senate Bill S5867

Signed By Governor
2015-2016 Legislative Session

Relates to the accountability and efficiency of industrial development agencies and authorities

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Current Bill Status - Signed by Governor


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 18, 2015 signed chap.563
Dec 07, 2015 delivered to governor
Jun 19, 2015 returned to senate
passed assembly
Jun 18, 2015 ordered to third reading rules cal.628
substituted for a7915
Jun 17, 2015 referred to ways and means
delivered to assembly
passed senate
ordered to third reading cal.1734
Jun 09, 2015 referred to rules

Votes

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Co-Sponsors

S5867 - Bill Details

See Assembly Version of this Bill:
A7915
Law Section:
General Municipal Law
Laws Affected:
Amd §§859-a & 874, Gen Muni L

S5867 - Bill Texts

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Relates to the accountability and efficiency of industrial development agencies and authorities; requires each industrial development agency to develop a standard application form to be used by the agency to accept requests for financial assistance from all individuals, firms, companies and developers; further requires industrial development agencies to develop policies for the suspension or discontinuance of financial assistance of PILOT.

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BILL NUMBER: S5867

TITLE OF BILL : An act to amend the general municipal 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, uniform criteria for the evaluation
and selection for each category of projects for which financial
assistance is provided, and uniform project agreements.

SUMMARY OF PROVISIONS :

Section one of the bill would add three new subdivisions to General
Municipal Law § 859-a:

Standard application form - A new subdivision four would added to
General Municipal Law § 859-a to require each IDA to develop a
standard application form for requests for financial assistance from
IDAs. The form would be submitted by or on behalf of the applicant,
and subscribed and affirmed under penalties of perjury as true,
accurate and complete. The form would be required to contain certain
information including, among other things: the name and address of the
applicant; a description of the proposed project; the amount and type
of financial assistance requested; an estimate of capital costs of the
project; the projected number of full time equivalent jobs that would
be retained or created if the request for financial assistance is
granted as well as certain other information relating to those jobs;
and a statement acknowledging that the submission of any knowingly
false or misleading information may lead to immediate termination of
any financial assistance and reimbursement of an amount equal to all
or part of any tax exemptions claimed as a result of the project. The
IDA could require supplemental information as it determines to be
necessary and appropriate, including supporting documents and
information provided by or on be half of the applicant.

Uniform evaluation criteria - A new subdivision five would be to
General Municipal Law § 859-a to require each IDA to develop, and
adopt by resolution, uniform criteria for the evaluation and selection
of each category of projects for which financial assistance would be
provided. At minimum, the criteria would require, among other things,
that, prior to the approval of the provision of any financial
assistance, the IDA: assess all material information included in
connection with the application, as necessary to afford a reasonable
basis for its decision to provide financial assistance; and undertake
a written cost-benefit analysis that identifies the extent to which a
project will create or retain permanent, private sector jobs, the
estimated value of any tax exemptions to be provided, the amount of
private sector investment generated or likely to be generated by the
proposed project, the likelihood of accomplishing the proposed project
in a timely fashion, and the extent to which the proposed project will
provide additional sources of revenue for municipalities and school
districts.

Uniform project agreement - A new subdivision six would be added to
General Municipal Law § 859-a to require each IDA 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 contain certain provisions, including:
a description of the project and financial assistance; a requirement
for an annual certification by the project owner, occupant or operator
of full time equivalent jobs created and retained as a result of the
financial assistance; the dates when payments in lieu of tax (PILOT)
payments are to be made and an estimate of the amounts or formula(s)
by which those amounts are calculated made (or a copy of an executed
PILOT agreement); a provision for the suspension or discontinuance of
financial assistance, or for the modification of any payment in lieu
of tax agreement to require increased payments, in accordance with
policies developed by the IDA; a provision for the return of all or a
part of the financial assistance provided for the project, as provided
for in policies developed by the IDA; and a provision that the
business certify, under penalty of perjury, that it is in substantial
compliance with all local, state and federal tax, worker protection
and environmental laws, rules and regulations.

Section two of the bill would add three new subdivisions to section
874 of the General Municipal Law to require each IDA to: (1) develop
policies for the suspension or discontinuance of financial assistance,
or for the modification of any payment in lieu of tax agreement to
require increased payments under specified circumstances: (2) develop
policies for the return of all or a part of the financial assistance
provided for a project, including all or part of the amount of any tax
exemptions, as specified in the policy. All such returned amounts of
tax exemptions would be required to be redistributed to the
appropriate affected tax jurisdiction, unless agreed to otherwise by
any local taxing jurisdiction: and (3) at least annually assess the
progress of each project toward achieving the investment, job
retention or creation, or other objectives of the project indicated in
the project application. These assessments would be required to be
provided to board members.

Section three of the bill would provide that the act take effect 180
days after it shall have become law. It would further provide that
that the bill would apply in full force and effect to the Cities of
Troy and Auburn Industrial Development Authorities established
pursuant to the Public Authorities law. New subdivision 12 that would
be added to General Municipal Law § 874 would apply to projects
approved on or after the effective date of the bill.

JUSTIFICATION :

IDAs are public benefit corporations, created by special act of the
State Legislature for the benefit of one or more municipalities and
the inhabitants thereof. Article 18-A of the General Municipal Law
provides that the purposes of IDAs are to promote, develop, encourage
and assist in the acquiring, constructing, reconstructing, improving,
maintaining, equipping and furnishing industrial, manufacturing,
warehousing, commercial, research and recreation and certain other
listed facilities, and thereby advance job opportunities health,
general prosperity and economic welfare of the people of the State of
New York and to improve their recreation opportunities, prosperity and
standard of living.

To fulfill their statutory purposes, IDAs are authorized to provide
"financial assistance" for certain types of "projects" (see e.g.
General Municipal Law §§ 854 (4), (14), 859 (1) (b), 864, 874).
"Financial assistance" includes the issuance of bonds by the IDA to
finance construction of a project and "straight-lease transactions."
Since the property and activities of IDAs are tax exempt (General
Municipal Law § 874; Real Property Tax Law § 412-a), the IDA may "pass
through" the benefits of certain tax exemptions (real property, sales,
mortgage recording taxes) to private entities which undertake
projects. The "pass through" can be in addition to bond financing, or
done separately, generally through what is known as a "straight- lease
transaction." The loss of revenue associated with the tax exemption
pass-through can be mitigated if the IDA enters into what is known as
a "payment in lieu of tax" 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 be due as taxes had the project
not been an IDA project. In addition, after the project is completed,
and the IDA relinquishes title, jurisdiction, control or supervision
of the property, the property usually becomes taxable and its assessed
value is often increased to account for improvements made during the
period of IDA involvement.

Because of reform legislation enacted in 1993 (Chapter 356), IDAs are
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 (General
Municipal Law § 859). Also, the Public Authorities Accountability Act
of 2005 (Chapter 766) and the Public Authorities Reform Act of 2009
(Chapter 506) added requirements for governance, reporting, auditing
and property disposition that will 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 well-being of a community and the 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 if provided. Instead, audits conducted by OSC have shown
that the process is too often ad hoc and inconsistent from IDA to IDA,
and even from project to project within an individual IDA. By the same
token, several audits found that some IDAs were performing effectively
and noted certain best practices. Some of the provisions of this bill
were drawn from those best practices.

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 evaluate
each application should be 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.

Also, each IDA project would be undertaken pursuant to a uniform
project agreement that would set forth the terms and conditions under
which financial assistance would be provided. It would provide a
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. To help ensure that the affected
tax jurisdictions do not suffer a loss of tax revenues for projects
that do not meet job creation and retention goals or in other
specified circumstance, the agreement would provide for the suspension
or discontinuance of financial assistance, or for the modification of
PILOT agreements, in accordance with polices developed by the IDA. In
addition, the agreement would provide for the return of all or part of
financial assistance as provided for IDA policies. Correspondingly,
IDAs would be required to develop such policies, setting forth
circumstances when there would be a suspension or discontinuance of
financial assistance, or the return of such assistance.

We believe 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 monitorship
once IDA benefits are conferred. The Comptroller urges passage of
this legislation.

PRIOR LEGISLATIVE HISTORY :

New bill.

FISCAL IMPLICATIONS :

None.

EFFECTIVE DATE :
This act shall take effect 180 days after it shall have become a law
and, shall apply to industrial development agencies created pursuant
to article 18-A of the general municipal law and shall also apply with
full force and effect to the cities of Troy and Auburn industrial
development authorities established pursuant to the public authorities
law; provided, however, the provisions of subdivision 12 of section
874 of the general municipal law as added by section 2 of this act
shall apply only to projects approved on or after the effective date
of this act.
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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5867

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 9, 2015
                               ___________

Introduced by Sen. MARCHIONE -- (at request of the State Comptroller) --
  read  twice  and  ordered printed, and when printed to be committed to
  the Committee on Rules

AN ACT to amend the general municipal law, in relation to  the  account-
  ability and efficiency of industrial development agencies and authori-
  ties

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

  Section 1. Section 859-a of the general municipal law  is  amended  by
adding three new subdivisions 4, 5 and 6 to read as follows:
  4.  EACH AGENCY 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. 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. THE STANDARD APPLICATION FORM SHALL INCLUDE  THE  FOLLOW-
ING,  AND  MAY INCLUDE SUCH OTHER SUPPLEMENTAL INFORMATION AS DETERMINED
TO BE NECESSARY AND APPROPRIATE  BY  THE  AGENCY,  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 BY REASON OF AGENCY INVOLVEMENT IN THE PROJECT;
  (D) A STATEMENT THAT THERE IS A LIKELIHOOD THAT THE PROJECT WOULD  NOT
BE  UNDERTAKEN  BUT  FOR THE FINANCIAL ASSISTANCE PROVIDED BY THE AGENCY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11236-02-5

S. 5867                             2

OR, IF THE PROJECT COULD  BE  UNDERTAKEN  WITHOUT  FINANCIAL  ASSISTANCE
PROVIDED BY THE AGENCY, A STATEMENT INDICATING WHY THE PROJECT SHOULD BE
UNDERTAKEN BY THE AGENCY;
  (E)  AN  ESTIMATE OF CAPITAL COSTS OF THE PROJECT, INCLUDING ALL COSTS
OF REAL PROPERTY AND EQUIPMENT ACQUISITION AND BUILDING CONSTRUCTION  OR
RECONSTRUCTION, FINANCED FROM PRIVATE SECTOR SOURCES, AN ESTIMATE OF THE
PERCENTAGE  OF PROJECT COSTS FINANCED FROM PUBLIC SECTOR SOURCES, AND AN
ESTIMATE OF BOTH THE AMOUNT TO BE INVESTED  BY  THE  APPLICANT  AND  THE
AMOUNT TO BE BORROWED TO FINANCE THE PROJECT.
  (F)  THE  PROJECTED  NUMBER OF FULL TIME EQUIVALENT JOBS THAT WOULD BE
RETAINED AND THAT WOULD BE CREATED IF THE REQUEST FOR FINANCIAL  ASSIST-
ANCE  IS  GRANTED, THE PROJECTED TIMEFRAME FOR THE CREATION OF NEW JOBS,
THE ESTIMATED SALARY AND FRINGE BENEFIT AVERAGES OR RANGES  FOR  CATEGO-
RIES  OF  THE  JOBS THAT WOULD BE RETAINED OR CREATED IF THE REQUEST FOR
FINANCIAL ASSISTANCE IS GRANTED, AND AN ESTIMATE OF THE NUMBER OF  RESI-
DENTS  OF  THE  ECONOMIC  DEVELOPMENT  REGION AS ESTABLISHED PURSUANT TO
SECTION TWO HUNDRED THIRTY OF THE ECONOMIC DEVELOPMENT LAW OR THE  LABOR
MARKET  AREA  AS  DEFINED BY THE AGENCY, IN WHICH THE PROJECT IS LOCATED
THAT WOULD FILL SUCH JOBS.  THE LABOR MARKET AREA DEFINED BY THE  AGENCY
FOR THIS PURPOSE MAY INCLUDE NO MORE THAN SIX CONTIGUOUS COUNTIES IN THE
STATE, INCLUDING THE COUNTY IN WHICH THE PROJECT IS TO BE LOCATED;
  (G)  A  STATEMENT TO THE EFFECT THAT THE PROVISIONS OF SUBDIVISION ONE
OF SECTION EIGHT HUNDRED SIXTY-TWO OF THIS CHAPTER WILL NOT BE  VIOLATED
IF FINANCIAL ASSISTANCE IS PROVIDED FOR THE PROPOSED PROJECT;
  (H)  A STATEMENT THAT THE OWNER, OCCUPANT OR OPERATOR RECEIVING FINAN-
CIAL ASSISTANCE IS IN  SUBSTANTIAL  COMPLIANCE  WITH  APPLICABLE  LOCAL,
STATE  AND  FEDERAL TAX, WORKER PROTECTION AND ENVIRONMENTAL LAWS, RULES
AND REGULATIONS; AND
  (I) A STATEMENT ACKNOWLEDGING THAT THE  SUBMISSION  OF  ANY  KNOWINGLY
FALSE  OR  KNOWINGLY  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 BY REASON OF
AGENCY INVOLVEMENT IN THE PROJECT.
  5. EACH AGENCY SHALL DEVELOP, AND ADOPT BY RESOLUTION, UNIFORM  CRITE-
RIA  FOR  THE EVALUATION AND SELECTION FOR EACH CATEGORY OF PROJECTS FOR
WHICH FINANCIAL ASSISTANCE WILL BE PROVIDED. AT A MINIMUM, THE  CRITERIA
SHALL  REQUIRE THAT, FOR EACH PROJECT, THE FOLLOWING MUST OCCUR PRIOR TO
THE APPROVAL OF THE PROVISION OF FINANCIAL ASSISTANCE:
  (A) AN ASSESSMENT BY THE AGENCY OF ALL MATERIAL  INFORMATION  INCLUDED
IN  CONNECTION  WITH THE APPLICATION FOR FINANCIAL ASSISTANCE, AS NECES-
SARY TO AFFORD A REASONABLE BASIS FOR THE  DECISION  BY  THE  AGENCY  TO
PROVIDE FINANCIAL ASSISTANCE FOR THE PROJECT;
  (B)  A WRITTEN COST-BENEFIT ANALYSIS BY THE AGENCY THAT IDENTIFIES THE
EXTENT TO WHICH A PROJECT  WILL  CREATE  OR  RETAIN  PERMANENT,  PRIVATE
SECTOR  JOBS;  THE ESTIMATED VALUE OF ANY TAX EXEMPTIONS TO BE PROVIDED;
THE AMOUNT OF PRIVATE SECTOR INVESTMENT GENERATED OR LIKELY TO BE GENER-
ATED BY THE  PROPOSED  PROJECT;  THE  LIKELIHOOD  OF  ACCOMPLISHING  THE
PROPOSED  PROJECT  IN  A  TIMELY  FASHION;  AND  THE EXTENT TO WHICH THE
PROPOSED PROJECT WILL PROVIDE ADDITIONAL SOURCES OF REVENUE FOR  MUNICI-
PALITIES  AND SCHOOL DISTRICTS; AND ANY OTHER PUBLIC BENEFITS THAT MIGHT
OCCUR AS A RESULT OF THE PROJECT;
  (C) A STATEMENT BY THE APPLICANT THAT THE PROJECT, AS OF THE  DATE  OF
THE  APPLICATION,  IS  IN  SUBSTANTIAL COMPLIANCE WITH ALL PROVISIONS OF
THIS ARTICLE INCLUDING, BUT NOT  LIMITED  TO,  THE  PROVISIONS  OF  THIS
SECTION  AND  SUBDIVISION ONE OF SECTION EIGHT HUNDRED SIXTY-TWO OF THIS
CHAPTER; AND

S. 5867                             3

  (D) 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.
  6.  EACH  AGENCY SHALL DEVELOP A UNIFORM AGENCY PROJECT AGREEMENT THAT
SETS FORTH TERMS AND CONDITIONS UNDER WHICH FINANCIAL  ASSISTANCE  SHALL
BE  PROVIDED.  THE UNIFORM AGENCY PROJECT AGREEMENT SHALL BE USED BY THE
AGENCY AND NO FINANCIAL ASSISTANCE SHALL BE PROVIDED IN THE  ABSENCE  OF
THE EXECUTION OF SUCH AN AGREEMENT. THE UNIFORM 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 OWNER, OCCUPANT OR OPERATOR RECEIVING  FINAN-
CIAL  BENEFITS  TO PROVIDE ANNUALLY A CERTIFIED STATEMENT AND DOCUMENTA-
TION: (I) ENUMERATING THE FULL TIME EQUIVALENT  JOBS  RETAINED  AND  THE
FULL  TIME  EQUIVALENT JOBS CREATED AS A RESULT OF THE FINANCIAL ASSIST-
ANCE, BY CATEGORY, INCLUDING FULL TIME EQUIVALENT  INDEPENDENT  CONTRAC-
TORS  OR  EMPLOYEES  OF INDEPENDENT CONTRACTORS THAT WORK AT THE PROJECT
LOCATION, AND (II) INDICATING THAT THE SALARY AND FRINGE  BENEFIT  AVER-
AGES OR RANGES FOR CATEGORIES OF JOBS RETAINED AND JOBS CREATED THAT WAS
PROVIDED  IN  THE  APPLICATION  IS STILL ACCURATE AND IF IT IS NOT STILL
ACCURATE, PROVIDING A REVISED LIST OF SALARY AND FRINGE BENEFIT AVERAGES
OR RANGES FOR CATEGORIES OF JOBS RETAINED AND JOBS CREATED.
  (C) INDICATE THE DATES WHEN PILOT PAYMENTS ARE TO BE MADE AND  PROVIDE
AN  ESTIMATE  OF  THE  AMOUNTS FOR EACH AFFECTED TAX JURISDICTION OF ANY
PAYMENTS IN LIEU OF TAXES THAT ARE INCLUDED AS PART OF THE  TRANSACTION,
OR FORMULA OR FORMULAS BY WHICH THOSE AMOUNTS MAY BE CALCULATED. IN LIEU
OF  PROVIDING SUCH INFORMATION, A COPY OF AN EXECUTED PAYMENT IN LIEU OF
TAX AGREEMENT THAT CONTAINS THE SAME INFORMATION MAY BE ATTACHED TO  THE
UNIFORM AGENCY PROJECT AGREEMENT;
  (E)  PROVIDE FOR THE SUSPENSION OR DISCONTINUANCE OF FINANCIAL ASSIST-
ANCE, OR FOR THE MODIFICATION OF ANY PAYMENT IN LIEU OF TAX AGREEMENT TO
REQUIRE INCREASED PAYMENTS, IN ACCORDANCE WITH POLICIES DEVELOPED BY THE
AGENCY PURSUANT TO SECTION EIGHT HUNDRED SEVENTY-FOUR OF THIS TITLE;
  (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, AS PROVIDED FOR IN POLICIES DEVELOPED BY THE
AGENCY PURSUANT TO SECTION EIGHT HUNDRED  SEVENTY-FOUR  OF  THIS  TITLE,
UNLESS AGREED TO OTHERWISE BY ANY LOCAL TAXING JURISDICTION OR JURISDIC-
TIONS; AND
  (G)  PROVIDE  THAT THE OWNER, OCCUPANT OR OPERATOR RECEIVING FINANCIAL
ASSISTANCE SHALL CERTIFY, UNDER  PENALTY  OF  PERJURY,  THAT  IT  IS  IN
SUBSTANTIAL  COMPLIANCE  WITH  ALL  LOCAL, STATE AND FEDERAL TAX, WORKER
PROTECTION AND ENVIRONMENTAL LAWS, RULES AND REGULATIONS.
  S 2. Section 874 of the general municipal law  is  amended  by  adding
three new subdivisions 10, 11 and 12 to read as follows:
  (10)  EACH AGENCY SHALL DEVELOP POLICIES FOR THE SUSPENSION OR DISCON-
TINUANCE OF FINANCIAL ASSISTANCE, OR FOR THE MODIFICATION OF ANY PAYMENT
IN LIEU OF TAX AGREEMENT TO REQUIRE  INCREASED  PAYMENTS  UNDER  CIRCUM-
STANCES  AS  SPECIFIED IN THE POLICY, WHICH MAY INCLUDE BUT SHALL NOT BE
LIMITED TO EVENTS OF MATERIAL VIOLATION OF THE TERMS AND CONDITIONS OF A
PROJECT AGREEMENT.
  (11) EACH AGENCY SHALL DEVELOP POLICIES FOR THE RETURN  OF  ALL  OR  A
PART OF THE FINANCIAL ASSISTANCE PROVIDED FOR THE PROJECT, INCLUDING ALL
OR PART OF THE AMOUNT OF ANY TAX EXEMPTIONS, AS SPECIFIED IN THE POLICY,

S. 5867                             4

WHICH MAY INCLUDE BUT SHALL NOT BE LIMITED TO MATERIAL SHORTFALLS IN JOB
CREATION  AND  RETENTION PROJECTIONS OR MATERIAL VIOLATIONS OF THE TERMS
AND CONDITIONS OF PROJECT AGREEMENTS.  ALL SUCH RETURNED AMOUNTS OF  TAX
EXEMPTIONS SHALL BE REDISTRIBUTED TO THE APPROPRIATE AFFECTED TAX JURIS-
DICTION, UNLESS AGREED TO OTHERWISE BY ANY LOCAL TAXING JURISDICTION.
  (12)  EACH  AGENCY SHALL AT LEAST ANNUALLY ASSESS THE PROGRESS OF EACH
PROJECT FOR WHICH BONDS OR NOTES REMAIN  OUTSTANDING  OR  STRAIGHT-LEASE
TRANSACTIONS HAVE NOT TERMINATED, OR WHICH CONTINUE TO RECEIVE FINANCIAL
ASSISTANCE OR ARE OTHERWISE ACTIVE, TOWARD ACHIEVING THE INVESTMENT, JOB
RETENTION  OR  CREATION, OR OTHER OBJECTIVES OF THE PROJECT INDICATED IN
THE PROJECT APPLICATION. SUCH ASSESSMENTS SHALL  BE  PROVIDED  TO  BOARD
MEMBERS.
  S 3. This act shall take effect on the one hundred eightieth day after
it  shall  have  become  a law and shall apply to industrial development
agencies created pursuant to article 18-A of the general  municipal  law
and  shall  also  apply with full force and effect to the cities of Troy
and Auburn industrial development authorities  established  pursuant  to
the  public authorities law; provided, however, the provisions of subdi-
vision 12 of section 874 of  the  general  municipal  law  as  added  by
section  two  of  this  act  shall apply only to projects approved on or
after the effective date of this act.

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