Senate Bill S4668A

2019-2020 Legislative Session

Relates to preventing the use of funds, financial incentives, subsidies or tax exemptions for projects in development

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Archive: Last Bill Status - In Senate Committee Local Government 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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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 24, 2020	print number 4668a
Jan 24, 2020	amend and recommit to local government
Jan 08, 2020	referred to local government
Mar 20, 2019	referred to local government

Bill Amendments

Original

A (Active)

co-Sponsors

2019-S4668 - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §§854, 862 & 874, Gen Muni L

2019-S4668 - Summary

Prevents the use of funds, financial incentives, subsidies or tax exemptions for projects already in development.

2019-S4668 - Sponsor Memo

                                
 
BILL NUMBER: S4668

SPONSOR: SKOUFIS
 
TITLE OF BILL:  An act to amend the general municipal law, in relation
to preventing the use of funds, financial incentives, subsidies or tax
exemptions for projects already in development

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would prohibit industrial development agencies (IDAs) from
giving financial assistance to projects that are already in development
at the time of an application for financial assistance.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new subdivision 21 to section 854 of the general
municipal law defining the term "in development."

Section 2: Adds a new subdivision to section 862 of the general munici-
pal law stating that IDAs may not give financial incentives or subsidies
to a project already in development unless environmental contamination

requiring a significant increase in project costs has been discovered
during the development of a project.

Section 3: Adds a new subdivision to section 874 of the general munici-
pal law stating that IDAs may not grant tax exemptions to a project
already in development unless environmental contamination requiring a
significant increase in project costs has been discovered during the
development of a project.

Section 4: Effective date.

 
JUSTIFICATION:

The purpose of IDA assistance is to provide incentives to companies to
persuade them to locate or expand operations in a community.  Therefore,
if a company is already planning to move to or expand its operations in
a community, there is no justification for giving that company taxpay-
er-funded incentives to persuade them to do something they would have
done even without the incentives. This bill prohibits IDAs from giving
financial incentives or subsidies or granting tax exemptions to projects
that have already started development. If a company has already begun
construction on a project, they are clearly committed to the location,
and have no need for taxpayer-funded incentives.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S4668 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4668
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2019
                                ___________
 
 Introduced  by  Sens.  SKOUFIS, MAYER -- read twice and ordered printed,
   and when printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal law, in relation to preventing the
   use of funds, financial incentives, subsidies or  tax  exemptions  for
   projects already in development

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 854 of the general  municipal  law  is  amended  by
 adding a new subdivision 21 to read as follows:
   (21)  "IN  DEVELOPMENT"  -  SHALL  MEAN  A  PROJECT  FOR  WHICH ACTIVE
 CONSTRUCTION, INCLUDING BUT NOT LIMITED TO  SITE  CLEARING,  EXCAVATION,
 ERECTION OF BUILDING FOUNDATIONS OR STRUCTURE, HAS ALREADY COMMENCED.
   §  2.  Section 862 of the general municipal law is amended by adding a
 new subdivision 3 to read as follows:
   (3) EXCEPT WHERE ENVIRONMENTAL CONTAMINATION REQUIRING  A  SIGNIFICANT
 INCREASE  IN  PROJECT  COSTS IS DISCOVERED DURING THE DEVELOPMENT OF THE
 PROJECT, NO FUNDS, FINANCIAL INCENTIVES OR SUBSIDIES OF THE AGENCY SHALL
 BE USED IN RESPECT OF ANY PROJECT WHICH IS ALREADY IN DEVELOPMENT AT THE
 TIME SUCH PROJECT APPLIES FOR SUCH FUNDS, FINANCIAL  ASSISTANCE,  INCEN-
 TIVES OR SUBSIDIES.
   §  3.  Section 874 of the general municipal law is amended by adding a
 new subdivision 13 to read as follows:
   (13) EXCEPT WHERE ENVIRONMENTAL CONTAMINATION REQUIRING A  SIGNIFICANT
 INCREASE  IN  PROJECT  COSTS IS DISCOVERED DURING THE DEVELOPMENT OF THE
 PROJECT, NO TAX EXEMPTIONS SHALL  BE  GRANTED  TO  ANY  PROJECT  IF  THE
 PROJECT  IS  ALREADY IN DEVELOPMENT AT THE TIME SUCH PROJECT APPLIES FOR
 THE ISSUANCE OF THE TAX EXEMPTION.
   § 4. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10239-05-9

co-Sponsors

2019-S4668A (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §§854, 862 & 874, Gen Muni L

2019-S4668A (ACTIVE) - Summary

Prevents the use of funds, financial incentives, subsidies or tax exemptions for projects already in development.

2019-S4668A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4668A

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to preventing the
use of funds, financial incentives, subsidies or tax exemptions for
projects already in development

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would prohibit industrial development agencies (IDAs) from
giving financial assistance to projects that are already in development
at the time of an application for financial assistance.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new subdivision 21 to section 854 of the general
municipal law defining the term "in development."

Section 2: Adds a new subdivision to section 862 of the general munici-

pal law stating that IDAs may not give financial incentives or subsidies
to a project already in development unless environmental contamination
requiring a significant increase in project costs has been discovered
during the development of a project or where a municipality has reas-
sessed all or part of the project site resulting in an increase in prop-
erty taxes of more than 50%.

Section 3: Adds a new subdivision to section 874 of the general munici-
pal law stating that IDAs may not grant tax exemptions to a project
already in development unless environmental contamination requiring a
significant increase in project costs has been discovered during the
development of a project or where a municipality has reassessed all or
part of the project site resulting in an increase in property taxes of
more than 50%.

Section 4: Effective date.

 
JUSTIFICATION:

The purpose of IDA assistance is to provide incentives to companies to
persuade them to locate or expand operations in a community.  Therefore,
if a company is already planning to move to or expand its operations in
a community, there is no justification for giving that company taxpay-
er-funded incentives to persuade them to do something they would  have
done even without the incentives. This bill prohibits IDAs from giving
financial incentives or subsidies or granting tax exemptions to projects
that have already started development. If a company has already begun
construction on a project, they are clearly committed to the location,
and have no need for taxpayer-funded incentives.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S4668A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4668--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2019
                                ___________
 
 Introduced  by  Sens.  SKOUFIS, MAYER, BIAGGI, KRUEGER -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Local  Government  -- recommitted to the Committee on Local Government
   in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN ACT to amend the general municipal law, in relation to preventing the
   use  of  funds,  financial incentives, subsidies or tax exemptions for
   projects already in development
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  854  of  the general municipal law is amended by
 adding a new subdivision 21 to read as follows:
   (21) "IN  DEVELOPMENT"  -  SHALL  MEAN  A  PROJECT  FOR  WHICH  ACTIVE
 CONSTRUCTION,  INCLUDING BUT NOT LIMITED TO ERECTION OF BUILDING FOUNDA-
 TIONS OR STRUCTURE, HAS ALREADY COMMENCED.
   § 2. Section 862 of the general municipal law is amended by  adding  a
 new subdivision 3 to read as follows:
   (3)  EXCEPT  WHERE ENVIRONMENTAL CONTAMINATION REQUIRING A SIGNIFICANT
 INCREASE IN PROJECT COSTS IS DISCOVERED DURING THE  DEVELOPMENT  OF  THE
 PROJECT  OR  WHERE  A  MUNICIPALITY  HAS  REASSESSED  ALL OR PART OF THE
 PROJECT SITE RESULTING IN AN INCREASE IN PROPERTY  TAXES  OF  MORE  THAN
 FIFTY PERCENT, NO FUNDS, FINANCIAL INCENTIVES OR SUBSIDIES OF THE AGENCY
 SHALL  BE USED IN RESPECT OF ANY PROJECT WHICH IS ALREADY IN DEVELOPMENT
 AT THE TIME SUCH PROJECT APPLIES FOR SUCH FUNDS,  FINANCIAL  ASSISTANCE,
 INCENTIVES OR SUBSIDIES.
   §  3.  Section 874 of the general municipal law is amended by adding a
 new subdivision 13 to read as follows:
   (13) EXCEPT WHERE ENVIRONMENTAL CONTAMINATION REQUIRING A  SIGNIFICANT
 INCREASE  IN  PROJECT  COSTS IS DISCOVERED DURING THE DEVELOPMENT OF THE
 PROJECT OR WHERE A MUNICIPALITY  HAS  REASSESSED  ALL  OR  PART  OF  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10239-06-0

 S. 4668--A                          2
 
 PROJECT  SITE  RESULTING  IN  AN INCREASE IN PROPERTY TAXES OF MORE THAN
 FIFTY PERCENT, NO TAX EXEMPTIONS SHALL BE GRANTED TO ANY PROJECT IF  THE
 PROJECT  IS  ALREADY IN DEVELOPMENT AT THE TIME SUCH PROJECT APPLIES FOR
 THE ISSUANCE OF THE TAX EXEMPTION.
   § 4. This act shall take effect immediately.

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Senate Bill S4668A

Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

Bill Amendments

co-Sponsors

2019-S4668 - Details

2019-S4668 - Summary

2019-S4668 - Sponsor Memo

2019-S4668 - Bill Text download pdf

co-Sponsors

2019-S4668A (ACTIVE) - Details

2019-S4668A (ACTIVE) - Summary

2019-S4668A (ACTIVE) - Sponsor Memo

2019-S4668A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Archive: Last Bill Status - In Senate Committee Local Government Committee

Actions

Bill Amendments

co-Sponsors

2019-S4668 - Details

2019-S4668 - Summary

2019-S4668 - Sponsor Memo

2019-S4668 - Bill Text download pdf

co-Sponsors

2019-S4668A (ACTIVE) - Details

2019-S4668A (ACTIVE) - Summary

2019-S4668A (ACTIVE) - Sponsor Memo

2019-S4668A (ACTIVE) - Bill Text download pdf

Comments