NY State Senate Bill 2023-S1240

Senate Bill S1240

2023-2024 Legislative Session

Relates to prohibiting industrial development agencies from incentivizing movements within the state

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Current 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to local government
Jan 10, 2023	referred to local government

co-Sponsors

2023-S1240 (ACTIVE) - Details

See Assembly Version of this Bill:: A1485
Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §862, Gen Muni L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S4674, A7200
2021-2022: S1656, A6993

2023-S1240 (ACTIVE) - Summary

Prohibits industrial development agencies from incentivizing movements within the state where any plant, facility, or personnel of the project occupant are abandoned or removed.

2023-S1240 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1240

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to prohibiting
industrial development agencies from incentivizing movements within the
state

 
PURPOSE:

The bill would tighten existing prohibitions on so-called "intra-state
piracy" that restrict local industrial development agencies from giving
financial assistance to a company to lure it from one part of New York
to another.

 
SUMMARY OF PROVISIONS:

  Section  1: Amends subdivision 1 of section 862 of the general munici-
pal law to tighten the existing prohibition on IDAs giving assistance to
projects that simply move jobs or facilities from one part of the  state
to another.

  Section 2: Effective Date.

 
JUSTIFICATION:

The  purpose of IDAs is to incentivize companies to locate in the county
or municipality of the IDA through the offer of financial assistance  in
the form of tax incentives, payment in lieu of taxes (PILOT) agreements,
and  other means. To avoid one municipality using incentives to "pirate"
a company from another part of New York, IDAs are prohibited from  using
their funds to incentivize an "industrial or manufacturing plant" moving
from one part of New York to another.  Unfortunately, the existing stat-
ute  contains  exceptions  that  are so broad and vague as to render the
prohibition virtually meaningless, and intra-state "piracy" occurs  with
regularity.  For  example,  in February, 2019 the Westchester County IDA
granted financial assistance to a business that closed its  facility  in
Yonkers  shipped  some  jobs  out of state and moved other jobs to a new
facility in Rye Brook, another community in Westchester County.

Simply moving jobs from one part of New York to another creates  no  net
benefit  for  state  residents and should not be encouraged by taxpayer-
funded subsidies.

 
LEGISLATIVE HISTORY:

Senate

2020- S4674, Referred to Local Government

2021-2022- S1656A, Passed Senate

Assembly

2020- A7200, Referred to Local Governments

2021-2022- A6993A, Reported to ways and means

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S1240 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1240
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2023
                                ___________
 
 Introduced  by  Sens.  SKOUFIS,  KRUEGER,  MAY,  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 prohibiting
   industrial development agencies from  incentivizing  movements  within
   the state

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 862 of the general municipal  law,
 as  amended by section 1 of part J of chapter 59 of the laws of 2013, is
 amended to read as follows:
   (1) No funds of the agency shall be used in respect of any project  if
 the  completion thereof would result in the removal of [an industrial or
 manufacturing] ANY plant, FACILITY OR PERSONNEL of the project  occupant
 from  one  area  of  the state to another area of the state [or], in the
 abandonment of one or more plants or facilities of the project  occupant
 located  within  the  state  OR  THE  UNEMPLOYMENT  OR RELOCATION OF ANY
 PERSONNEL WHO ARE EMPLOYED BY THE PROJECT OCCUPANT,  provided,  however,
 that  neither  restriction  shall apply if the agency shall determine on
 the basis of the application before it that the  project  is  reasonably
 necessary  to  discourage  the project occupant from removing such other
 plant or facility to a location  outside  the  state  or  is  reasonably
 necessary  to  preserve the competitive position of the project occupant
 in its respective  industry  DUE  TO  PHYSICAL,  ZONING,  OR  LOGISTICAL
 CONSTRAINTS AT SUCH PROJECT OCCUPANT'S EXISTING SITE WITHIN THE STATE.
   § 2. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01229-01-3

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Senate Bill S1240

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Sponsored By

James Skoufis