Assembly Bill A10157

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10157
 
                           I N  A S S E M B L Y
 
                             February 12, 2026
                                ___________
 
 Introduced  by  M. of A. JACOBSON, EACHUS, KAY -- read once and referred
   to the Committee on Local Governments
 
 AN ACT to amend the general municipal law  and  the  executive  law,  in
   relation  to extending the term and authority of the independent moni-
   tor for the Orange county industrial development agency, and modifying
   the applicability of certain tax exemptions based  on  population;  to
   amend part III of chapter 58 of the laws of 2023, amending the general
   municipal  law  and  the executive law relating to directing the state
   inspector general to appoint an independent  monitor  for  the  Orange
   county industrial development agency, in relation to the effectiveness
   thereof;  and  providing for the repeal of certain provisions upon the
   expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 5 of section 912 of the general municipal law,
 as added by section 1 of part III of chapter 58 of the laws of 2023,  is
 renumbered subdivision 8.
   § 2. Section 912 of the general municipal law, as amended by section 1
 of  part  III  of  chapter  58  of the laws of 2023 and subdivision 8 as
 renumbered by section one of this act, is renumbered section  912-b  and
 amended to read as follows:
   § 912-b. Orange county industrial development agency. 1. For the bene-
 fit  of  the county of Orange and the inhabitants thereof, an industrial
 development agency, to be known as the ORANGE COUNTY INDUSTRIAL DEVELOP-
 MENT AGENCY, is hereby established for the accomplishment of any or  all
 of the purposes specified in title one of this article. It shall consti-
 tute  a  body  corporate  and politic, and be perpetual in duration.  It
 shall have the powers and duties now or hereafter conferred by title one
 of this article upon industrial development agencies. It shall be organ-
 ized in a manner prescribed by and be subject to the provisions of title
 one of this article. Its members shall be  appointed  by  the  governing
 body  of  the  county  of  Orange. The agency, its members, officers and
 employees and its operations and activities shall  in  all  respects  be
 governed by the provisions of title one of this article.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14538-03-6
 A. 10157                            2
 
   2. For purposes of this section[,]:
   (A) "financial assistance" shall mean any financial assistance offered
 by  the  Orange  county  industrial  development agency for any project,
 including but not limited to, a payment in lieu of taxes  agreement,  an
 agreement  to waive sales tax, or an agreement to waive mortgage record-
 ing taxes.
   (B) "MONITOR" SHALL MEAN THE  INDEPENDENT  MONITOR  APPOINTED  BY  THE
 STATE INSPECTOR GENERAL UNDER PARAGRAPH (A) OF SUBDIVISION THREE OF THIS
 SECTION.
   3.  (a)  In  accordance  with  the  powers  of the office of the state
 inspector general established by subdivision eight of section fifty-four
 of the executive law, the state inspector general shall appoint an inde-
 pendent monitor to carry out the provisions of  this  section  including
 but  not  limited to providing guidance and technical assistance related
 to the policies, practices, programs and decisions of the Orange  county
 industrial  development  agency, including but not limited to decisions,
 actions and policies  related  to  contracts  and  financial  assistance
 agreements. The state inspector general shall appoint such monitor with-
 in  ninety  days  of  the  effective date of this subdivision or as soon
 thereafter as is practicable.  After  such  appointment,  the  inspector
 general  may only remove the monitor for violations of law.  THE INSPEC-
 TOR GENERAL MAY EXTEND THE APPOINTMENT OF THE MONITOR UPON  THE  EXPIRA-
 TION  OF  SUCH MONITOR'S TERM AND SUCH EXTENSION SHALL NOT BE SUBJECT TO
 ARTICLE ELEVEN OF THE STATE FINANCE LAW.
   (b) The reasonable and necessary  expenses  incurred  by  the  monitor
 while performing [his or her] THEIR official duties shall be paid by the
 industrial  development  agency.  Notwithstanding any other provision of
 law, while acting within the scope of [his or her] THEIR authority,  the
 monitor  shall  not  be subject to any liability resulting from carrying
 out any of the powers expressly given in this section, and  the  monitor
 shall  be  entitled  to  defense  and  indemnification by the industrial
 development agency.
   (c) The monitor shall be entitled to attend all meetings of the indus-
 trial development agency, including executive sessions; provided  howev-
 er,  such monitor shall not be considered for purposes of establishing a
 quorum of the board, provided further that the monitor  may  be  excused
 from  executive  sessions  when  proposed, pending or current litigation
 involving the monitor or the office of the state inspector  general  are
 being  discussed. The industrial development agency shall cooperate with
 any monitor with access, within forty-eight hours of such  request  from
 the  monitor,  to  any necessary documents and records of the industrial
 development agency including but not limited to databases  and  planning
 documents,  financial  assistance  agreements,  and contracts consistent
 with all applicable  state  and  federal  statutes.  The  monitor  shall
 provide  a copy of such request for any document or record to the indus-
 trial development agency board.
   (d) The board shall provide the monitor with  copies  of  any  meeting
 agendas  and  all  resolutions and motions on such agenda for each board
 meeting no later than seventy-two hours prior to such board meeting.  If
 a  proposed  resolution  or  motion  is  for  the purpose of approving a
 contract or any financial assistance for  a  project,  the  board  clerk
 shall provide the monitor with copies of the proposed contract or finan-
 cial assistance language at least seven days prior to such meeting.
   (e)  In  the event the monitor is not provided with copies of proposed
 resolutions or motions seventy-two hours prior to a board meeting or  in
 the case of a proposed motion or resolution for the purpose of approving
 A. 10157                            3
 
 a  contract  or financial assistance, seven days prior to the next board
 meeting, the monitor may, at their discretion, remove an item  including
 board  resolutions  or  motions, from consideration by the board at such
 meeting.  Upon  failure  of the board to provide proposed resolutions or
 motions as required by this section, the monitor shall provide notice of
 failure to the board. An item removed from consideration by the  monitor
 may not be reconsidered by the board until the next board meeting.
   (f) The monitor shall have the power to review any modification to the
 industrial development agency's uniform tax exemption policy required by
 section  eight  hundred seventy-four of this article, contract or finan-
 cial assistance proposed for consideration by the industrial development
 agency proposed by the board on or after  the  effective  date  of  this
 subdivision;  provided  however, that all such proposed modifications to
 the  industrial  development  agency's  uniform  tax  exemption   policy
 required   by  section  eight  hundred  seventy-four  of  this  article,
 contracts or agreements shall be provided by the industrial  development
 agency board to the monitor at least seven days prior to adoption.
   (i)  At  least  seventy-two  hours prior to adoption by the board, the
 monitor shall advise the board or employees of the  industrial  develop-
 ment  agency,  in  writing, of the existence of violations of the indus-
 trial development agency's uniform  tax  exemption  policy  required  by
 section  eight hundred seventy-four of this article, actual or potential
 conflicts of interest, or violations of  law  arising  from  a  proposed
 contract  or financial assistance agreement that the industrial develop-
 ment agency shall consider before entering into  any  such  contract  or
 agreement.
   (ii)  The  board  shall document for its own records the existence and
 resolution of any actual or potential  conflict  of  interest  or  other
 violation identified by the monitor.
   (iii) No such contract or agreement may be approved or entered into by
 the  industrial  development  agency  unless  such  actual  or potential
 conflict of interest or violation has been resolved to the  satisfaction
 of the monitor.
   (iv)  AT  LEAST  SEVENTY-TWO HOURS PRIOR TO ADOPTION BY THE BOARD, THE
 MONITOR SHALL ADVISE THE  BOARD  OR  EMPLOYEES,  IN  WRITING,  OF  THEIR
 APPROVAL OR DISAPPROVAL OF ANY PROPOSED CONTRACT OR AGREEMENT FOR FINAN-
 CIAL  ASSISTANCE.  NO  SUCH CONTRACT OR AGREEMENT MAY BE VOTED ON BY THE
 BOARD UNLESS THE MONITOR HAS ADVISED THE BOARD OR EMPLOYEES, IN WRITING,
 OF THEIR APPROVAL.
   (V) At least seventy-two hours prior to adoption  by  the  board,  the
 monitor  shall advise the board or employees, in writing, of [its] THEIR
 disapproval of  any  changes  to  the  industrial  development  agency's
 uniform  tax exemption policy; provided additionally, that within thirty
 days after their appointment, the monitor shall  advise  such  board  or
 employees,  in writing, of [its] THEIR disapproval of any changes to the
 industrial development agency's uniform tax exemption policy made by the
 board that were made on or after the effective date of this  subdivision
 until  such  monitor's  appointment.  Any such change to the uniform tax
 exemption policy disapproved by the monitor shall not be effective,  and
 [may]  SHALL  not  be reconsidered by the board for at least ten days or
 until the next board meeting; provided, however, that any change to  the
 uniform  tax exemption policy that was made by the board on or after the
 effective date of this subdivision until such monitor's appointment that
 is disapproved by the monitor shall not affect the validity of any prior
 agreement entered into prior to the monitor's appointment.
 A. 10157                            4

   [(v)] (VI) At least seventy-two hours prior to adoption by the  board,
 the  monitor  shall  advise the board or employees, in writing, of [its]
 THEIR disapproval of any proposed contract or agreement with  a  project
 applying for financial assistance that would permit a deviation from the
 industrial development agency's uniform tax exemption policy required by
 section  eight  hundred  seventy-four of this article. Any such proposed
 contract or financial assistance agreement that would permit a deviation
 from such policy shall not be effective, and may not be reconsidered  by
 the board for at least ten days or until the next board meeting.
   [(vi)]  (VII)  The  monitor  shall  have  seventy-two  hours after any
 contract or financial assistance is approved to  review  such  financial
 assistance  or  contract,  and  if  a violation of policy related to the
 industrial development agency's uniform tax exemption policy required by
 section eight hundred seventy-four of this article, a conflict of inter-
 est, or a violation of law is identified during such  time  period,  the
 monitor  shall  notify the industrial development agency in writing. Any
 such contract or financial assistance so identified by the monitor shall
 not be legally binding or effective, and may not be reconsidered by  the
 board for at least ten days or until the next board meeting.
   (g)  The  board,  in  consultation  with  the  monitor,  shall adopt a
 conflict of interest policy, or revise an existing conflict of  interest
 policy, that complies with all existing applicable laws, rules and regu-
 lations,  including  article  eighteen  of this chapter. The conflict of
 interest policy shall include, but not be limited to:
   (i) a definition of the circumstances that constitute  a  conflict  of
 interest;
   (ii)  procedures  for identifying, disclosing and resolving a conflict
 of interest to the board;
   (iii) a requirement that the person with the conflict of interest  not
 be  present  at  or  participate  in board deliberations or votes on the
 matter giving rise to such conflict, provided that nothing in this para-
 graph shall prohibit the board from requesting that the person with  the
 conflict  of  interest present information as background or answer ques-
 tions at a board meeting prior to the commencement of  deliberations  or
 voting thereto;
   (iv) a prohibition against any attempt by the person with the conflict
 to  influence improperly the deliberation or voting on the matter giving
 rise to such conflict;
   (v) compliance with all applicable state laws and regulations; and
   (vi) a requirement that the existence and resolution of  the  conflict
 be  documented  in  the board's records, including in the minutes of any
 meeting at which the conflict was discussed or voted upon.
   (h) The monitor may advise the board and  any  industrial  development
 agency  officers,  employees or agents to undergo any training as deemed
 necessary.
   4. The monitor shall undertake an enhanced review of the budget  deci-
 sions  and financial assistance agreements of the industrial development
 agency.
   (a) The board shall annually submit the industrial  development  agen-
 cy's  proposed budget for the next succeeding fiscal year to the monitor
 no later than forty-five days prior to its adoption. The  monitor  shall
 review the budget to ensure that it, to the greatest extent possible, is
 consistent  with  purposes and necessary activities of the Orange county
 industrial development  agency,  and  that  it  does  not  substantially
 conflict  with the long term economic interests of Orange county and its
 constituents.
 A. 10157                            5
 
   (b) The board shall provide quarterly reports to the monitor and annu-
 al reports to the state inspector general on the operational  status  of
 the  industrial  development  agency.  In  addition,  the  monitor shall
 provide semi-annual reports to the state inspector general,  the  gover-
 nor,  the  temporary  president  of  the  senate, and the speaker of the
 assembly on the fiscal and operational status of the industrial develop-
 ment agency.  Such semi-annual report shall include a summary of all the
 contracts that the board entered into throughout the year.  All  reports
 shall be subject to review by the comptroller.
   (c) The monitor shall advise the board in the development and revision
 of  the  industrial  development  agency's  goals, implementation of its
 priorities and budgetary recommendations.
   (d) The monitor may recommend, and the board may consider by vote of a
 resolution at the next scheduled meeting of the board, cost saving meas-
 ures including, but not limited to, shared service agreements.
   (E) UPON RECEIVING A RECOMMENDATION, IN WRITING, FROM THE MONITOR, THE
 BOARD SHALL CONSIDER SUCH RECOMMENDATION AND, WITHIN FORTY-FIVE DAYS  OF
 RECEIVING SUCH RECOMMENDATION, HOLD A VOTE ON ACCEPTING SUCH RECOMMENDA-
 TION.  SUCH  RECOMMENDATION  SHALL  ONLY  BE REJECTED UPON AT LEAST FIVE
 MEMBERS OF THE BOARD VOTING TO REJECT SUCH RECOMMENDATION.  SUCH  RECOM-
 MENDATIONS  REQUIRING  SUCH A VOTE SHALL INCLUDE, BUT NOT BE LIMITED TO,
 RECOMMENDATIONS RELATING TO CONTRACTS, BUDGET DECISIONS,  AND  FINANCIAL
 ASSISTANCE AGREEMENTS.
   5.  THE MONITOR SHALL, AT THEIR DISCRETION, DIRECT THE BOARD TO RECOUP
 FINANCIAL ASSISTANCE, IN FULL OR IN PART, WHERE THE RECIPIENT OF  FINAN-
 CIAL  ASSISTANCE FAILED TO EXECUTE AND COMPLETE THE TERMS OF A CONTRACT,
 AGREEMENT OR UNDERSTANDING INCLUDING, BUT NOT LIMITED TO,  JOB  CREATION
 GOALS AND THE DEVELOPMENT OF PROMISED FACILITIES OR OPERATIONS.
   6. THE ORANGE COUNTY FUNDING CORPORATION, ESTABLISHED BY ORANGE COUNTY
 RESOLUTION  NUMBER ONE HUNDRED TWENTY-FIVE OF THE YEAR TWO THOUSAND TEN,
 SHALL ALSO COMPLY WITH THE PROVISIONS OF THIS SECTION IN THE SAME MANNER
 AS THE ORANGE COUNTY INDUSTRIAL DEVELOPMENT AGENCY.  THE  MONITOR  SHALL
 ALSO  HAVE  ALL  THE  SAME  POWERS  AND AUTHORITY, AS ENUMERATED IN THIS
 SECTION IN RELATION TO THE ORANGE COUNTY INDUSTRIAL DEVELOPMENT  AGENCY,
 IN RELATION TO SUCH ORANGE COUNTY FUNDING CORPORATION.
   7.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, THE
 MONITOR MAY COMMENCE AN ACTION IN ANY COURT  OF  COMPETENT  JURISDICTION
 AGAINST  THE AGENCY WHERE MONEY IS OWED BY THE AGENCY INCLUDING, BUT NOT
 LIMITED TO, ANY PAYMENTS REQUIRED FOR THE MONITOR'S LEGAL COUNSEL.
   8. Nothing in this section shall be construed to abrogate  the  duties
 and  responsibilities  of the board consistent with applicable state law
 and regulations.
   § 3. Subdivision 8 of section 54 of the executive  law,  as  added  by
 section  2  of part III of chapter 58 of the laws of 2023, is amended to
 read as follows:
   8. Appoint an independent monitor to provide  guidance  and  technical
 assistance related to the policies, practices, programs and decisions of
 the Orange county industrial development agency, as authorized in subdi-
 visions  two,  three,  four [and], five, SIX, SEVEN AND EIGHT of section
 nine hundred [twelve] TWELVE-B of the general municipal law.
   § 4. Notwithstanding any other provision of law to the contrary, in  a
 county with a population of at least 390,000 and no greater than 415,000
 according  to  the  latest federal decennial census, any privately-owned
 project receiving benefits under section 485-b of the real property  tax
 law  or a payment in lieu of taxes agreement from an industrial develop-
 ment agency shall be subject to the payment of no less  than  prevailing
 A. 10157                            6
 
 wages  for  all employees of any contractors and subcontractors utilized
 for such project, consistent with article 8 of the labor  law;  provided
 however,  that any such privately-owned project which utilizes a project
 labor  agreement  and  receives  either an exemption pursuant to section
 485-b of the real property tax law or a payment in lieu of taxes  agree-
 ment from an industrial development agency shall not be subject to arti-
 cle 8 of the labor law.
   § 5. Section 3 of part III of chapter 58 of the laws of 2023, amending
 the  general  municipal  law and the executive law relating to directing
 the state inspector general to appoint an independent  monitor  for  the
 Orange  county  industrial  development  agency,  is  amended to read as
 follows:
   § 3. This act shall take effect immediately;  provided  however,  that
 subdivisions  two,  three,  four  and five of section 912 of the general
 municipal law, as added by section one of this act, and subdivision 8 of
 section 54 of the executive law, as added by section two  of  this  act,
 shall  expire and be deemed repealed [three] SIX years after such effec-
 tive date.
   § 6. This act shall take effect immediately; provided,  however,  that
 the  amendments  to  subdivisions  2, 3, 4 and 8 of section 912-b of the
 general municipal law made by section two of this act and the amendments
 to subdivision 8 of section 54 of the  executive  law  made  by  section
 three  of  this act shall not affect the repeal of such subdivisions and
 shall be deemed to expire therewith; and provided further, however, that
 subdivisions 5, 6, and 7 of section 912-b of the general  municipal  law
 as  added  by section two of this act and section four of this act shall
 expire and be deemed repealed on the same date as subdivisions 2,  3,  4
 and 8 of section 912-b of the general municipal law and subdivision 8 of
 section 54 of the executive law.