BILL NUMBER: S8959

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to disallowing
county industrial development agencies from offering incentives in muni-
cipalities which have their own industrial development agency

 
PURPOSE:

To prohibit county industrial development agencies from offering incen-
tives in municipalities which have their own industrial development
agency to prevent companies from "shopping around" for the best finan-
cial benefit possible from industrial development agencies.

 
SUMMARY OF PROVISIONS:

Section 1: Amends General Municipal Law by adding a new section 863,
prohibiting a county agency from offering any financial incentives in a
municipality located within the county where such municipality has its
              

own agency.

Section 2: Effective date

 
JUSTIFICATION:

Public authorities are designed to function for the benefit of the
people of New York through various activities including financing,
building, and managing public projects and improving a variety of
governmental functions. Utilized at all levels of government, the State
relies on public authorities to deliver vital services to the people of
New York.

While public authorities perform important quasi-governmental functions
for the benefit of the people of New York, lack of transparency and
effective regulations may allow waste and abuse to occur, undermining
the public trust. Their unique niche between public agencies and private
entities restricts the extent of oversight, accountability and transpar-
ency in their actions

Preventing companies from "shopping around" for the best financial bene-
fit possible from industrial development agencies (IDAs) is crucial to
ensuring public authorities are acting in the best interests of the
public, not in the interest of companies. While IDAs across the state
provide important competitive incentives to attract and retain business,
competition among IDAs that serve overlapping communities may harm,
rather than benefit, the public by providing unnecessary or unwarranted
financial incentives.

This bill proposes to prohibit county IDAs from offering financial
assistance to private companies for projects located in a municipality
within the county where such municipality has its own IDA.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:
None to the state.

 
EFFECTIVE DATE:
This act shall take effect two years after it shall have become a law.