S T A T E   O F   N E W   Y O R K
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                                  10254

                          I N  A S S E M B L Y

                              May 18, 2016
                               ___________

Introduced  by  M. of A. OAKS -- read once and referred to the Committee
  on Governmental Operations

AN ACT directing the New York state comptroller,  in  coordination  with
  the  departments  of  economic development and taxation and finance to
  conduct an audit of all state economic development programs

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

  Section  1. Legislative findings. The legislature finds that the state
and local governments of New York play an important role in facilitating
economic development, reducing regulations and  the  creation  of  jobs.
State  funding  for  economic development should be transparent, stream-
lined, and encourage job creation in all regions of the state.    Empire
state   development  manages  statewide  economic  development  programs
through several subsidiaries, each with its  own  board  and  staff.  In
addition,  there  are  approximately  twenty  state  agencies performing
economic development functions.  At  the  local  level,  there  are  one
hundred  fourteen  industrial  development  agencies,  over five hundred
local development  corporations,  eighty-two  empire  zone  boards,  one
hundred   fourteen  business  improvement  districts,  forty-nine  urban
renewal and community development agencies, and  ten  regional  economic
development councils, all engaging in economic development activity.
  Most  of  the  state's economic development programs, especially those
providing direct financial assistance, are operated by the department of
economic development and the empire state development  corporation.  The
majority  of this business support is in the form of grants and loans to
businesses and to local units of government to fund economic development
activities. This legislation is  intended  to  improve  these  important
tools  for economic development by streamlining applications and report-
ing, strengthening accountability mechanisms,  and  encouraging  quality
job creation for all New Yorkers.
  S  2.  The New York state comptroller in coordination with the commis-
sioners of the departments of  economic  development  and  taxation  and
finance  shall  conduct  an  audit  of  all  state  economic development
programs. Such audit shall include but not be limited to:

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

                                                           LBD14849-01-6

A. 10254                            2

  (a) identifying all programs by type and funding source;
  (b)  identifying  the types of businesses that have received financial
assistance;
  (c) reviewing information available on job creation or other  data  on
economic expansion;
  (d)  analyzing  the  geographic  distribution  of financial assistance
throughout the state;
  (e) reviewing a sample of loans and grants to determine  if  statutory
requirements for the programs were followed; and
  (f)  reviewing  information available on economic development programs
in other states.
  The New York state comptroller in coordination with the  commissioners
of  the  departments  of  economic  development and taxation and finance
shall develop all necessary rules and regulations to conduct an audit of
New York  state  economic  development  programs  as  outlined  in  this
section.    Following  the review and audit of such economic development
programs the agencies shall recommend all necessary changes to make such
economic development programs more transparent, streamlined, and  ensure
that  such  programs  are meeting the goals of the laws that established
them and providing for a return on investment to the state.  The results
of this audit must be made available for public  review online by  Janu-
ary 1, 2017.
  S  3.  After  the  conclusion  of  the  audit, the commissioner of the
department of economic development in consultation with the commissioner
of taxation and finance shall study  the  feasibility  of  reducing  the
number  of  economic development programs currently offered by the state
and its subsidiaries and replacing these programs with  one  centralized
competitive program. A report of the study, outlining the impact of each
of  the  above  steps,  shall  be filed with the governor, the temporary
president of the senate, the minority leader of the senate, the  speaker
of  the  assembly  and  the minority leader of the assembly on or before
December 31, 2017.
  S 4. This act shall take effect immediately.