Senate Bill S5551

2013-2014 Legislative Session

Provides for accountability and efficiency of industrial development agencies

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Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2014	referred to corporations, authorities and commissions
May 17, 2013	referred to corporations, authorities and commissions

2013-S5551 (ACTIVE) - Details

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

2013-S5551 (ACTIVE) - Summary

Requires industrial development agencies to prepare annual summaries for each tax exempt project financed by the agency; provides for a standard application form to be used by industrial development agencies to accept requests for financial assistance; relates to payments in lieu of taxes.

2013-S5551 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5551

TITLE OF BILL:  An act to amend the general municipal law and the
public authorities law, in relation to the accountability and
efficiency of industrial development agencies and authorities

PURPOSE: To increase the accountability and improve the efficiency and
transparency of the operations of industrial development agencies and
authorities (IDAs), by requiring standard application forms for
requests for financial assistance, providing for the preparation and
publication of an annual summary and requiring uniform criteria for
the evaluation and selection of projects for which financial
assistance is provided. The bill would also provide procedures for the
merger and consolidation of IDAs located within the same county.

SUMMARY OF PROVISIONS: Preparation and publication of annual summary
-Section 1 of this bill would amend Section 859 of the General
Municipal Law by adding new Subdivisions 4 and 5 that require IDAs to
prepare an annual summary containing an assessment of financial
activities and operations for the prior fiscal year. The IDA would be
required to prepare the summary within ninety days following the close
of each fiscal year and to include information for each pending and
completed project For every completed project, the summary would be
required to contain, if applicable, the actual final project cost,
total amount of tax exemptions actually provided and total PILOTs paid
over the life of the project, and an evaluation of whether job

creation and job retention goals were met.

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

Public hearings - Section 2 of this bill amends Section 859-a of the
General Municipal Law to require that any public hearing required
under such section be held before a minimum of two members of the IDA
and that no final determination on a project or the financial
assistance being contemplated by the agency be made until at least
thirty days after the public hearing. It would also add back into
Section 859-a provisions that had sunset on January 31, 2008,
requiring at least 30 days' notice of the hearing, describing
information that must be in the notice and requiring that notice be
given to the chief executive officer of each applicable taxing
jurisdiction.

Standard application form - Section 2 of this bill would also add a
new Subdivision 4 to Section 859-a of the General Municipal Law to
require the Department of Economic Development, in consultation with
the State Comptroller, to develop a standard application form for
requests for financial assistance from IDAs. The form, which would be
affirmed under the penalty of perjury, would be required unless a
waiver is granted by the Department of Economic Development. The
amendment would require that the form contain various information,
including the name and address of the applicant, a description of the
proposed project, the amount and type of financial assistance
requested, the total projected capital cost of the project, a
statement of the projected terms and conditions of any proposed
financing, the projected number of full-time equivalent jobs that


would be retained or created if the request for financial assistance
is granted, and certain other information relating to such jobs. The
IDA or the Department of Economic Development could require additional
information, including supporting documents and information provided
by or on behalf of the applicant.

Uniform evaluation criteria - Additionally, Section 2 of this bill
would also add a new Subdivision 5 to Section 859-a of the General
Municipal Law to require each IDA to develop uniform criteria for the
evaluation and selection of projects for which financial assistance
would be provided. At minimum, prior to the approval of the provision
of any financial assistance, the IDA would be required to conduct
certain reviews and make certain determinations. Among other things, a
standardized, written cost-benefit analysis would be required, as well
as a determination that employment projections are reasonable, along
with the development of benchmarks to evaluate whether the project has
met projected goals and targets, including those related to job
creation and retention.

Uniform project agreement - A new subdivision 6 of Section 859-a of
the General Municipal Law is added by Section 2 of this bill to
require the Department of Economic Development, in consultation with
the State Comptroller, to develop a uniform IDA project agreement that
would set forth the terms and conditions under which financial
assistance would be provided. The uniform agreement would be required
to be used, unless a waiver for good cause shown is granted by the
Department of Economic Development. The agreement would be required to
contain certain provisions, including: a description of the project
and the proposed financial assistance; a requirement for an annual
certification by the project occupant of jobs created and retained and
payments in lieu of taxes made; a schedule for PILOTs; a requirement
that payroll documents and other books and records necessary to
confirm job and salary information be retained and made accessible to
the IDA and any individual or entities auditing the IDA; a provision
for the discontinuance of financial assistance or a modification of
PILOT agreements in the event of a material violation of the terms and
conditions of the agreement; a provision for the return of financial
assistance in the event of material shortfalls from job creation and
retention projections; and in the case of a "speculation" building, a
provision for the phasing-in of benefits based on the amount of space
occupied. Various appendices would also be included, such as a record
of the public hearing.

Investigations of complaints - A new Subdivision 7 to Section 859-a of
the General Municipal Law, also added by Section 2 of this bill,
requires the Department of Economic Development to conduct
investigations of material complaints concerning possible violations
of a project agreement.

Restriction on funds of IDAs - Section 3 of this bill adds back into
Section 862 of the General Municipal Law a provision of law that had
sunset. The new Subdivision 3 of this Section provides that no funds
of an IDA shall be used for advertising or promotional materials which
depict elected or appointed government officials in either print or
electronic media.


Uniform PILOT Agreement Policy - Section 4 of this bill would amend
Subdivision 4 of Section 874 of the General Municipal Law to rename
the Uniform Tax Exemption Policy as the Uniform PILOT Agreement
Policy, and would require the policy to include payments in lieu of
taxes, as a percentage of taxes that would have been levied by or on
behalf of affected tax jurisdictions if the project was not tax-exempt
by reason of agency involvement, rather than the percentage of
exemption. This Section also adds back into the law language that had
sunset. Such language relates to requirements to give notice to
affected tax jurisdictions for deviation from the Uniform PILOT
Agreement Policy.

Dissolution and merger Section 5 of this bill would add a new Section
885 to the General Municipal Law to authorize and set forth procedures
for the dissolution of a town, village or city IDA and the merger of
such dissolved IDA into the IDA of the county in which the town,
village or city is located. The dissolution and merger would be
pursuant to a plan that states, among other things, the underlying
purpose and the terms and conditions of the proposed dissolution and
merger. Upon the effective date of the dissolution and merger, the
town, village or city IDA would cease to exist and all rights, titles,
interests, obligations and liabilities of those IDAs would be vested
in the county IDA. The Commissioner of the Department of Economic
Development would be required to undertake a study to identify those
IDAs that have not undertaken significant activity within the prior
five years and recommend that they be dissolved and merged into the
county IDA. The study would be undertaken by July 1, 2015, and the
Commissioner's findings reported to the Speaker of the Assembly, the
Temporary President of the Senate, the Governor, and the State
Comptroller and to each IDA identified in the report, by December 31,
2015.

Troy and Auburn IDAs - Sections 6 through 9 of this bill would make
conforming amendments to Sections 1953-a, 1963-a, 2307 and 2315 of the
Public Authorities Law, relating to the Cities of Troy and Auburn
IDAs.

Effective date - Section 10 would make the act effective immediately.

JUSTIFICATION: IDAs are public benefit corporations, created by
special act of the State Legislature for the benefit of
municipalities, to provide "financial assistance" to private entities,
as an inducement to the private entity to relocate, expand or remain
in the municipality. IDAs are governed by Article 18-A of the General
Municipal Law, which states that the purposes of IDAs are to promote,
develop, encourage and assist in the acquiring, constructing,
reconstructing, improving, maintaining, equipping and furnishing of
industrial, manufacturing, warehousing, commercial, research and
recreation and certain other listed facilities, and thereby advance
the job opportunities, health, general prosperity and economic welfare
of the people of the State of New York and to improve their
recreational opportunities, prosperity and standard of living.

The "financial assistance" provided by an IDA generally takes the form
of favorable interest rate financing through the use of the proceeds
of IDA bonds or notes to fund construction or acquisition costs,
and/or, since the property and activities of IDAs are tax-exempt, the


"pass through" of the benefits of certain tax exemptions (real
property, sales, mortgage recording taxes) to the private entity. The
"pass through" can be in addition to bond financing, or done
separately through what is known as a "straight lease" transaction.
Because of the tax exemption pass-through, the local governments that
would usually receive tax revenues as a result of the project (known
as the "affected tax jurisdictions") will not receive such moneys due
to the IDA status of the project. This loss of revenue can be
mitigated if the IDA enters into what is known as a "payment in lieu
of taxes" or "PILOT" agreement with the private entity, under which
the private entity agrees to pay all or a portion of the amounts that
would otherwise have been due as taxes had the project not been an IDA
project.

Because of reform legislation enacted in 1993 (Chapter 356), IDAs are
now required to have budgets, conduct public hearings before providing
financial assistance for most projects, and have "uniform tax
exemption policies." In addition, IDAs can lose their authority to
offer financial assistance in the form of State tax exemptions if they
fail to file the required annual audited financial statement.  Also,
the Public Authorities Accountability Act of 2005 (Chapter 766) added
requirements for governance, reporting, auditing and property
disposition that enhance IDA accountability. While these changes have
been positive steps toward making IDAs more accountable to the
municipalities and taxpayers for whose benefit they are created, there
remain areas where improvements are necessary, especially in light of
the critical role IDAs often play in the economic wellbeing of a
community and their potential costs in lost tax revenues.

This bill would provide for additional safeguards to help ensure that
the process used by IDAs in determining to provide financial
assistance is transparent, uniform, and deliberative and furthers the
underlying purposes of the statutes governing IDAs. Current law does
not spell out an orderly procedure by which an individual or entity
may request financial assistance from an IDA, or by which an IDA
grants such assistance or monitors projects after assistance is
provided. Instead, audits conducted by staff from the Office of the
State Comptroller indicate that the process is too often ad hoc and
inconsistent from IDA to IDA, and even from project to project within
an individual IDA.

This bill would require standard application forms for those
requesting IDA financial assistance and would require IDAs to develop
uniform criteria for assessing applications. Pursuant to these new
requirements, the types of information IDAs would receive for each
project would be more standardized and the process used to assess each
application would be more consistent and thorough. This should lead to
a more uniform and transparent process, more informed decision-making
by IDAs, and increased confidence by taxpayers that decisions to
provide financial assistance are reasoned and in furtherance of the
underlying purposes of IDAs, including the creation and retention of
jobs within the municipality for whose benefit the IDA was created.
Further, to assure that decisions by the IDA are made with the full
benefit of public input, the current public hearing requirement would
be amended to require that at least a minimum of two of the IDA board
members be present at the hearing and that no final determination on


the project or the financial assistance being contemplated by the
agency be made until at least thirty days after the public hearing.

Also, each IDA project would be undertaken in accordance with a
standard project agreement that would set forth the terms and
conditions of the assistance and provide mechanisms to help ensure
that the IDA can monitor the progress of the projects, including
whether jobs created or retained as a result of the project meet
initial projections. Further, the bill would require each IDA to
prepare, file and publicize an annual summary containing a summary of
its financial activities for the prior fiscal year. Much of the
information to be included in the summary is already developed by IDAs
in order to comply with the reporting requirements of General
Municipal Law § 859 and/or Public Authorities Law § 2800 and,
therefore, it should not be unduly burdensome for IDAs to prepare this
annual summary. Moreover, by compiling this information in a single,
comprehensive annual document, local taxpayers will be able to access
this material concerning their IDA's performance at a single location.
IDAs will be more accountable to the public and their sponsoring
municipalities, which will be able to better monitor and assess the
activities of their IDAs. To ensure compliance with this new
requirement, the bill would prohibit IDAs that are delinquent in
complying with the summary requirement from offering financial
assistance which provides exemptions from State taxes until the
requirement is met.

There are currently 114 active IDAs throughout the State. In many
cases, IDAs for towns, villages or cities have served only limited
purposes, and they are sometimes created for the purpose of financing
only a single project. Omen, these IDAs are effectively dormant, yet
do not meet the statutory requirements for dissolution. This bill
would provide the necessary authority for a voluntary, administrative
process whereby such an IDA could be dissolved and merged into the IDA
for the county in which the town, village or city is located. The bill
would make provision for the orderly transition from the town, village
or city IDA into the county IDA, including ensuring that bonds and
other obligations and liabilities of the dissolved IDA will be
properly addressed.

Finally, the bill would change the name of the policy required by
Section 874 of the General Municipal Law from the "Uniform Tax
Exemption Policy," to the more descriptive "Uniform Payment in Lieu of
Tax (PILOT) Policy." The current name has caused some confusion by
implying that the primary purpose of the policy is to address the
granting of tax exemptions. In fact, tax exemptions largely are made
applicable by operation of law (see General Municipal Law § 874). The
policy, instead, is focused on PILOTs. The bill would make the title
more closely aligned with the purpose and would correspondingly
clarify that the guidelines in the policy must include a statement of
the payments in lieu of taxes, as a percentage of taxes that would
have been levied by or on behalf of affected tax jurisdictions if the
project had not been tax-exempt by reason of agency involvement,
rather than the current requirement for "percentage of exemption." In
many financial statements submitted to the Comptroller by IDAs, which
call for the amount of tax exemptions for IDA projects, IDAs report
the exemptions, less the amount of PILOTs, incorrectly characterizing
PILOTs as if they were actual tax payments, rather than "in lieu of


payments. This change should help clarify the distinction between
taxes themselves and PILOTs, and serve to enhance more accurate
reporting and lessen confusion.

This bill will greatly increase the accountability of IDAs to the
taxpayers and municipalities for whose benefit they are created. It
will serve to ensure a greater degree of uniformity in the application
process for IDA assistance, more careful analysis and deliberation in
the decision-making process, and enhanced monitoring once IDA benefits
are conferred.  The Comptroller urges the passage of this legislation.

PRIOR LEGISLATIVE HISTORY: 2012 - A.9690/S.7541-A

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE: This act shall take effect immediately.

2013-S5551 (ACTIVE) - Bill Text download pdf

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

                                  5551

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 17, 2013
                               ___________

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

AN ACT to amend the general municipal law  and  the  public  authorities
  law,  in  relation  to the accountability and efficiency of industrial
  development agencies and authorities

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

  Section  1.  Section  859  of  the general municipal law is amended by
adding two new subdivisions 4 and 5 to read as follows:
  4. (A) FOR PURPOSES OF THIS SECTION, THE TERM:  (I)  "ANNUAL  SUMMARY"
SHALL  MEAN  THE ANNUAL SUMMARY AND ASSESSMENT OF THE ECONOMIC IMPACT OF
PENDING AND COMPLETED PROJECTS AS PRESCRIBED IN THIS  SUBDIVISION,  (II)
"PENDING  PROJECT" SHALL MEAN A PROJECT, OTHER THAN A COMPLETED PROJECT,
FOR WHICH EXEMPTIONS FROM TAXATION WERE  CLAIMED  DURING  THE  PRECEDING
FISCAL  YEAR  AS  A  RESULT  OF  THE  AGENCY HAVING TITLE, POSSESSION OR
CONTROL (BY LEASE, LICENSE OR OTHERWISE) OF THE PROPERTY OR EQUIPMENT OF
THE PROJECT OCCUPANT, OR WHICH WAS FINANCED, IN WHOLE OR IN PART, BY THE
PROCEEDS OF OUTSTANDING BONDS OR NOTES ISSUED BY THE AGENCY,  AND  (III)
"COMPLETED PROJECT" SHALL MEAN A PROJECT FOR WHICH EXEMPTIONS FROM TAXA-
TION  WERE  CLAIMED DURING PART OF THE PRECEDING FISCAL YEAR AS A RESULT
OF THE AGENCY HAVING TITLE, POSSESSION OR CONTROL (BY LEASE, LICENSE  OR
OTHERWISE)  OF  THE  PROPERTY  OR  EQUIPMENT OF THE PROJECT OCCUPANT, OR
WHICH WAS FINANCED, IN WHOLE OR IN PART, BY THE  PROCEEDS  OF  BONDS  OR
NOTES  ISSUED  BY  THE  AGENCY  THAT WERE OUTSTANDING DURING PART OF THE
PRECEDING FISCAL YEAR, BUT WHICH, AT  OF  THE  CLOSE  OF  THE  PRECEDING
FISCAL  YEAR,  WAS  NO  LONGER  A PROJECT FOR WHICH SUCH EXEMPTIONS WERE
CLAIMED, OR FOR WHICH SUCH BONDS OR NOTES REMAINED OUTSTANDING.
  (B) WITHIN NINETY DAYS FOLLOWING THE CLOSE OF EACH FISCAL  YEAR,  EACH
AGENCY  SHALL  PREPARE  AN  ANNUAL  SUMMARY,  IN  SUCH  FORM  AS  MAY BE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10730-01-3

S. 5551                             2

PRESCRIBED BY THE STATE COMPTROLLER, IN  THE  EXERCISE  OF  HIS  OR  HER
DISCRETION,  OF  EACH  PENDING AND COMPLETED PROJECT. THE ANNUAL SUMMARY
SHALL INCLUDE, AT A MINIMUM:
  (I)  AN  ASSESSMENT  OF  THE ESTIMATED ECONOMIC IMPACT OF EACH PENDING
PROJECT, INCLUDING:
  (1) THE IMPACT OF THE PENDING PROJECT ON EXISTING AND  PROPOSED  BUSI-
NESSES AND ECONOMIC DEVELOPMENT PROJECTS IN THE VICINITY;
  (2)  THE  AMOUNT OF PRIVATE SECTOR INVESTMENT GENERATED BY THE PENDING
PROJECT;
  (3) THE EXTENT TO WHICH THE PENDING PROJECT WILL REQUIRE THE PROVISION
OF ADDITIONAL GOVERNMENTAL SERVICES, SUCH AS POLICE, FIRE AND  TRANSPOR-
TATION; AND
  (4)  THE  EXTENT  TO WHICH THE PENDING PROJECT WILL PROVIDE ADDITIONAL
SOURCES OF REVENUE FOR MUNICIPALITIES AND SCHOOL DISTRICTS; AND
  (II) AN ASSESSMENT OF THE ECONOMIC IMPACT OF EACH  COMPLETED  PROJECT,
INCLUDING:
  (1)  THE  TOTAL  FINAL ACTUAL CAPITAL COSTS OF EACH COMPLETED PROJECT,
INCLUDING:
  (A) ALL COSTS OF REAL PROPERTY  AND  EQUIPMENT  ACQUISITIONS,  DESIGN,
BUILDING CONSTRUCTION OR RECONSTRUCTION AND OTHER CAPITAL ITEMS, WHETHER
FINANCED FROM PUBLIC OR PRIVATE SECTOR SOURCES; AND
  (B)  THE  PROJECTED  TOTAL  AMOUNT  OF THE PROCEEDS OF AGENCY BONDS OR
NOTES TO BE APPLIED TO THE PROJECT, THE PERCENTAGE  SHARE  THIS  CONSTI-
TUTES  IN  TERMS OF THE TOTAL PROJECT CAPITAL COST AND THE AMOUNT OF THE
PROCEEDS OF AGENCY BONDS OR NOTES ACTUALLY PROVIDED FOR THE  PROJECT  AS
OF THE CLOSE OF THE FISCAL YEAR;
  (2) THE TOTAL AMOUNT OF TAX EXEMPTIONS ACTUALLY PROVIDED OVER THE LIFE
OF  THE PROJECT, BY TYPE (E.G. PROPERTY, SALES AND USE, MORTGAGE RECORD-
ING);
  (3) THE TOTAL AMOUNT OF PAYMENTS IN LIEU OF TAXES, IF ANY, MADE AND TO
BE MADE OVER THE LIFE OF THE PROJECT; AND
  (4) AN EVALUATION OF WHETHER  PROJECTED  JOB  CREATION  AND  RETENTION
GOALS WERE MET.
  5.  WITHIN  NINETY  DAYS  FOLLOWING  THE CLOSE OF THE FISCAL YEAR, THE
ANNUAL SUMMARY SHALL BE  MADE  PUBLICLY  AVAILABLE  BY  POSTING  ON  THE
WEBSITES,  IF  ANY, OF THE AGENCY AND THE MUNICIPALITY FOR WHOSE BENEFIT
THE AGENCY WAS CREATED, OR IF THERE ARE NO  SUCH  WEBSITES,  THE  ANNUAL
SUMMARY  SHALL BE TRANSMITTED TO ONE OR MORE LOCAL NEWSPAPERS OF GENERAL
CIRCULATION WITHIN THE MUNICIPALITY.
  S 2. Section 859-a of the general municipal law, as added  by  chapter
356 of the laws of 1993, is amended to read as follows:
  S  859-a.  Additional  prerequisites  to  the  provisions of financial
assistance. Prior to providing any financial assistance of more than one
hundred thousand dollars to any project, the agency must comply with the
following prerequisites:
  1. The agency must adopt a resolution describing the project  and  the
financial  assistance  that  the agency is contemplating with respect to
such project. Such assistance shall be consistent with the uniform  [tax
exemption]  PAYMENT  IN LIEU OF TAX (PILOT) policy adopted by the agency
pursuant to subdivision four of section eight  hundred  seventy-four  of
this  [chapter] TITLE, unless the agency has followed the procedures for
deviation from such policy specified in paragraph (b) of  such  subdivi-
sion.
  2. The agency must hold a public hearing BEFORE A MINIMUM OF TWO AGEN-
CY  MEMBERS  with  respect  to  the  project  and the proposed financial
assistance being contemplated by the agency. Said public  hearing  shall

S. 5551                             3

be held in a city, town or village where the project proposes to locate.
At  said public hearing, interested parties shall be provided reasonable
opportunity, both orally and in writing, to  present  their  views  with
respect  to the project.  A COMPLETE AND ACCURATE RECORD OF THE HEARING,
INCLUDING ALL WRITTEN OR ORAL STATEMENTS MADE  OR  SUBMITTED,  SHALL  BE
KEPT.  NO FINAL DETERMINATION ON THE PROJECT OR THE FINANCIAL ASSISTANCE
BEING CONTEMPLATED BY THE AGENCY SHALL BE MADE  UNTIL  AT  LEAST  THIRTY
DAYS AFTER THE PUBLIC HEARING.
  3. The agency must give at least [ten] THIRTY days published notice of
[said]  SUCH  public hearing and shall, at the same time, provide notice
of such hearing to the chief executive  officer  of  each  affected  tax
jurisdiction  within which the project is located. The notice of hearing
must state the time and place of the hearing, contain a  general,  func-
tional  description of the project, describe the prospective location of
the project, identify the initial owner,  operator  or  manager  of  the
project  and generally describe the financial assistance contemplated by
the agency with respect to the project AND PROVIDE  AN  OPPORTUNITY  FOR
THE  PUBLIC  TO  REVIEW  THE PROJECT APPLICATION, WHICH SHALL INCLUDE AN
ANALYSIS OF THE COSTS AND BENEFITS OF THE PROPOSED PROJECT.
  4. THE DEPARTMENT OF ECONOMIC DEVELOPMENT, IN  CONSULTATION  WITH  THE
STATE  COMPTROLLER,  SHALL  DEVELOP  A  STANDARD APPLICATION FORM, WHICH
SHALL BE USED BY THE AGENCY TO ACCEPT REQUESTS FOR FINANCIAL  ASSISTANCE
FROM  ALL INDIVIDUALS, FIRMS, COMPANIES, DEVELOPERS OR OTHER ENTITIES OR
ORGANIZATIONS, UNLESS A WAIVER FROM SUCH REQUIREMENT IS GRANTED  BY  THE
DEPARTMENT  OF  ECONOMIC  DEVELOPMENT UPON TIMELY REQUEST AND GOOD CAUSE
SHOWN. THE STANDARD APPLICATION FORM SHALL BE SUBMITTED BY OR ON  BEHALF
OF  THE  APPLICANT,  AND  SUBSCRIBED AND AFFIRMED UNDER THE PENALTIES OF
PERJURY BY THE APPLICANT, OR ON BEHALF OF THE  APPLICANT  BY  THE  CHIEF
EXECUTIVE  OFFICER  OR  SUCH OTHER INDIVIDUAL THAT IS DULY AUTHORIZED TO
BIND THE APPLICANT, AS TRUE, ACCURATE AND COMPLETE TO THE BEST OF HIS OR
HER KNOWLEDGE AND BELIEF. THE STANDARD APPLICATION  FORM  SHALL  INCLUDE
THE  FOLLOWING  AND SUCH OTHER SUPPLEMENTAL INFORMATION AS DETERMINED TO
BE NECESSARY AND APPROPRIATE BY THE  AGENCY  OR  BY  THE  DEPARTMENT  OF
ECONOMIC  DEVELOPMENT,  INCLUDING  SUPPORTING  DOCUMENTS AND INFORMATION
PROVIDED BY OR ON BEHALF OF THE APPLICANT:
  (A) THE NAME AND ADDRESS OF THE PROJECT APPLICANT;
  (B) A DESCRIPTION OF THE PROPOSED PROJECT FOR WHICH FINANCIAL  ASSIST-
ANCE  IS REQUESTED, INCLUDING THE TYPE OF PROJECT, PROPOSED LOCATION AND
PURPOSE OF THE PROJECT;
  (C) THE AMOUNT AND  TYPE  OF  FINANCIAL  ASSISTANCE  BEING  REQUESTED,
INCLUDING THE ESTIMATED VALUE OF EACH TYPE OF TAX EXEMPTION SOUGHT TO BE
CLAIMED WITH RESPECT TO THE PROJECT;
  (D)  THE  TOTAL  PROJECTED  CAPITAL COST OF THE PROJECT, INCLUDING ALL
COSTS OF REAL PROPERTY AND EQUIPMENT ACQUISITION, BUILDING  CONSTRUCTION
OR  RECONSTRUCTION AND OTHER CAPITAL ITEMS, WHETHER FINANCED FROM PUBLIC
OR PRIVATE SECTOR SOURCES, AND A STATEMENT OF THE  PROJECTED  TERMS  AND
CONDITIONS OF ANY PROPOSED FINANCING;
  (E)  THE  PROJECTED  NUMBER OF FULL TIME EQUIVALENT JOBS THAT WOULD BE
RETAINED OR CREATED IF THE REQUEST FOR FINANCIAL ASSISTANCE IS  GRANTED,
THE  PROJECTED  TIMEFRAME  FOR  THE  CREATION OF NEW JOBS, THE ESTIMATED
AVERAGE SALARIES OF THE JOBS THAT WOULD BE RETAINED OR  CREATED  IF  THE
REQUEST  FOR  FINANCIAL  ASSISTANCE  IS  GRANTED  AND AN ESTIMATE OF THE
NUMBER OF RESIDENTS OF THE MUNICIPALITY FOR WHOSE BENEFIT THE AGENCY WAS
CREATED THAT WOULD FILL SUCH JOBS;

S. 5551                             4

  (F) A STATEMENT TO THE EFFECT THAT THE  PROVISIONS  OF  SECTION  EIGHT
HUNDRED  SIXTY-TWO  OF  THIS  TITLE  WILL  NOT  BE VIOLATED IF FINANCIAL
ASSISTANCE IS PROVIDED FOR THE PROPOSED PROJECT;
  (G) A STATEMENT INDICATING WHETHER THE APPLICANT, ANY PRINCIPAL THERE-
OF,  OR  ANY  CORPORATE  AFFILIATE  OR SUBSIDIARY, WITHIN THE PAST THREE
YEARS, HAS BEEN FOUND, BY FINAL JUDGMENT OF A  COURT  OR  ADMINISTRATIVE
TRIBUNAL,  IN  VIOLATION  OF  ANY FEDERAL, STATE OR LOCAL LAWS, RULES OR
REGULATIONS PERTAINING TO ENVIRONMENTAL PROTECTION, TAXATION, PROTECTION
OF WORKERS OR EMPLOYMENT OF MINORITY OR WOMEN-OWNED BUSINESSES,  AND  IF
SO, LISTING ALL SUCH VIOLATIONS;
  (H) A STATEMENT INDICATING THAT THE APPLICANT HAS OR WILL COMPLY WITH,
OR  CAUSE  TO  BE  COMPLIED  WITH,  ALL  APPLICABLE  REVIEW AND APPROVAL
REQUIREMENTS PRESCRIBED BY ANY SUCH LAWS, RULES OR REGULATIONS,  INCLUD-
ING,  BUT  NOT  LIMITED  TO, THE STATE ENVIRONMENTAL QUALITY REVIEW ACT,
PERTAINING TO THE PROJECT; AND
  (I) A STATEMENT ACKNOWLEDGING THAT THE  SUBMISSION  OF  ANY  FALSE  OR
MISLEADING  INFORMATION  MAY  LEAD  TO  THE IMMEDIATE TERMINATION OF ANY
FINANCIAL ASSISTANCE AND THE REIMBURSEMENT OF AN AMOUNT EQUAL TO ALL  OR
PART OF ANY TAX EXEMPTIONS CLAIMED AS A RESULT OF THE PROJECT.
  5.  EACH AGENCY SHALL DEVELOP, AND ADOPT BY RESOLUTION, UNIFORM CRITE-
RIA FOR THE EVALUATION AND SELECTION OF  PROJECTS  FOR  WHICH  FINANCIAL
ASSISTANCE  WILL  BE PROVIDED. THE CRITERIA SHALL, AT A MINIMUM, PROVIDE
THAT PRIOR TO THE APPROVAL OF THE  PROVISION  OF  FINANCIAL  ASSISTANCE,
THERE SHALL BE:
  (A)  AN  INDEPENDENT  ASSESSMENT, INQUIRY INTO AND CONFIRMATION BY THE
AGENCY OF ALL MATERIAL  INFORMATION  INCLUDED  IN  CONNECTION  WITH  THE
APPLICATION  FOR  FINANCIAL ASSISTANCE, AS NECESSARY TO AFFORD A REASON-
ABLE BASIS FOR THE DECISION BY THE AGENCY TO PROVIDE  FINANCIAL  ASSIST-
ANCE FOR THE PROJECT;
  (B)  A DETERMINATION BY THE AGENCY THAT EMPLOYMENT PROJECTIONS FOR THE
PROJECT ARE REASONABLE;
  (C) A DETERMINATION BY THE AGENCY THAT THERE IS A LIKELIHOOD THAT  THE
PROJECT  WOULD  NOT  BE  UNDERTAKEN  BUT  FOR  THE  FINANCIAL ASSISTANCE
PROVIDED BY THE AGENCY;
  (D) A STANDARDIZED, WRITTEN COST-BENEFIT ANALYSIS BY THE  AGENCY  THAT
(I)  INDICATES  THAT  THE  PROJECTED  ECONOMIC  BENEFITS OF THE PROJECT,
INCLUDING THE CREATION AND RETENTION OF JOBS WITHIN THE MUNICIPALITY FOR
WHOSE BENEFIT THE AGENCY WAS CREATED, WILL EXCEED THE ESTIMATED COST  OF
PROVIDING FINANCIAL ASSISTANCE, INCLUDING THE COST IN NET LOSS OF REVEN-
UES  TO  AFFECTED  TAX  JURISDICTIONS, AND THE APPROXIMATE POINT IN TIME
WHEN SUCH BENEFITS WILL EXCEED SUCH COST, (II) INCLUDES AN  ANALYSIS  OF
THE  ESTIMATED  COST  PER JOB CREATED OR RETAINED, AND (III) INCLUDES AN
ANALYSIS OF THE LOSS IN TAX REVENUES TO THE AFFECTED  TAX  JURISDICTIONS
OVER THE PERIOD OF ANY TAX EXEMPTIONS;
  (E)  A  DETERMINATION  BY THE AGENCY THAT THE PROJECT IS IN COMPLIANCE
WITH ALL PROVISIONS OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO, THIS
SECTION AND SECTION EIGHT HUNDRED SIXTY-TWO OF THIS TITLE;
  (F) IF THE PROJECT INVOLVES THE REMOVAL OR ABANDONMENT OF  A  FACILITY
OR PLANT WITHIN THE STATE, NOTIFICATION BY THE AGENCY TO THE CHIEF EXEC-
UTIVE OFFICER OR OFFICERS OF THE MUNICIPALITY OR MUNICIPALITIES IN WHICH
THE FACILITY OR PLANT WAS LOCATED;
  (G)  A  DEVELOPMENT OF BENCHMARKS TO EVALUATE WHETHER THE PROJECT WILL
MEET PROJECTED GOALS  AND  TARGETS,  INCLUDING  THOSE  RELATING  TO  JOB
CREATION AND RETENTION; AND
  (H)  A DILIGENT EFFORT TO CONFIRM THE ACCURACY OF THE STATEMENT IN THE
APPLICATION THAT NEITHER THE APPLICANT, NOR  ANY  PRINCIPAL  THEREOF  OR

S. 5551                             5

CORPORATE AFFILIATE OR SUBSIDIARY, WITHIN THE PAST THREE YEARS, HAS BEEN
FOUND,  BY  FINAL  JUDGMENT  OF  A  COURT OR ADMINISTRATIVE TRIBUNAL, IN
VIOLATION OF ANY FEDERAL, STATE OR LOCAL LAWS, RULES OR REGULATIONS,  IF
SUCH  VIOLATION  IS  DEEMED  BY  THE  AGENCY TO BE A MATERIAL VIOLATION,
PERTAINING TO ENVIRONMENTAL PROTECTION, TAXATION, PROTECTION OF  WORKERS
OR EMPLOYMENT OF MINORITY OR WOMEN-OWNED BUSINESSES.
  6.  THE  DEPARTMENT  OF ECONOMIC DEVELOPMENT, IN CONSULTATION WITH THE
STATE COMPTROLLER, SHALL DEVELOP A UNIFORM INDUSTRIAL DEVELOPMENT AGENCY
PROJECT AGREEMENT, THAT SETS FORTH  TERMS  AND  CONDITIONS  UNDER  WHICH
FINANCIAL ASSISTANCE SHALL BE PROVIDED.  THE UNIFORM INDUSTRIAL DEVELOP-
MENT  AGENCY  PROJECT  AGREEMENT  SHALL  BE  USED BY ALL AGENCIES AND NO
FINANCIAL ASSISTANCE SHALL BE PROVIDED IN THE ABSENCE OF  THE  EXECUTION
OF  SUCH  AN AGREEMENT, UNLESS A WAIVER FROM SUCH REQUIREMENT IS GRANTED
BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UPON TIMELY REQUEST  AND  GOOD
CAUSE SHOWN. THE UNIFORM INDUSTRIAL DEVELOPMENT AGENCY PROJECT AGREEMENT
SHALL, AT A MINIMUM:
  (A)  DESCRIBE  THE PROJECT AND THE FINANCIAL ASSISTANCE, INCLUDING THE
AMOUNT AND TYPE, TO BE PROVIDED, AND THE AGENCY PURPOSE TO BE ACHIEVED;
  (B) REQUIRE EACH PROJECT OCCUPANT  TO  PROVIDE  ANNUALLY  A  CERTIFIED
STATEMENT:  (I) ENUMERATING THE JOBS RETAINED AND CREATED AS A RESULT OF
THE FINANCIAL ASSISTANCE BY TITLE, FUNCTION AND  WHETHER  FULL  OR  PART
TIME,  AND  THE SALARIES AND FRINGE BENEFITS FOR EACH SUCH JOB; AND (II)
INDICATING THE AMOUNTS OF EACH PAYMENT IN LIEU OF TAX THAT WAS MADE  AND
THE ENTITY TO WHICH EACH PAYMENT WAS MADE;
  (C)  PRESCRIBE  A  SPECIFIC SCHEDULE, INCLUDING THE TIMING AND AMOUNTS
FOR EACH AFFECTED TAX JURISDICTION, FOR THE PAYMENTS OF ANY PAYMENTS  IN
LIEU OF TAXES THAT ARE NEGOTIATED AS PART OF THE TRANSACTION;
  (D) REQUIRE THE RETENTION OF, AND PERMIT THE AGENCY, OR INDIVIDUALS OR
ENTITIES  AUDITING  THE  AGENCY,  ACCESS TO, FOR PURPOSES OF EXAMINATION
INTO THE AFFAIRS OF THE AGENCY, ALL PAYROLL DOCUMENTS  AND  OTHER  BOOKS
AND  RECORDS  OF  THE  PROJECT  APPLICANT,  OCCUPANT OR ANY SUBTENANT OR
EMPLOYER, AS NECESSARY TO CONFIRM JOB AND  SALARY  INFORMATION  REPORTED
FOR  THE  PROJECT  TO  THE  AGENCY.  SUCH  DOCUMENTS AND OTHER BOOKS AND
RECORDS SHALL BE RETAINED FOR THE SAME PERIOD AS THE  RECORDS  RETENTION
PERIOD  ISSUED  BY  THE  COMMISSIONER  OF EDUCATION FOR AGENCY LOAN CASE
FILES, MEASURED FROM THE TIME AT  WHICH  FINANCIAL  ASSISTANCE  FOR  THE
PROJECT IS NO LONGER PROVIDED;
  (E)  PROVIDE  FOR  DISCONTINUANCE  OF FINANCIAL ASSISTANCE, OR FOR THE
MODIFICATION OF ANY PAYMENT IN LIEU OF  TAX  AGREEMENT  TO  REQUIRE  FOR
INCREASED  PAYMENTS,  IN  THE EVENT OF A MATERIAL VIOLATION OF THE TERMS
AND CONDITIONS OF THE AGREEMENT;
  (F) PROVIDE FOR THE RETURN OF ALL OR A PART OF THE  FINANCIAL  ASSIST-
ANCE  PROVIDED  FOR  THE PROJECT, INCLUDING ALL OR PART OF THE AMOUNT OF
ANY TAX EXEMPTIONS, WHICH SHALL  BE  REDISTRIBUTED  TO  THE  APPROPRIATE
AFFECTED  TAX JURISDICTION, IN THE EVENT OF MATERIAL SHORTFALLS FROM JOB
CREATION AND RETENTION PROJECTIONS, OR A MATERIAL VIOLATION OF THE TERMS
AND CONDITIONS OF THE AGREEMENT;
  (G) IN THE CASE OF A PROJECT FOR WHICH THE APPLICATION  FOR  FINANCIAL
ASSISTANCE INDICATES PLANS TO BUILD A FACILITY THAT WILL SUBSEQUENTLY BE
LEASED  TO TENANTS, AND IT IS UNKNOWN AT THE TIME OF APPLICATION WHO ALL
THE TENANTS OF THE FACILITY WILL BE, PROVIDE FOR A PHASING-IN  OF  BENE-
FITS  BASED  UPON THE PRO RATA SHARE OF SQUARE FOOTAGE AND TYPE OF OCCU-
PANCY WITHIN THE FACILITY THAT IS  OCCUPIED  PURSUANT  TO  TENANT  LEASE
AGREEMENTS; AND
  (H) INCLUDE AS APPENDICES: (I) A COPY OF THE STANDARD APPLICATION FORM
SUBMITTED  FOR THE PROJECT; (II) A SUMMARY OF THE AGENCY'S EVALUATION OF

S. 5551                             6

THE PROJECT PERFORMED PURSUANT TO  SUBDIVISION  FIVE  OF  THIS  SECTION;
(III)  SIGNIFICANT  CORRESPONDENCE  PERTAINING  TO  THE  PROJECT; (IV) A
SUMMARY OF THE STATEMENTS BY ANY PUBLIC HEARING CONDUCTED IN  CONNECTION
WITH  THE  PROJECT;  AND  (V)  ANY  OTHER  MATERIAL SUPPORTING DOCUMENTS
PERTAINING TO THE PROJECT.
  7. THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL CONDUCT INVESTIGATIONS
OF MATERIAL COMPLAINTS CONCERNING POSSIBLE  VIOLATIONS  OF  ANY  UNIFORM
INDUSTRIAL  DEVELOPMENT  AGENCY  PROJECT AGREEMENT AND SHALL RECEIVE THE
FULL COOPERATION OF, AND ACCESS TO ALL RELEVANT BOOKS  AND  RECORDS  OF,
THE  AGENCY,  THE  MUNICIPALITY FOR WHOSE BENEFIT THE AGENCY IS CREATED,
THE PROJECT OCCUPANT AND ANY TENANT OR SUBTENANT AND ANY STATE AGENCY IS
CONDUCTING ANY SUCH INVESTIGATION. THE DEPARTMENT OF  ECONOMIC  DEVELOP-
MENT SHALL NOTIFY THE AGENCY AND THE STATE COMPTROLLER OF THE RESULTS OF
ANY SUCH INVESTIGATIONS.
  S  3.  Section 862 of the general municipal law is amended by adding a
new subdivision 3 to read as follows:
  (3) NO FUNDS OF THE AGENCY SHALL BE USED  FOR  ADVERTISING  OR  PROMO-
TIONAL  MATERIALS WHICH DEPICT ELECTED OR APPOINTED GOVERNMENT OFFICIALS
IN EITHER PRINT OR ELECTRONIC MEDIA.
  S 4. Subdivision 4 of section 874 of the  general  municipal  law,  as
amended  by  chapter  357  of  the  laws  of 1993, is amended to read as
follows:
  (4) (a) The agency shall establish a uniform [tax  exemption]  PAYMENT
IN  LIEU  OF  TAX (PILOT) policy, with input from affected tax jurisdic-
tions, which shall be applicable to the provision of  financial  assist-
ance  pursuant  to  section eight hundred fifty-nine-a of this [chapter]
TITLE and shall provide guidelines for the claiming  of  real  property,
mortgage  recording,  and  sales tax exemptions.   Such guidelines shall
include, but not be limited to: period of exemption; PAYMENTS IN LIEU OF
TAXES, AS A percentage of [exemption] TAXES THAT WOULD HAVE BEEN  LEVIED
BY OR ON BEHALF OF AFFECTED TAX JURISDICTIONS IF THE PROJECT WAS NOT TAX
EXEMPT  BY    REASON  OF AGENCY INVOLVEMENT; types of projects for which
exemptions can be claimed; procedures for payments in lieu of taxes  and
instances  in  which  real  property appraisals are to be performed as a
part of an application for tax exemption; in addition, agencies shall in
adopting such policy consider such issues as:  the  extent  to  which  a
project  will create or retain permanent, private sector jobs; the esti-
mated value of any tax exemptions to be provided; whether  affected  tax
jurisdictions  shall  be reimbursed by the project occupant if a project
does not fulfill the purposes for which an exemption was  provided;  the
impact  of  a  proposed  project on existing and proposed businesses and
economic development projects in the vicinity;  the  amount  of  private
sector  investment  generated  or likely to be generated by the proposed
project; the demonstrated public support for the proposed  project;  the
likelihood  of  accomplishing  the proposed project in a timely fashion;
the effect of the proposed project upon the environment; the  extent  to
which  the  proposed  project  will  require the provision of additional
services, including, but not limited to additional  educational,  trans-
portation, police, emergency medical or fire services; and the extent to
which  the  proposed  project will provide additional sources of revenue
for municipalities and school districts.
  (b) The agency shall establish a  procedure  for  deviation  from  the
uniform  [tax  exemption] PAYMENT IN LIEU OF TAX (PILOT) policy required
pursuant to this subdivision. The agency shall set forth in writing  the
reasons  for  deviation  from  such policy, and shall further notify the
affected local taxing jurisdictions of the proposed deviation from  such

S. 5551                             7

policy and the reasons therefor.  SUCH NOTICE TO THE AFFECTED TAX JURIS-
DICTIONS  SHALL BE GIVEN TO THE CHIEF EXECUTIVE OFFICER OF EACH AFFECTED
TAX JURISDICTION AT LEAST THIRTY DAYS PRIOR TO THE MEETING OF THE AGENCY
AT  WHICH  THE  AGENCY  SHALL  CONSIDER WHETHER TO APPROVE SUCH PROPOSED
DEVIATION. PRIOR TO TAKING FINAL ACTION  AT  SUCH  MEETING,  THE  AGENCY
SHALL  REVIEW  AND  RESPOND  TO  ANY  CORRESPONDENCE  RECEIVED  FROM ANY
AFFECTED TAX JURISDICTION REGARDING SUCH  DEVIATION.  THE  AGENCY  SHALL
ALLOW ANY REPRESENTATIVE OF AN AFFECTED TAX JURISDICTION PRESENT AT SUCH
MEETING TO ADDRESS THE AGENCY REGARDING SUCH PROPOSED DEVIATION.
  S  5. The general municipal law is amended by adding a new section 885
to read as follows:
  S 885. DISSOLUTION AND MERGER OF AGENCIES. (1) ANY INDUSTRIAL DEVELOP-
MENT AGENCY ESTABLISHED FOR THE BENEFIT OF A TOWN, VILLAGE OR CITY WITH-
IN A COUNTY MAY DISSOLVE AND SIMULTANEOUSLY MERGE  WITH  THE  INDUSTRIAL
DEVELOPMENT  AGENCY  ESTABLISHED  FOR THE BENEFIT OF THE COUNTY IN WHICH
THE AGENCY ESTABLISHED FOR THE BENEFIT OF THE TOWN, VILLAGE OR  CITY  IS
LOCATED,  IF  SUCH  A COUNTY AGENCY HAS BEEN ESTABLISHED, SUBJECT TO THE
PROVISIONS OF THIS SECTION. UPON THE EFFECTIVE DATE OF  THE  DISSOLUTION
AND  MERGER,  THE  TOWN,  VILLAGE  OR  CITY  AGENCY, NOTWITHSTANDING THE
PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION EIGHT  HUNDRED
FIFTY-SIX  AND  SECTION  EIGHT  HUNDRED  EIGHTY-TWO OF THIS TITLE, SHALL
CEASE TO EXIST AND ALL THE RIGHTS, TITLES,  INTERESTS,  OBLIGATIONS  AND
LIABILITIES  OF SUCH AGENCIES, INCLUDING, BUT NOT LIMITED TO, THE RIGHTS
AND OBLIGATIONS UNDER ANY  BOND,  NOTE,  CONTRACT  OR  OTHER  AGREEMENT,
EXPRESS  OR IMPLIED, SHALL DEVOLVE TO, BE VESTED IN AND POSSESSED BY THE
COUNTY AGENCY, WHICH SHALL IN ALL RESPECTS AND FOR ALL PURPOSES  BE  THE
SUCCESSOR IN INTEREST TO SUCH TOWN, VILLAGE OR CITY AGENCY.
  (2) IN THE EVENT THAT AN AGENCY PROPOSES TO DISSOLVE OR MERGE PURSUANT
TO  SUBDIVISION  ONE  OF  THIS  SECTION, THE GOVERNING BODY OF THE TOWN,
VILLAGE OR CITY FOR WHOSE BENEFIT THE AGENCY WAS ESTABLISHED, IN CONSUL-
TATION WITH THE MEMBERS OF THE AGENCY, MEMBERS OF THE AGENCY ESTABLISHED
FOR THE BENEFIT OF THE COUNTY, AND THE CHIEF EXECUTIVE  OF  THE  COUNTY,
SHALL ADOPT A PLAN SETTING FORTH, AT A MINIMUM:
  (A) THE NAME AND DATE OF ESTABLISHMENT OF THE AGENCY OR AGENCIES TO BE
DISSOLVED;
  (B)  THE  NAMES OF THE MEMBERS OF SUCH AGENCY, SPECIFYING THE IDENTITY
OF THE CHAIRPERSON;
  (C) THE UNDERLYING PURPOSE OF THE DISSOLUTION  AND  MERGER,  INCLUDING
ECONOMIES AND EFFICIENCIES THAT ARE PROJECTED AS A RESULT THEREOF;
  (D)  A  STATEMENT, CONTAINING BOTH CURRENT INFORMATION AND INFORMATION
PROJECTED TO THE PROPOSED DATE OF THE DISSOLUTION AND  MERGER,  OF:  (I)
THE  OUTSTANDING  BONDS, NOTES AND ANY OTHER OBLIGATIONS OR LIABILITIES;
(II) ACTUAL AND ACCRUED REVENUES; (III) EACH PROJECT FOR WHICH FINANCIAL
ASSISTANCE HAS BEEN PROVIDED, THE TYPE OF FINANCIAL ASSISTANCE  PROVIDED
AND THE STATUS OF THE PROJECT; AND (IV) THE GENERAL TERMS AND CONDITIONS
OF EACH CONTRACT, INCLUDING PAYMENT IN LIEU OF TAX AGREEMENTS;
  (E)  THE  TERMS  AND CONDITIONS OF THE PROPOSED DISSOLUTION AND MERGER
INCLUDING A STATEMENT ACKNOWLEDGING THAT THE COUNTY AGENCY  SHALL,  UPON
THE  EFFECTIVE  DATE  OF  THE DISSOLUTION AND MERGER, SUCCEED TO ALL THE
RIGHTS, TITLES, INTERESTS, OBLIGATIONS AND LIABILITIES, INCLUDING BONDS,
NOTES AND OTHER OBLIGATIONS AND CONTRACTUAL RIGHTS AND  OBLIGATIONS,  OF
THE DISSOLVED AND MERGED TOWN, VILLAGE OR CITY AGENCIES;
  (F) A STATEMENT OF ANY AMENDMENTS OR CHANGES TO THE CERTIFICATE OF THE
COUNTY AGENCY FILED IN THE OFFICE OF THE SECRETARY OF STATE NECESSITATED
BY THE MERGER; AND

S. 5551                             8

  (G) A STATEMENT THAT THE PLAN OF MERGER HAS BEEN REVIEWED AND APPROVED
BY  COUNSEL  FOR  THE  TOWN,  VILLAGE OR CITY AGENCY AND COUNSEL FOR THE
COUNTY AGENCY, INDICATING THAT EACH COUNSEL HAS CONSIDERED  THE  IMPACT,
IF  ANY, OF THE DISSOLUTION AND MERGER ON: (I) THE RIGHTS OF ANY EMPLOY-
EES  OF  THE  MERGING  AGENCIES;  AND  (II)  THE RECIPIENTS OF FINANCIAL
ASSISTANCE FROM THE AGENCIES.
  (3) NO LATER THAN JULY FIRST, TWO THOUSAND FIFTEEN,  THE  COMMISSIONER
OF  ECONOMIC DEVELOPMENT SHALL UNDERTAKE A STUDY TO IDENTIFY THOSE TOWN,
VILLAGE OR CITY AGENCIES THAT, AS  DETERMINED  BY  THE  COMMISSIONER  OF
ECONOMIC  DEVELOPMENT,  HAVE  NOT UNDERTAKEN SIGNIFICANT ACTIVITY WITHIN
THE PRIOR FIVE YEARS AND, IF DEEMED APPROPRIATE BY THE  COMMISSIONER  OF
ECONOMIC  DEVELOPMENT, SUCH COMMISSIONER SHALL RECOMMEND THAT SUCH AGEN-
CIES BE DISSOLVED AND MERGED INTO THE COUNTY AGENCY. THE COMMISSIONER OF
ECONOMIC DEVELOPMENT'S FINDINGS SHALL BE REPORTED NO LATER THAN DECEMBER
THIRTY-FIRST, TWO THOUSAND FIFTEEN, TO THE  GOVERNOR,  THE  STATE  COMP-
TROLLER,  THE  TEMPORARY  PRESIDENT  OF  THE  SENATE, THE SPEAKER OF THE
ASSEMBLY AND TO EACH AGENCY IDENTIFIED IN THE REPORT.
  S 6. Subdivisions 1 and 2 of section 1953-a of the public  authorities
law,  subdivision  1  as  amended by chapter 357 of the laws of 1993 and
subdivision 2 as added by chapter 356 of the laws of 1993,  are  amended
to read as follows:
  1.  The  authority  must adopt a resolution describing the project and
the financial  assistance  that  the  authority  is  contemplating  with
respect  to  such  project. Such assistance shall be consistent with the
uniform [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) policy adopted by
the agency pursuant to  subdivision  one  of  section  nineteen  hundred
sixty-three-a  of  this  [chapter] TITLE, unless the agency has followed
procedures for deviation from such policy specified in  subdivision  two
of such section.
  2.  The authority must hold a public hearing BEFORE A QUORUM OF AGENCY
MEMBERS with respect to the project and the proposed  financial  assist-
ance being contemplated by the authority. At said public hearing, inter-
ested  parties shall be provided reasonable opportunity, both orally and
in writing, to present their views with respect to the project.
  S 7. Section 1963-a of the public authorities law, as amended by chap-
ter 357 of the laws of 1993, is amended to read as follows:
  S 1963-a. Uniform tax exemption policy. 1. The authority shall  estab-
lish  a  uniform  [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) policy,
with input from affected local  taxing  jurisdictions,  which  shall  be
applicable  to  provisions  of  financial assistance pursuant to section
nineteen hundred fifty-three-a of this [chapter] TITLE and shall provide
guidelines for the claiming of real property,  mortgage  recording,  and
sales  tax exemptions. Such guidelines shall include, but not be limited
to: period of exemption; PAYMENTS IN LIEU OF TAXES, AS A  percentage  of
[exemption]  TAXES  THAT  WOULD  HAVE  BEEN  LEVIED  BY  OR ON BEHALF OF
AFFECTED TAX JURISDICTIONS IF THE PROJECT WAS NOT TAX EXEMPT  BY  REASON
OF  AGENCY  INVOLVEMENT;  types  of projects for which exemptions can be
claimed; procedures for payments in lieu of taxes and instances in which
real property appraisals are to be performed as a part of an application
for tax exemption; in addition, the authority in  adopting  such  policy
shall consider such issues as: the extent to which a project will create
or retain permanent, private sector jobs; the estimated value of any tax
exemption  to  be provided; whether affected tax jurisdictions should be
reimbursed by the project occupant if a project  does  not  fulfill  the
purposes  for  which an exemption was provided; the impact of a proposed
project on existing and proposed  businesses  and  economic  development

S. 5551                             9

projects in the vicinity; the amount of private sector investment gener-
ated or likely to be generated by the proposed project; the demonstrated
public support for the proposed project; the likelihood of accomplishing
the  proposed  project  in  a timely fashion; the effect of the proposed
project upon the environment; the extent to which the  proposed  project
will  require  the  provision of additional services, including, but not
limited to additional  educational,  transportation,  police,  emergency
medical  or  fire services; and the extent to which the proposed project
will provide additional sources or revenue for municipalities and school
districts.
  2. The authority shall establish a procedure for  deviation  from  the
uniform  [tax  exemption] PAYMENT IN LIEU OF TAX (PILOT) policy required
pursuant to this section. The authority shall set forth in  writing  the
reasons  for  deviation  from  such policy, and shall further notify the
affected tax jurisdictions of the proposed deviation  from  such  policy
and the reasons therefor.
  S  8.  Subdivisions  1 and 2 of section 2307 of the public authorities
law, subdivision 1 as amended by chapter 357 of the  laws  of  1993  and
subdivision  2  as added by chapter 356 of the laws of 1993, are amended
to read as follows:
  1. The authority must adopt a resolution describing  the  project  and
the  financial  assistance  that  the  authority  is  contemplating with
respect to such project. Such assistance shall be  consistent  with  the
uniform [tax exemption] PAYMENT IN LIEU OF TAX (PILOT) policy adopted by
the  agency  pursuant to subdivision one of section twenty-three hundred
fifteen of this [chapter] TITLE, unless the agency has  followed  proce-
dures  for  deviation  from  such policy specified in subdivision two of
such section.
  2. The authority must hold a public hearing BEFORE A QUORUM OF  AGENCY
MEMBERS  with  respect to the project and the proposed financial assist-
ance being contemplated by the authority. At said public hearing, inter-
ested parties shall be provided reasonable opportunity, both orally  and
in writing, to present their views with respect to the project.
  S 9. Section 2315 of the public authorities law, as amended by chapter
357 of the laws of 1993, is amended to read as follows:
  S 2315. Uniform tax exemption policy. 1. The authority shall establish
a  uniform  [tax  exemption] PAYMENT IN LIEU OF TAX (PILOT) policy, with
input from affected local taxing jurisdictions, which shall be  applica-
ble  to  provisions  of financial assistance pursuant to section twenty-
three hundred seven of this [chapter] TITLE and shall provide guidelines
for the claiming of real property, mortgage  recording,  and  sales  tax
exemptions. Such guidelines shall include, but not be limited to: period
of  exemption; PAYMENTS IN LIEU OF TAXES, AS A percentage of [exemption]
TAXES THAT WOULD HAVE BEEN LEVIED BY OR ON BEHALF OF AFFECTED TAX JURIS-
DICTIONS IF THE PROJECT WAS NOT TAX EXEMPT BY REASON OF AGENCY  INVOLVE-
MENT;  types of projects for which exemptions may be claimed; procedures
for payments in lieu of taxes  and  instances  in  which  real  property
appraisals  are  to  be  performed  as  a part of an application for tax
exemption; in addition, the authority  in  adopting  such  policy  shall
consider  such  issues  as: the extent to which a project will create or
retain permanent, private sector jobs; the estimated value  of  any  tax
exemption  to  be provided; whether affected tax jurisdictions should be
reimbursed by the project occupant if a project  does  not  fulfill  the
purposes  for  which an exemption was provided; the impact of a proposed
project on existing and proposed  businesses  and  economic  development
projects in the vicinity; the amount of private sector investment gener-

S. 5551                            10

ated or likely to be generated by the proposed project; the demonstrated
public support for the proposed project; the likelihood of accomplishing
the  proposed  project  in  a timely fashion; the effect of the proposed
project  upon  the environment; the extent to which the proposed project
will require the provision of additional services,  including,  but  not
limited  to  additional  educational,  transportation, police, emergency
medical or fire services; and the [extend] EXTENT to which the  proposed
project  will  provide  additional sources of revenue for municipalities
and school districts.
  2. The authority shall establish a procedure for  deviation  from  the
uniform  [tax  exemption] PAYMENT IN LIEU OF TAX (PILOT) policy required
pursuant to this section. The authority shall set forth in  writing  the
reasons  for  deviation  from  such policy, and shall further notify the
affected local taxing jurisdictions of the proposed deviation from  such
policy and the reasons therefor.
  S 10. This act shall take effect immediately.

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Senate Bill S5551

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Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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2013-S5551 (ACTIVE) - Details

2013-S5551 (ACTIVE) - Summary

2013-S5551 (ACTIVE) - Sponsor Memo

2013-S5551 (ACTIVE) - Bill Text download pdf

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