NY State Senate Bill 2017-S3271

Senate Bill S3271

2017-2018 Legislative Session

Requires the preparation of a comprehensive economic development plan for the use of eminent domain when the primary purpose is economic development

download bill text pdf

Archive: Last Bill Status - In Senate Committee Commerce, Economic Development And Small Business 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to commerce, economic development and small business
Jan 20, 2017	referred to commerce, economic development and small business

2017-S3271 (ACTIVE) - Details

See Assembly Version of this Bill:: A2738
Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Public Authorities Law
Laws Affected:: Amd §§103, 204 & 207, add §204-a, EDP L; amd §1411, N-PC L; add §858-c, Gen Muni L; add §1831-b, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A1568
2011-2012: A3366
2013-2014: A3973
2015-2016: S5910, A2453
2019-2020: S1553, A1328
2021-2022: S2931
2023-2024: S7337

2017-S3271 (ACTIVE) - Summary

Requires the preparation of a comprehensive economic development plan for the use of eminent domain when the primary purpose is economic development and certain residential premises are to be acquired; requires municipal approval of the exercise of eminent domain power in such cases; enacts the "eminent domain reform act".

2017-S3271 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3271

 TITLE OF BILL :

An act to amend the public authorities law, the not-for-profit
corporation law, the general municipal law and the eminent domain
procedure law, in relation to eminent domain reform

 PURPOSE :

This bill would prohibit public authorities or public benefit
corporations from depositing their moneys in a banking institution
with a federal or state Community Reinvestment Act rating of less than
satisfactory.

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends the public authorities law by adding a
new section 2891 which specifies that, notwithstanding any other
provision of this chapter, no public authority or public benefit
corporation chartered by the State of New York shall deposit its
moneys in a banking institution to which the Community Reinvestment
Act of 1977, United States P.L. 95-128, applies unless such
institution has received a record of performance no lower than
satisfactory.

Section 2 of the bill sets forth the effective date.

 JUSTIFICATION :

In 1977, Congress passed the Community Reinvestment Act (CRA), a law
that sought to eliminate discriminatory behavior by banks. The CRA
requires banks to meet the financial needs of their communities by
investing in low- to moderate-income neighborhoods.  One of the CRA's
most powerful tools to spur banks to return capital to the
neighborhoods from which they extracted it is the CRA's focus upon
neighborhood lending target compliance, as well as enforcement against
banks that fail to meet federal lending guidelines. The overall goal
is to encourage banks to lend in distressed communities, thereby
promoting local economic development, small business and consumer
lending, and homeownership.

A report by the Association for Neighborhood and Housing Development
(ANHD) concerning New York City's 17 largest banks reveals that while
deposits grew by more than $452 billion in 2007 and 2008, these
institutions reduced community lending 20.2 percent or $560 million
dollars. Furthermore, the report concludes that these banks also
reduced their multi-family loans in low-income areas by nearly 25
percent, or $1.3 billion dollars. While this report may be no more
than a window into a problem whose parameters are different outside of
New York City, the dramatic declines in lending portrayed during a
period of consumer credit crisis are distressing and endanger the
prosperity and recover of New York's communities.

In New York, billions of dollars are held on deposit by public
authorities and public benefit corporations, and the deposit or
withholding of such funds can act as a powerful incentive for CRA
compliance. This bill would further enhance CRA compliance by
directing the public authorities continued or created in New York not
to deposit funds in those banks that have not received a CRA rating of
satisfactory or better.

 LEGISLATIVE HISTORY :

2015-16: S.5910/A.2453 Referred to Commerce, Economic Development and
Small Business
2014: A02058 (Kavanagh) - Corporations, Authorities and Commissions
2013: A02058 (Kavanagh) - Ways and Means
2012: A05947 (Kavanagh) - Ways and Means
2011: A05947 (Kavanagh) - Corporations, Authorities and Commissions
2010: A11713 (Kavanagh) - Corporations, Authorities and Commissions

 FISCAL IMPACT ON THE STATE :

None.

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

2017-S3271 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3271
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 AN  ACT  to  amend the public authorities law, the not-for-profit corpo-
   ration law, the general municipal law and the eminent domain procedure
   law, in relation to eminent domain reform
 
   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 "eminent domain reform act".
   § 2. The public authorities law is amended by  adding  a  new  section
 1831-b to read as follows:
   §  1831-B. EXERCISE OF POWER OF EMINENT DOMAIN; LIMITATIONS. THE LOCAL
 LEGISLATIVE BODY OF EACH CITY, TOWN, OR VILLAGE IN WHICH  THE  AUTHORITY
 SEEKS  TO  EXERCISE THE POWER OF EMINENT DOMAIN SHALL HAVE THE AUTHORITY
 TO APPROVE OR DISAPPROVE ANY EXERCISE OF SUCH POWER  BY  THE  AUTHORITY.
 EVERY  SUCH LOCAL LEGISLATIVE BODY SHALL APPROVE OR DISAPPROVE ANY EXER-
 CISE OF SUCH POWER BY MAJORITY VOTE. WHERE APPLICABLE IN  THE  ENACTMENT
 OF  LOCAL  LAWS,  THE  CHIEF  EXECUTIVE  OFFICER OF SUCH LOCALITY IF THE
 OFFICE OF SUCH CHIEF EXECUTIVE OFFICER  IS  ELECTIVE  SHALL  APPROVE  OR
 DISAPPROVE SUCH LOCAL LEGISLATIVE BODY'S DECISION, SUBJECT TO ANY APPLI-
 CABLE RIGHT TO OVERRIDE.
   §  3.  Paragraph (i) of section 1411 of the not-for-profit corporation
 law is relettered paragraph (j) and a new paragraph (i) is added to read
 as follows:
   (I) MUNICIPAL INPUT.  THE LOCAL LEGISLATIVE BODY OF EACH  CITY,  TOWN,
 OR  VILLAGE  IN  WHICH  ANY  PART OF THE REAL PROPERTY TO BE ACQUIRED IS
 LOCATED SHALL HAVE THE AUTHORITY TO APPROVE  OR  DISAPPROVE  ANY  CORPO-
 RATION'S  USE  OF EMINENT DOMAIN. EACH SUCH LOCAL LEGISLATIVE BODY SHALL
 APPROVE OR DISAPPROVE ANY PROPOSED CORPORATE USE OF THE POWER OF EMINENT
 DOMAIN BY MAJORITY VOTE. WHERE APPLICABLE  IN  THE  ENACTMENT  OF  LOCAL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD07511-01-7

 S. 3271                             2
 
 LAWS, THE CHIEF EXECUTIVE OFFICER OF SUCH LOCALITY IF THE OFFICE OF SUCH
 CHIEF  EXECUTIVE  OFFICER  IS  ELECTIVE SHALL APPROVE OR DISAPPROVE SUCH
 GOVERNING BODY'S DECISION, SUBJECT TO ANY APPLICABLE RIGHT TO OVERRIDE.
   §  4.  The  general  municipal  law is amended by adding a new section
 858-c to read as follows:
   § 858-C. MUNICIPAL INPUT. THE GOVERNING BODY OF EACH  CITY,  TOWN,  OR
 VILLAGE FOR WHOSE BENEFIT, IN WHOLE OR IN PART, AN AGENCY IS ESTABLISHED
 SHALL  HAVE  THE  AUTHORITY  TO  APPROVE OR DISAPPROVE ANY AGENCY USE OF
 EMINENT DOMAIN. EACH SUCH GOVERNING BODY SHALL APPROVE OR DISAPPROVE THE
 USE OF EMINENT DOMAIN BY MAJORITY VOTE. WHERE APPLICABLE IN  THE  ENACT-
 MENT  OF LOCAL LAWS, THE CHIEF EXECUTIVE OFFICER OF SUCH LOCALITY IF THE
 OFFICE OF SUCH CHIEF EXECUTIVE OFFICER  IS  ELECTIVE  SHALL  APPROVE  OR
 DISAPPROVE  SUCH  GOVERNING  BODY'S  DECISION, SUBJECT TO ANY APPLICABLE
 RIGHT TO OVERRIDE.
   § 5. Section 103 of the eminent domain procedure  law  is  amended  by
 adding two new subdivisions (H) and (I) to read as follows:
   (H)  "ECONOMIC DEVELOPMENT PROJECT" MEANS ANY PROJECT FOR WHICH ACQUI-
 SITION OF REAL PROPERTY MAY BE REQUIRED FOR A PUBLIC  USE,  BENEFIT,  OR
 PURPOSE  WHERE  SUCH  PUBLIC  USE,  BENEFIT, OR PURPOSE IS PRIMARILY FOR
 ECONOMIC DEVELOPMENT AND WHERE THE CONDEMNEE'S REAL PROPERTY IS  A  HOME
 OR DWELLING.
   (I) FOR THE PURPOSES OF ARTICLE TWO OF THIS CHAPTER:
   (1) "HOME" MEANS OWNER-OCCUPIED RESIDENTIAL PREMISES CONSISTING OF NOT
 MORE THAN SIX DWELLING UNITS.
   (2)  "DWELLING" MEANS RESIDENTIAL PREMISES CONSISTING OF NOT MORE THAN
 THIRTY DWELLING UNITS, NONE OF WHICH IS OCCUPIED BY  AN  OWNER  OF  SUCH
 PREMISES.
   (3)  IN  THE CASE OF COOPERATIVE APARTMENT CORPORATIONS, TITLE TO THAT
 PORTION OF REAL PROPERTY OWNED BY A COOPERATIVE APARTMENT CORPORATION IN
 WHICH A TENANT-STOCKHOLDER OF SUCH CORPORATION  RESIDES,  AND  WHICH  IS
 REPRESENTED  BY  HIS OR HER SHARE OR SHARES OF STOCK IN SUCH CORPORATION
 AS DETERMINED BY ITS OR THEIR PROPORTIONAL  RELATIONSHIP  TO  THE  TOTAL
 OUTSTANDING STOCK OF THE CORPORATION, INCLUDING THAT OWNED BY THE CORPO-
 RATION, SHALL BE DEEMED TO BE VESTED IN SUCH TENANT-STOCKHOLDER NOTWITH-
 STANDING THE NUMBER OF DWELLING UNITS IN SUCH RESIDENTIAL PREMISES, THUS
 QUALIFYING A COOPERATIVE APARTMENT AS A HOME.
   §  6.  Subdivision  (B) of section 204 of the eminent domain procedure
 law is amended to read as follows:
   (B) The condemnor, in its determination and findings,  shall  specify,
 but shall not be limited to the following:
   (1)  the  public  use, benefit or purpose to be served by the proposed
 public project;
   (2) the approximate location for the proposed public project  and  the
 reasons for the selection of that location;
   (3)  the general effect of the proposed project on the environment and
 residents of the locality;
   (4) A DECLARATION TO SUCH EFFECT IF  THE  PRIMARY  PUBLIC  PURPOSE  IS
 DETERMINED  TO BE FOR ECONOMIC DEVELOPMENT WHERE ONE OR MORE CONDEMNEES'
 HOMES OR DWELLINGS ARE TO BE AFFECTED; AND
   (5) such other factors as it considers relevant.
   § 7. The eminent domain procedure law  is  amended  by  adding  a  new
 section 204-a to read as follows:
   §  204-A.  ECONOMIC  DEVELOPMENT  CONDEMNATION  FINDINGS AND HOMEOWNER
 PROTECTION. (A) IF THE CONDEMNOR DETERMINES PURSUANT TO  PARAGRAPH  FOUR
 OF  SUBDIVISION (B) OF SECTION TWO HUNDRED FOUR OF THIS ARTICLE THAT THE
 PRIMARY PUBLIC PURPOSE OR  BENEFIT  IS  FOR  ECONOMIC  DEVELOPMENT,  THE

 S. 3271                             3
 
 CONDEMNOR,  IN  COOPERATION WITH THE GOVERNMENT OF THE LOCALITY IN WHICH
 THE REAL PROPERTY TO BE ACQUIRED IS LOCATED SHALL PREPARE  A  COMPREHEN-
 SIVE ECONOMIC DEVELOPMENT PLAN FOR THE AFFECTED AREA.  THE COMPREHENSIVE
 ECONOMIC  DEVELOPMENT  PLAN  SHALL  INCLUDE,  BUT NOT BE LIMITED TO, THE
 ACTUAL OR EXPECTED BENEFITS  OF  THE  PROJECT,  INCLUDING  THE  EXPECTED
 INCREASED  TAX  REVENUE OR EXPECTED CREATION OF JOBS, THE TYPES OF BUSI-
 NESSES OR INDUSTRY THAT WILL USE THE CONDEMNED  PROPERTY,  AND  ALTERNA-
 TIVES  TO THE PLAN. WHEN A DRAFT COMPREHENSIVE ECONOMIC DEVELOPMENT PLAN
 IS CREATED, THE CONDEMNOR, IN COOPERATION WITH  THE  GOVERNMENT  OF  THE
 LOCALITY IN WHICH THE REAL PROPERTY TO BE ACQUIRED IS LOCATED SHALL HOLD
 AT  LEAST  ONE  PUBLIC  HEARING TO COMPILE AND ANALYZE PUBLIC INPUT. THE
 PUBLIC HEARING SHALL BE HELD IN ACCORDANCE WITH THE PROVISIONS  OF  THIS
 ARTICLE  AT  A  LOCATION REASONABLY PROXIMATE TO THE REAL PROPERTY WHICH
 MAY BE ACQUIRED  FOR  SUCH  PROJECT.  THEREAFTER,  THE  CONDEMNOR  SHALL
 COMPLETE A FINAL COMPREHENSIVE ECONOMIC DEVELOPMENT PLAN TO BE SUBMITTED
 TO  THE LOCAL LEGISLATIVE BODY, SUBJECT TO ANY APPLICABLE RIGHT TO OVER-
 RIDE FOR ITS APPROVAL.   TO MOVE FORWARD WITH  THE  PROJECT,  THE  LOCAL
 LEGISLATIVE  BODY  MUST APPROVE THE PLAN BY A MAJORITY VOTE, AND IT MUST
 ALSO BE APPROVED BY THE CHIEF EXECUTIVE OFFICER OF SUCH LOCALITY IF  THE
 OFFICE OF SUCH CHIEF EXECUTIVE OFFICER IS ELECTIVE.
   (B)  THE  CONDEMNOR  SHALL  ALSO  CREATE A HOMEOWNER IMPACT ASSESSMENT
 STATEMENT. THE CONDEMNOR, IN THE HOMEOWNER IMPACT ASSESSMENT  STATEMENT,
 SHALL  ASSESS  THE  ACTUAL  HARM TO AFFECTED CONDEMNEES' THAT WOULD LOSE
 THEIR HOMES OR DWELLINGS AND  COMPARE  SUCH  HARM  WITH  THE  REASONABLY
 EXPECTED  COMMUNITY  BENEFITS,  INCLUDING  BUT  NOT  LIMITED  TO HOW THE
 CONDEMNOR JUSTIFIES THE TAKING OF THE CONDEMNEES'  HOMES  OR  DWELLINGS.
 THE  HOMEOWNER IMPACT ASSESSMENT STATEMENT SHALL BE COMPLETED SIMULTANE-
 OUSLY WITH THE COMPREHENSIVE ECONOMIC DEVELOPMENT PLAN UNDER SUBDIVISION
 (A) OF THIS SECTION. THE HOMEOWNER IMPACT ASSESSMENT STATEMENT SHALL  BE
 MADE WIDELY AVAILABLE.
   (C)  IN  CASES WHERE A CONDEMNEE'S HOME OR DWELLING IS ACQUIRED FOR AN
 ECONOMIC DEVELOPMENT PROJECT, THE CONDEMNOR SHALL, IN  ADDITION  TO  ANY
 OTHER  COMPENSATION  REQUIREMENTS  UNDER  THIS  ARTICLE,  COMPENSATE THE
 CONDEMNEE A MINIMUM OF ONE HUNDRED FIFTY  PERCENT  OF  THE  FAIR  MARKET
 VALUE  OF THE REAL PROPERTY. RESIDENTS WHO ARE DISPLACED BY THE ECONOMIC
 DEVELOPMENT PROJECT SHALL ALSO BE COMPENSATED AT LEAST ONE HUNDRED FIFTY
 PERCENT OF THE ANNUAL RENT OF SUCH DWELLING.
   § 8. Subdivision (A) of section 207 of the  eminent  domain  procedure
 law,  as  amended by chapter 356 of the laws of 1982, is amended to read
 as follows:
   (A) Any person or persons  jointly  or  severally,  aggrieved  by  the
 condemnor's  determination  and  findings  made  pursuant to section two
 hundred four of this article, may seek judicial review  thereof  by  the
 appellate  division  of  the  supreme  court, in the judicial department
 embracing the county wherein the proposed facility  is  located  by  the
 filing of a petition in such court within [thirty] NINETY days after the
 condemnor's completion of its publication of its determination and find-
 ings pursuant to section two hundred four [herein] OF THIS ARTICLE. Such
 petition  shall  be  accompanied  by proof of service of a demand on the
 condemnor to file with said court a copy of a written transcript of  the
 record  of the proceeding before it, and a copy of its determination and
 findings. Upon receipt of such petition and demand, the condemnor  shall
 forthwith  deliver  to  the court a copy of the record and a copy of its
 determination and findings. The proceeding shall be heard on the  record
 without requirement of reproduction. If such proposed public improvement
 is  located in more than one judicial department, such proceeding may be

 S. 3271                             4
 
 brought in any one, but only one, of  such  departments,  and  all  such
 proceedings  with relation to any single public project shall be consol-
 idated with that first filed.  IF THE CONDEMNOR SUBSTANTIALLY ALTERS THE
 SCOPE OF THE PROJECT OR THE DETERMINATION AND FINDINGS, THEN THE CONDEM-
 NEE  SHALL  HAVE AN ADDITIONAL NINETY DAYS FROM THE CONDEMNOR'S PUBLICA-
 TION OF SUCH ALTERATION, WHICH PUBLICATION IS HEREBY REQUIRED,  TO  SEEK
 JUDICIAL REVIEW UNDER THIS SECTION.
   § 9. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

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