The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11003
 
                           I N  A S S E M B L Y
 
                             September 9, 2020
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Magnarelli)
   -- read once and referred to the Committee on Local Governments
 
 AN ACT to amend the general municipal law, in relation to requiring  the
   return  of  all  or  a part of the financial assistance provided for a
   project  where  the  project  has  material  shortfalls  or   material
   violations  and  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. Subdivision 11 of section 874 of the general municipal law,
 as added by chapter 563 of the laws of 2015, is amended and a new subdi-
 vision 13 is added to read as follows:
   (11)  Each  agency  shall  develop policies for the return of all or a
 part of the financial assistance provided for the project, including all
 or part of the amount of any tax exemptions, as specified in the policy,
 which may include but shall not be limited to material shortfalls in job
 creation and retention projections or material violations of  the  terms
 and  conditions  of  project agreements. THE AGENCY SHALL IMPLEMENT SUCH
 POLICIES CREATED IN ACCORDANCE WITH THIS SUBDIVISION TO  RETURN  ALL  OR
 PART  OF  THE  FINANCIAL  ASSISTANCE  PROVIDED FOR ANY PROJECT WHERE THE
 AGENCY'S ANNUAL ASSESSMENT OF A PROJECT SHOWS MATERIAL SHORTFALLS IN JOB
 CREATION AND RETENTION PROJECTIONS OR MATERIAL VIOLATIONS OF  THE  TERMS
 AND  CONDITIONS  OF PROJECT AGREEMENTS.  IF SUCH MATERIAL SHORTFALLS ARE
 THE DIRECT RESULT OF FACTORS BEYOND THE  AGENCY'S  CONTROL,  THE  AGENCY
 MUST  NOTIFY THE AUTHORITY'S BUDGET OFFICE IN WRITING OF THE WAIVER WITH
 A COMPREHENSIVE EXPLANATION. All such returned amounts of tax exemptions
 shall be redistributed to the  appropriate  affected  tax  jurisdiction,
 unless agreed to otherwise by any local taxing jurisdiction.
   (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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15682-03-0

 A. 11003                            2
 
 PROJECT IS ALREADY IN DEVELOPMENT AT THE TIME SUCH PROJECT  APPLIES  FOR
 THE ISSUANCE OF THE TAX EXEMPTION.
   §  2.  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.
   § 3. 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.
   §  4.  Paragraphs (h) and (i) of subdivision 4 of section 859-a of the
 general municipal law, as added by chapter 563 of the laws of 2015,  are
 amended and a new paragraph (j) is added to read as follows:
   (h)  a statement that the owner, occupant or operator receiving finan-
 cial assistance is in  substantial  compliance  with  applicable  local,
 state  and  federal tax, worker protection and environmental laws, rules
 and regulations; [and]
   (i) a statement acknowledging that the  submission  of  any  knowingly
 false  or  knowingly  misleading  information  may lead to the immediate
 termination of any financial assistance  and  the  reimbursement  of  an
 amount  equal  to all or part of any tax exemptions claimed by reason of
 agency involvement in the project[.]; AND
   (J) A STATEMENT REQUIRING THAT IF A PROJECT APPLICANT HAS RECEIVED  AN
 OFFER  OF  FINANCIAL ASSISTANCE FROM AN ECONOMIC DEVELOPMENT CORPORATION
 OR CORPORATIONS LOCATED OUTSIDE OF THE STATE THAT SUCH PROJECT APPLICANT
 DISCLOSE AND PROVIDE SUCH OFFER.
   § 5. This act shall take effect immediately.