S T A T E O F N E W Y O R K
________________________________________________________________________
6793
2019-2020 Regular Sessions
I N A S S E M B L Y
March 20, 2019
___________
Introduced by M. of A. ORTIZ -- read once and referred to the Committee
on Economic Development
AN ACT to amend the economic development law, in relation to enacting
the "corporate and financial accountability act"
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 "corporate and financial accountability act".
§ 2. The economic development law is amended by adding a new article
4-D to read as follows:
ARTICLE 4-D
FINANCIAL INCENTIVES ACCOUNTABILITY
SECTION 147. LEGISLATIVE DECLARATION.
148. DEFINITIONS.
149. FINANCIAL INCENTIVES ACCOUNTABILITY.
§ 147. LEGISLATIVE DECLARATION. THE LEGISLATURE SEEKS TO ENSURE THAT
RECIPIENTS OF PUBLICLY FUNDED ECONOMIC DEVELOPMENT ASSISTANCE ARE HELD
ACCOUNTABLE FOR THE ATTAINMENT OF AGREED UPON PERFORMANCE OBJECTIVES,
THROUGH A REQUIREMENT FOR THE REPAYMENT OF ASSISTANCE IF SUCH OBJECTIVES
ARE NOT MET.
§ 148. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS AS INDICATED:
1. "AGENCY" SHALL MEAN ANY AGENCY, DEPARTMENT, BOARD, BUREAU, COMMIS-
SION A MAJORITY OF WHOSE MEMBERS ARE APPOINTED BY THE GOVERNOR, DIVI-
SION, OFFICE, COUNCIL, COMMITTEE, OR OFFICER OF THE STATE, OR THE STATE
UNIVERSITY OF NEW YORK OR THE CITY UNIVERSITY OF NEW YORK, OR ANY PUBLIC
BENEFIT CORPORATION OR PUBLIC AUTHORITY, A MAJORITY OF WHOSE MEMBERS ARE
APPOINTED BY THE GOVERNOR, THE STATE, ANY OF ITS POLITICAL SUBDIVISIONS
OR INSTRUMENTALITY OF THE STATE OR ITS POLITICAL SUBDIVISIONS, OR ANY
PUBLIC BENEFIT CORPORATION AS DEFINED IN SUBDIVISION FOUR OF SECTION
SIXTY-SIX OF THE GENERAL CONSTRUCTION LAW, OR ANY MUNICIPAL CORPORATION
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10055-01-9
A. 6793 2
AS DEFINED IN SUBDIVISION THREE OF SECTION THREE-A OF THE GENERAL MUNIC-
IPAL LAW.
2. "ECONOMIC DEVELOPMENT CONTRACT" SHALL MEAN ANY CONTRACT, AGREEMENT
OR UNDERSTANDING BETWEEN AN AGENCY AND A RECIPIENT, PROVIDING FOR
AWARDS, GRANTS, LOANS, TAX ABATEMENTS OR OTHER BUSINESS INCENTIVES.
3. "RECIPIENT" SHALL MEAN A PERSON, FIRM, PARTNERSHIP, COMPANY, ASSO-
CIATION OR CORPORATION WHICH ENTERS INTO AN ECONOMIC DEVELOPMENT
CONTRACT WITH AN AGENCY.
4. "APPLICANT" SHALL MEAN ANY ENTITY FILING ANY APPLICATION WITH AN
AGENCY TO BECOME A RECIPIENT.
5. "AWARD" SHALL MEAN ANY AWARD, GRANT OF FINANCIAL ASSISTANCE, LOAN,
TAX ABATEMENT OR OTHER BUSINESS INCENTIVE.
§ 149. FINANCIAL INCENTIVES ACCOUNTABILITY. 1. EVERY AGENCY THAT
ENTERS INTO ECONOMIC DEVELOPMENT CONTRACTS SHALL ESTABLISH AND IMPLEMENT
A FINANCIAL ACCOUNTABILITY POLICY WHICH SHALL AT MINIMUM REQUIRE:
A. APPLICANTS TO FILE INFORMATION WITH AN AGENCY DURING THE APPLICA-
TION PROCESS FOR QUALIFICATION AS A RECIPIENT OF AN ECONOMIC DEVELOPMENT
CONTRACT WHICH SHALL INCLUDE SUCH APPLICANT'S RECORD OF PERFORMANCE IN
CONTRIBUTING TO JOB RETENTION AND CREATION, ECONOMIC STABILITY AND
COMMUNITY REVITALIZATION, AND ANY CRIMINAL CONVICTIONS, VIOLATIONS OR
PENDING INVESTIGATIONS REGARDING OCCUPATIONAL SAFETY AND HEALTH STAND-
ARDS, EQUAL EMPLOYMENT OPPORTUNITY CREDITS AND ENVIRONMENTAL STANDARDS;
B. THE REPAYMENT, WITH INTEREST, OF AWARDS OR A PORTION THEREOF, UPON
A FINDING THAT THE RECIPIENT HAS NOT FULLY EXECUTED AND COMPLETED THE
STATED PURPOSE OR OBJECTIVE OF THE AWARD. UPON A WRITTEN FINDING THAT
THE REPAYMENT OF THE AWARD IS UNABLE TO BE FULFILLED DUE TO CIRCUM-
STANCES BEYOND THE CONTROL OF THE RECIPIENT, THE AWARD MAY BE EXCUSED,
IN WHOLE OR IN PART, BY THE AGENCY; AND
C. IN THE EVENT THAT A RECIPIENT FAILS TO REPAY AN AWARD AND IS FOUND
TO HAVE BEEN SUBJECT TO A PREVIOUS REPAYMENT PURSUANT TO THIS ARTICLE,
SUCH APPLICANT SHALL BE INELIGIBLE TO RECEIVE AN AWARD FROM THE AGENCY
FOR NOT LESS THAN FIVE YEARS FOLLOWING THE DATE OF LAST REPAYMENT.
2. EACH AGENCY THAT ENTERS INTO ECONOMIC DEVELOPMENT CONTRACTS SHALL
FILE WITH THE DEPARTMENT A CERTIFIED COPY OF THEIR FINANCIAL ACCOUNT-
ABILITY POLICY PROMULGATED PURSUANT TO THIS ARTICLE.
3. IN THE EVENT THAT A RECIPIENT FAILS TO REPAY AN AWARD THE AGENCY
SHALL INFORM THE DEPARTMENT WHICH SHALL MAINTAIN A LISTING THEREOF. THE
DEPARTMENT SHALL THEN MAKE AN ANNUAL REPORT TO THE SPEAKER OF THE ASSEM-
BLY AND THE TEMPORARY PRESIDENT OF THE SENATE ON THE FIRST DAY OF MARCH
WITH RESPECT TO ALL RECIPIENTS, TO DATE, THAT HAVE FAILED TO REPAY AN
AWARD.
4. EVERY AGENCY WHICH ENTERS INTO ECONOMIC DEVELOPMENT CONTRACTS
SHALL, IN THE COURSE OF IMPLEMENTING THE POLICY PROMULGATED PURSUANT TO
THIS ARTICLE, REPORT ANY INFORMATION REGARDING A RECIPIENT'S RECORD OF
PERFORMANCE IN CONTRIBUTING TO JOB RETENTION AND CREATION, ECONOMIC
STABILITY AND COMMUNITY REVITALIZATION, AND ANY CRIMINAL CONVICTIONS,
VIOLATIONS OR PENDING INVESTIGATIONS REGARDING SAFETY AND HEALTH STAND-
ARDS, EQUAL OPPORTUNITY EMPLOYMENT CREDITS AND ENVIRONMENTAL STANDARDS
TO THE APPROPRIATE DEPARTMENT FOR ASSESSMENT AND REVIEW.
§ 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date are authorized and directed to
be made and completed on or before such effective date.