Assembly Bill A5890

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5890
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 20, 2019
                                ___________
 
 Introduced  by  M. of A. BARCLAY, GIGLIO, NORRIS, TAGUE, BRABENEC, MORI-
   NELLO, MANKTELOW, RA,  HAWLEY  --  Multi-Sponsored  by  --  M.  of  A.
   M. L. MILLER,  SALKA  --  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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08933-01-9
              

 A. 5890                             2
 
 ing, strengthening accountability mechanisms,  and  encouraging  quality
 job creation for all New Yorkers.
   §  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:
   (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, 2020.
   § 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, 2020.
   § 4. This act shall take effect immediately.