S T A T E O F N E W Y O R K
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2520
2019-2020 Regular Sessions
I N A S S E M B L Y
January 23, 2019
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Introduced by M. of A. GLICK, GOTTFRIED -- read once and referred to the
Committee on Economic Development
AN ACT to amend the economic development law and the New York state
urban development corporation act, in relation to limiting the use of
economic development funds to certain corporations
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The economic development law is amended by adding a new
section 107 to read as follows:
§ 107. RESTRICTIONS ON ECONOMIC DEVELOPMENT FUNDING TO CERTAIN CORPO-
RATIONS. NO ECONOMIC DEVELOPMENT LOANS, GRANTS OR OTHER FUNDS MAY BE
PROVIDED UNDER THE PROVISIONS OF THIS CHAPTER TO ANY PERSON, FIRM, PART-
NERSHIP OR CORPORATION WHERE THE CHIEF EXECUTIVE OFFICER OF SUCH BUSI-
NESS ENTITY RECEIVES A SALARY, INCLUDING ALL REMUNERATION, BONUSES,
STOCK AND BENEFITS, WHICH IS MORE THAN TWENTY-FIVE TIMES THE AMOUNT OF
THE SALARY OF THE LOWEST PAID EMPLOYEE OF SUCH BUSINESS ENTITY. THE
SALARY OF ANY PART TIME EMPLOYEE SHALL BE DETERMINED ON A PRORATED
BASIS, AND CALCULATED AS IF SUCH EMPLOYEE WAS EMPLOYED FULL TIME. THE
COMMISSIONER SHALL REQUEST AND EXAMINE THE PAYROLL RECORDS AND ANY OTHER
RECORDS OF ANY BUSINESS ENTITY WHICH RECEIVES OR APPLIES FOR ANY LOAN,
GRANT OR ECONOMIC DEVELOPMENT FUNDING UNDER THIS CHAPTER WHICH ARE
NECESSARY TO DETERMINE THE SALARY AMOUNTS PURSUANT TO THIS SECTION.
§ 2. Section 1 of chapter 174 of the laws of 1968, constituting the
New York state urban development corporation act, is amended by adding a
new section 5-a to read as follows:
§ 5-A. RESTRICTIONS ON ECONOMIC DEVELOPMENT FUNDING TO CERTAIN CORPO-
RATIONS. NO ECONOMIC DEVELOPMENT LOANS, GRANTS OR OTHER FUNDS MAY BE
PROVIDED UNDER THE PROVISIONS OF THIS ACT TO ANY PERSON, FIRM, PARTNER-
SHIP OR CORPORATION WHERE THE CHIEF EXECUTIVE OFFICER OF SUCH BUSINESS
ENTITY RECEIVES A SALARY, INCLUDING ALL REMUNERATION, BONUSES, STOCK AND
BENEFITS, WHICH IS MORE THAN TWENTY-FIVE TIMES THE AMOUNT OF THE SALARY
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05007-01-9
A. 2520 2
OF THE LOWEST PAID EMPLOYEE OF SUCH BUSINESS ENTITY. THE SALARY OF ANY
PART TIME EMPLOYEE SHALL BE DETERMINED ON A PRORATED BASIS, AND CALCU-
LATED AS IF SUCH EMPLOYEE WAS EMPLOYED FULL TIME. THE BOARD OF DIRECTORS
OF THE CORPORATION SHALL REQUEST AND EXAMINE THE PAYROLL RECORDS AND ANY
OTHER RECORDS OF ANY BUSINESS ENTITY WHICH RECEIVES OR APPLIES FOR ANY
LOAN, GRANT OR ECONOMIC DEVELOPMENT FUNDING UNDER THIS ACT WHICH ARE
NECESSARY TO DETERMINE THE SALARY AMOUNTS PURSUANT TO THIS SECTION.
§ 3. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.