S T A T E O F N E W Y O R K
________________________________________________________________________
4042
2023-2024 Regular Sessions
I N S E N A T E
February 2, 2023
___________
Introduced by Sens. MAYER, HARCKHAM, KRUEGER, SKOUFIS, STAVISKY -- 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 industrial
development agencies
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 22 to read as follows:
(22) "LABOR ORGANIZATION" -- SHALL MEAN ANY ORGANIZATION WHICH EXISTS
AND IS CONSTITUTED FOR THE PURPOSE, IN WHOLE OR IN PART, OF COLLECTIVE
BARGAINING, OR OF DEALING WITH EMPLOYERS CONCERNING GRIEVANCES, TERMS OR
CONDITIONS OF EMPLOYMENT, OR OF OTHER MUTUAL AID OR PROTECTION AND WHICH
IS NOT A COMPANY UNION.
§ 2. Subdivision 2 of section 856 of the general municipal law, as
amended by chapter 356 of the laws of 1993, is amended to read as
follows:
2. An agency shall be a corporate governmental agency, constituting a
public benefit corporation. Except as otherwise provided by special act
of the legislature, an agency shall consist of not less than three nor
more than seven members who shall be appointed by the governing body of
each municipality and who shall serve at the pleasure of the appointing
authority. Such members [may] SHALL include [representatives] AT LEAST
ONE REPRESENTATIVE of [local government, school boards, organized labor
and business] A LOCAL LABOR ORGANIZATION. A member shall continue to
hold office until his successor is appointed and has qualified. The
governing body of each municipality shall designate the first chairman
and file with the secretary of state a certificate of appointment or
reappointment of any member. Such members shall receive no compensation
for their services but shall be entitled to the necessary expenses,
including traveling expenses, incurred in the discharge of their duties.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08390-01-3
S. 4042 2
§ 3. Section 859-a of the general municipal law, as added by chapter
356 of the laws of 1993, subdivision 1-a as added by chapter 766 of the
laws of 2022, subdivisions 4, 5 and 6 as added by chapter 563 of the
laws of 2015 and paragraph (b) of subdivision 5 as amended by section 7
of part X of chapter 59 of the laws of 2021, is amended to read as
follows:
§ 859-a. Additional prerequisites to the provisions of financial
assistance OR PAYMENTS IN LIEU OF TAXES. Prior to providing any finan-
cial assistance OR PAYMENTS IN LIEU OF TAXES of more than one hundred
thousand dollars to any project, the agency must comply with the follow-
ing prerequisites:
1. The agency must adopt a resolution describing the project and the
financial assistance OR PAYMENTS IN LIEU OF TAXES that the agency is
contemplating with respect to such project. Such assistance OR PAYMENTS
IN LIEU OF TAXES shall be consistent with the uniform tax exemption
policy adopted by the agency pursuant to subdivision four of section
eight hundred seventy-four of this [chapter] TITLE, unless the agency
has followed the procedures for deviation from such policy specified in
paragraph (b) of such subdivision.
1-a. The agency shall deliver a copy of the resolution adopted pursu-
ant to subdivision one of this section by certified mail, return receipt
requested, to the chief executive officer of each affected local taxing
jurisdiction. When the affected local taxing jurisdiction is a school
district, the agency shall deliver a copy of such resolution by certi-
fied mail, return receipt requested, to the school board and district
superintendent of each affected school district.
2. The agency must hold a public hearing with respect to the project
and the proposed financial assistance OR PAYMENTS IN LIEU OF TAXES being
contemplated by the agency. Said public hearing shall be held in a city,
town or village where the project proposes to locate. At said public
hearing, interested parties shall be provided reasonable opportunity,
both orally and in writing, to present their views with respect to the
project.
3. The agency must give at least ten days published notice of said
public hearing and shall, at the same time, provide notice of such hear-
ing to the chief executive officer of each affected tax jurisdiction
within which the project is located, EACH SCHOOL BOARD PRESIDENT AND
SUPERINTENDENT OF EACH SCHOOL DISTRICT WITHIN WHICH THE PROJECT IS
LOCATED, AND TO ALL STATE SENATORS AND MEMBERS OF THE STATE ASSEMBLY WHO
REPRESENT ANY PORTION OF ANY AFFECTED TAX JURISDICTION THAT IS SUBJECT
TO THE PROPOSED FINANCIAL ASSISTANCE OR PAYMENTS IN LIEU OF TAXES. The
notice of hearing must state the time and place of the hearing, contain
a general, functional description of the project, describe the prospec-
tive location of the project, identify the initial owner, operator or
manager of the project and generally describe the financial assistance
OR PAYMENTS IN LIEU OF TAXES contemplated by the agency with respect to
the project.
4. Each agency shall develop a standard application form, which shall
be used by the agency to accept requests for financial assistance OR
PAYMENTS IN LIEU OF TAXES from all individuals, firms, companies, devel-
opers or other entities or organizations. The standard application form
shall be submitted by or on behalf of the applicant, and subscribed and
affirmed under the penalties of perjury by the applicant, or on behalf
of the applicant by the chief executive officer or such other individual
that is duly authorized to bind the applicant, as true, accurate and
complete to the best of his or her knowledge. The standard application
S. 4042 3
form shall include the following, and may include such other supple-
mental information as determined to be necessary and appropriate by the
agency, including supporting documents and information provided by or on
behalf of the applicant:
(a) the name and address of the project applicant;
(b) a description of the proposed project for which financial assist-
ance OR PAYMENTS IN LIEU OF TAXES is requested, including the type of
project, proposed location and purpose of the project;
(c) the amount and type of financial assistance OR PAYMENTS IN LIEU OF
TAXES being requested, including the estimated value of each type of tax
exemption sought to be claimed by reason of agency involvement in the
project;
(d) a statement that there is a likelihood that the project would not
be undertaken but for the financial assistance OR PAYMENTS IN LIEU OF
TAXES provided by the agency or, if the project could be undertaken
without financial assistance OR PAYMENTS IN LIEU OF TAXES provided by
the agency, a statement indicating why the project should be undertaken
by the agency;
(e) an estimate of capital costs of the project, including all costs
of real property and equipment acquisition and building construction or
reconstruction, financed from private sector sources, an estimate of the
percentage of project costs financed from public sector sources, and an
estimate of both the amount to be invested by the applicant and the
amount to be borrowed to finance the project[.];
(f) the projected number of full time equivalent jobs that would be
retained and that would be created if the request for financial assist-
ance OR PAYMENTS IN LIEU OF TAXES is granted, the projected timeframe
for the creation of new jobs, the estimated salary and fringe benefit
averages or ranges for categories of the jobs that would be retained or
created if the request for financial assistance OR PAYMENTS IN LIEU OF
TAXES is granted, and an estimate of the number of residents of the
economic development region as established pursuant to section two
hundred thirty of the economic development law or the labor market area
as defined by the agency, in which the project is located that would
fill such jobs. The labor market area defined by the agency for this
purpose may include no more than six contiguous counties in the state,
including the county in which the project is to be located;
(g) a statement to the effect that the provisions of subdivision one
of section eight hundred sixty-two of this [chapter] TITLE will not be
violated if financial assistance OR PAYMENTS IN LIEU OF TAXES is
provided for the proposed project;
(h) a statement that the owner, occupant or operator receiving finan-
cial assistance OR PAYMENTS IN LIEU OF TAXES is in substantial compli-
ance 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 OR PAYMENTS IN LIEU OF TAXES and
the reimbursement of an amount equal to all or part of any tax
exemptions claimed by reason of agency involvement in the project.
5. Each agency shall develop, and adopt by resolution, uniform crite-
ria for the evaluation and selection for each category of projects for
which financial assistance OR PAYMENTS IN LIEU OF TAXES will be
provided. At a minimum, the criteria shall require that, for each
project, the following must occur prior to the approval of the provision
of financial assistance OR PAYMENTS IN LIEU OF TAXES:
S. 4042 4
(a) an assessment by the agency of all material information included
in connection with the application for financial assistance OR PAYMENTS
IN LIEU OF TAXES, as necessary to afford a reasonable basis for the
decision by the agency to provide financial assistance OR PAYMENTS IN
LIEU OF TAXES for the project;
(b) a written cost-benefit analysis by the agency that identifies the
extent to which a project will create or retain permanent, private
sector jobs; the estimated value of any tax exemptions to be provided;
the amount of private sector investment generated or likely to be gener-
ated by the proposed project; the contribution of the project to the
state's renewable energy goals and emission reduction targets as set
forth in the state energy plan adopted pursuant to section 6-104 of the
energy law; the likelihood of accomplishing the proposed project in a
timely fashion; and the extent to which the proposed project will
provide additional sources of revenue for municipalities and school
districts; and any other public benefits that might occur as a result of
the project;
(c) a statement by the applicant that the project, as of the date of
the application, is in substantial compliance with all provisions of
this article including, but not limited to, the provisions of this
section and subdivision one of section eight hundred sixty-two of this
[chapter] TITLE; and
(d) if the project involves the removal or abandonment of a facility
or plant within the state, notification by the agency to the chief exec-
utive officer or officers of the municipality or municipalities in which
the facility or plant was located.
6. Each agency shall develop a uniform agency project agreement that
sets forth terms and conditions under which financial assistance OR
PAYMENTS IN LIEU OF TAXES shall be provided. The uniform agency project
agreement shall be used by the agency and no financial assistance OR
PAYMENTS IN LIEU OF TAXES shall be provided in the absence of the
execution of such an agreement. The uniform agency project agreement
shall, at a minimum:
(a) describe the project and the financial assistance OR PAYMENTS IN
LIEU OF TAXES, including the amount and type, to be provided, and the
agency purpose to be achieved;
(b) require each project owner, occupant or operator receiving finan-
cial benefits OR PAYMENTS IN LIEU OF TAXES to provide annually a certi-
fied statement and documentation: (i) enumerating the full time equiv-
alent jobs retained and the full time equivalent jobs created as a
result of the financial assistance OR PAYMENTS IN LIEU OF TAXES, by
category, including full time equivalent independent contractors or
employees of independent contractors that work at the project location,
and (ii) indicating that the salary and fringe benefit averages or rang-
es for categories of jobs retained and jobs created that was provided in
the application is still accurate and if it is not still accurate,
providing a revised list of salary and fringe benefit averages or ranges
for categories of jobs retained and jobs created[.];
(c) indicate the dates when PILOT payments are to be made and provide
an estimate of the amounts for each affected tax jurisdiction of any
payments in lieu of taxes that are included as part of the transaction,
or formula or formulas by which those amounts may be calculated. In lieu
of providing such information, a copy of an executed payment in lieu of
tax agreement that contains the same information may be attached to the
uniform agency project agreement;
S. 4042 5
[(e)] (D) provide for the suspension or discontinuance of financial
assistance OR PAYMENTS IN LIEU OF TAXES, or for the modification of any
payment in lieu of tax agreement to require increased payments, in
accordance with policies developed by the agency pursuant to section
eight hundred seventy-four of this title;
[(f)] (E) provide for the return of all or a part of the financial
assistance OR PAYMENTS IN LIEU OF TAXES provided for the project,
including all or part of the amount of any tax exemptions, which shall
be redistributed to the appropriate affected tax jurisdiction, as
provided for in policies developed by the agency pursuant to section
eight hundred seventy-four of this title, unless agreed to otherwise by
any local taxing jurisdiction or jurisdictions; and
[(g)] (F) provide that the owner, occupant or operator receiving
financial assistance OR PAYMENTS IN LIEU OF TAXES shall certify, under
penalty of perjury, that it is in substantial compliance with all local,
state and federal tax, worker protection and environmental laws, rules
and regulations.
§ 4. The general municipal law is amended by adding a new section
859-c to read as follows:
§ 859-C. NOTICE OF AGENDA. A PRINTED CALENDAR OF ITEMS TO BE HEARD,
WHICH MAY BE SUBJECT TO LATER AMENDMENT, SHALL BE MADE AVAILABLE TO THE
PUBLIC AND FORWARDED TO THE MEMBERS AND CHAIRMAN OF THE INDUSTRIAL
DEVELOPMENT AGENCY AT LEAST THREE DAYS IN ADVANCE OF THE MEETING. WHERE
AN INDUSTRIAL DEVELOPMENT AGENCY MAINTAINS A WEBSITE, THE NOTICE OF
AGENDA SHALL ALSO BE POSTED ON SUCH INDUSTRIAL DEVELOPMENT AGENCY'S
WEBSITE.
§ 5. The general municipal law is amended by adding a new section
859-d to read as follows:
§ 859-D. SCHOOL BOARD REPORTING. EVERY INDUSTRIAL DEVELOPMENT AGENCY,
CONTINUED OR CREATED BY THIS CHAPTER OR ANY OTHER LAW OF THE STATE SHALL
SUBMIT TO THE LOCAL SCHOOL BOARD PRESIDENT AND SUPERINTENDENT OR BOARDS
PRESIDENTS AND SUPERINTENDENTS OVERLAPPING WITH AN INDUSTRIAL DEVELOP-
MENT AGENCY, WITHIN NINETY DAYS AFTER THE END OF ITS FISCAL YEAR, A COPY
OF THE FINAL REPORT REQUIRED BY SUBDIVISION TWO OF SECTION TWENTY-EIGHT
HUNDRED OF THE PUBLIC AUTHORITIES LAW AND THE AUDITS REQUIRED BY SUBDI-
VISION TWO OF SECTION TWENTY-EIGHT HUNDRED TWO OF THE PUBLIC AUTHORITIES
LAW.
§ 6. This act shall take effect immediately.
