The New York State Senate

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

                                 7697--A

                            I N  S E N A T E

                            February 9, 2018
                               ___________

Introduced  by  Sens.  DeFRANCISCO,  KRUEGER  --  read twice and ordered
  printed, and when printed to be committed to the Committee  on  Corpo-
  rations,  Authorities  and  Commissions  -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT  to  amend  the  public  authorities law, in relation to project
  applications and advisory opinions of the public  authorities  control
  board

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

  Section 1. Subdivisions 2, 3, 3-a, 4 and 5 of section 51 of the public
authorities law are renumbered subdivisions 6, 7, 7-a, 8 and 9 and  four
new subdivisions 2, 3, 4 and 5 are added to read as follows:
  2. ANY APPLICATION MADE CONCERNING A PROPOSED PROJECT INVOLVING A LOAN
SHALL INCLUDE, EXPRESSLY AND IN WRITING, THE TERMS, CONDITIONS AND DATES
OF THE REPAYMENT OF STATE APPROPRIATIONS AUTHORIZED BY LAW PURSUANT TO A
REPAYMENT  AGREEMENT  AND SHALL INCLUDE A COPY OF THE PROPOSED REPAYMENT
AGREEMENT. IN ANY SUCH APPLICATION THE TERMS  AND  CONDITIONS,  PROVIDED
EXPRESSLY AND IN WRITING, SHALL INCLUDE, BUT NOT BE LIMITED TO:
  A. ANY JOB RETENTION OR JOB CREATION REQUIREMENTS AND THE TERMS OF ANY
SUCH  REQUIREMENTS,  WHERE  SUCH  LOAN  WOULD  BE CONDITIONAL ON ANY JOB
RETENTION OR JOB CREATION REQUIREMENTS, A DESCRIPTION OF ANY CONTRACTUAL
CLAWBACK PROVISIONS OR OTHER REMEDIES IN THE EVENT SUCH REQUIREMENTS ARE
NOT MET;
  B. RATE OF INTEREST, FOR FIXED RATE AGREEMENTS;
  C. ALL TERMS NECESSARY TO DETERMINE AND CALCULATE  INTEREST  FOR  NON-
FIXED RATE LOAN AGREEMENTS;
  D. REPAYMENT DATE, OR DATES, AND ASSOCIATED AMOUNTS, FOR THE RETURN OF
LOAN PRINCIPAL;
  E.  ANY CONDITIONS OR RESTRICTIONS ASSOCIATED WITH THE LOAN, THE TERMS
OF SUCH CONDITIONS OR RESTRICTIONS, AND ANY CONTRACTUAL REMEDY  IF  SUCH
CONDITIONS OR RESTRICTIONS IN THE EVENT OF A BREACH OF SUCH TERMS;
  F. ANY SECURITY PROVISION AND A DESCRIPTION OF SUCH PROVISIONS; AND
  G. ANY GUARANTEE ASSOCIATED WITH SUCH LOAN.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD14677-02-8

S. 7697--A                          2

  3.  ANY  APPLICATION  MADE  CONCERNING  A PROPOSED PROJECT INVOLVING A
GRANT SHALL INCLUDE, EXPRESSLY AND IN WRITING, THE TERMS AND  CONDITIONS
OF  STATE APPROPRIATIONS AUTHORIZED BY LAW PURSUANT TO A GRANT DISBURSE-
MENT AGREEMENT AND PURSUANT TO ANY OTHER AGREEMENTS WHICH  WOULD  RELATE
TO  SUCH  GRANT.  IN  ANY  SUCH  APPLICATION  THE  TERMS AND CONDITIONS,
PROVIDED EXPRESSLY AND IN WRITING, SHALL INCLUDE, BUT NOT BE LIMITED TO:
  A. ANY JOB RETENTION OR JOB CREATION REQUIREMENTS AND THE TERMS OF ANY
SUCH REQUIREMENTS, WHERE SUCH LOAN  WOULD  BE  CONDITIONAL  ON  ANY  JOB
RETENTION OR JOB CREATION REQUIREMENTS, A DESCRIPTION OF ANY CONTRACTUAL
CLAWBACK PROVISIONS OR OTHER REMEDIES IN THE EVENT SUCH REQUIREMENTS ARE
NOT MET;
  B.  A FULL DESCRIPTION OF THE PROJECT AND HOW THE GRANT FUNDS WOULD BE
USED BY THE GRANTEE;
  C. WHERE SUCH PROJECT WOULD INVOLVE THE PURCHASE OF REAL  PROPERTY,  A
DESCRIPTION OF WHO WOULD OWN THE PROPERTY;
  D. TOTAL COST OF THE PROJECT;
  E.  A  LIST OF ALL SOURCES OF FUNDS FOR SUCH PROJECT AND A DESCRIPTION
OF EACH SOURCE OF FUNDS;
  F. A LIST OF ALL USES OF FUNDS FOR SUCH PROJECT AND A  DESCRIPTION  OF
EACH USE OF FUNDS;
  G.  AN  CONDITIONS  OR  RESTRICTIONS ON THE GRANTEE, THE TERMS OF SUCH
CONDITIONS OR RESTRICTIONS, AND ANY CONTRACTUAL REMEDIES IN THE EVENT OF
A BREACH OF SUCH TERMS;
  H. A DESCRIPTION OF THE OWNERSHIP;
  I. A DESCRIPTION OF ANY LEASE AGREEMENTS;
  J. ANY SECURITY PROVISIONS; AND
  K. ANY GUARANTEES ASSOCIATED WITH SUCH GRANT.
  4. NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY PROJECT  SUBMITTED  TO
THE  PUBLIC  AUTHORITIES  CONTROL  BOARD INVOLVING A LOAN OR GRANT WHERE
SUCH LOAN OR GRANT WOULD BE CONDITIONAL ON JOB RETENTION OR JOB CREATION
REQUIREMENTS SHALL INCLUDE CLAWBACK PROVISIONS IF SUCH JOB  REQUIREMENTS
ARE  NOT MET. THE BOARD MAY APPROVE SUCH PROJECTS ONLY UPON ITS DETERMI-
NATION THAT:
  A. SUCH SUBMITTED PROJECT INCLUDES, EXPRESSLY AND IN WRITING, CLAWBACK
PROVISIONS, IN THE EVENT JOB RETENTION OR JOB CREATION REQUIREMENTS  ARE
NOT MET; AND
  B.  PRIOR  TO  GRANT  DISBURSEMENT,  SUCH APPLICANT WILL SUBMIT TO THE
PUBLIC AUTHORITIES CONTROL BOARD A BINDING LETTER OF  AGREEMENT  BETWEEN
THE APPLICANT AND THE GRANTEE OR LOAN RECIPIENT, OR ANY BENEFICIARIES OF
SUCH  LOAN  OR  GRANT  WHO  WOULD  BE EXPECTED TO RETAIN OR CREATE JOBS,
EXPRESSLY AND IN WRITING ATTESTING THAT THEY AGREED TO THE JOB  CREATION
OR  JOB  RETENTION  CLAWBACK REQUIREMENTS AS A PRECONDITION TO RECEIVING
THE GRANT OR LOAN.
  5. A PUBLIC BENEFIT CORPORATION SUBJECT  TO  THE  PROVISIONS  OF  THIS
SECTION  MAY  SUBMIT TO THE PUBLIC AUTHORITIES CONTROL BOARD A POTENTIAL
PROJECT FOR COMMENT FROM THE  PUBLIC  AUTHORITIES  CONTROL  BOARD.  SUCH
PRELIMINARY PROJECT SHALL BE SUBMITTED TO ALL PUBLIC AUTHORITIES CONTROL
BOARD MEMBERS AND ALL MEMBERS AS WELL AS THE STATE COMPTROLLER, AND EACH
SHALL HAVE THIRTY DAYS TO COMMENT ON THE PRELIMINARY PROJECT, IF THEY SO
CHOOSE.  ANY  SUCH  COMMENTS  SHALL  BE  FILED BY THE PUBLIC AUTHORITIES
CONTROL BOARD AND TRANSMITTED TO  THE  RELEVANT  PUBLIC  BENEFIT  CORPO-
RATION. ANY SUCH COMMENT SHALL BE PURELY ADVISORY, SHALL HAVE NO BINDING
EFFECT  ON  ANY FUTURE DECISION OF THE PUBLIC AUTHORITIES CONTROL BOARD,
AND SHALL NOT PROVIDE APPROVAL FOR ANY PROJECT.

S. 7697--A                          3

  § 2. Subdivisions 8 and 9 of section 51 of the public authorities law,
as added by chapter 838 of the laws of 1983 and as renumbered by section
one of this act, are amended to read as follows:
  8.  Notwithstanding any other provisions of this section, the require-
ments of subdivisions one, [two] SIX and [three] SEVEN of  this  section
shall  not  apply with regard to any project of the New York state envi-
ronmental facilities corporation, the New  York  state  housing  finance
agency, the New York state medical care facilities finance agency or the
dormitory  authority  in  progress  on  the first day of April, nineteen
hundred seventy-six, with regard to any project of the  New  York  state
project  finance  agency  or the New York state urban development corpo-
ration in progress on the first day of April, nineteen hundred  seventy-
eight,  with  regard  to any project of the job development authority or
the battery park city authority in progress on the first  day  of  July,
nineteen  hundred  eighty,  and  with  regard  to a project of any other
public benefit corporation subject to the provisions of this section  in
progress  on  the  first  day of July, nineteen hundred eighty-three, as
determined by the New York state public authorities control board  whose
affirmative  determination  shall be conclusive as to all matters of law
and fact for the purpose of the limitations of this section.
  9. Nothing contained in subdivisions one, [two] SIX and [three]  SEVEN
of  this section shall limit the right or obligation of any public bene-
fit corporation subject to the provisions of this section to comply with
the provisions of any existing contract, including any existing contract
with or for the benefit of the holders of any obligations of any  public
benefit corporation.
  § 3. This act shall take effect immediately.