  THE  RECIPIENT  THAT  MAY  RESULT  IN SUCH RECIPIENT'S INSOLVENCY OR
DISCHARGE OF WORKERS. IF A WAIVER IS GRANTED, THE RECIPIENT SHALL  AGREE
TO  A  CONTRACTUAL  MODIFICATION, INCLUDING RECAPTURE PROVISIONS, TO THE
DEVELOPMENT ASSISTANCE AGREEMENT. THE EXISTENCE OF  ANY  WAIVER  GRANTED
PURSUANT  TO SUBDIVISION THREE OF THIS SECTION, THE DATE OF THE GRANTING
OF SUCH WAIVER, AND A BRIEF SUMMARY OF THE REASONS SUPPORTING THE GRANT-
ING OF SUCH WAIVER SHALL BE DISCLOSED CONSISTENT WITH THE PROVISIONS  OF
THIS SECTION.
  3.  BEGINNING  JUNE  FIRST, TWO THOUSAND FIFTEEN, THE DEPARTMENT SHALL
ANNUALLY COMPILE A REPORT ON THE OUTCOMES AND EFFECTIVENESS OF RECAPTURE
PROVISIONS BY PROGRAM, INCLUDING BUT  NOT  LIMITED  TO:  (A)  THE  TOTAL
NUMBER  OF AUTHORITIES THAT RECEIVE DEVELOPMENT ASSISTANCE AS DEFINED IN
THIS ARTICLE; (B) THE TOTAL NUMBER OF RECIPIENTS IN VIOLATION OF  DEVEL-
OPMENT AGREEMENTS WITH THE DEPARTMENT; (C) THE TOTAL NUMBER OF COMPLETED
RECAPTURE  EFFORTS; (D) THE TOTAL NUMBER OF RECAPTURE EFFORTS INITIATED;

S. 3449--A                         12

AND (E) THE NUMBER OF WAIVERS GRANTED. SUCH REPORT  SHALL  BE  DISCLOSED
CONSISTENT   WITH   THE   PROVISIONS   OF  SECTION  THIRTY-NINE  HUNDRED
EIGHTY-THREE OF THIS ARTICLE.
  S 4. This act shall take effect on the one hundred twentieth day after
it  shall  have become a law and shall apply to contracts and agreements
entered into on or after such effective date.    Effective  immediately,
the  addition,  amendment and/or repeal of any rule or regulation neces-
sary for the implementation of this act on its effective date is author-
ized to be made on or before such effective date.

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