S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4737
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 6, 2025
                                ___________
 
 Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit-
   tee on Economic Development
 
 AN ACT to amend the state finance law, the general city law, the general
   municipal law, and the administrative code of the city of New York, in
   relation  to  an  analysis  of  the  return on investment for economic
   development programs

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "return on investment act".
   § 2. Section 8 of the state finance law is amended  by  adding  a  new
 subdivision 21 to read as follows:
   21. (A) COMPLETE AN ANALYSIS OF THE RETURN ON INVESTMENT, AS SUCH TERM
 IS  DEFINED  IN SECTION ONE HUNDRED EIGHTY OF THE TAX LAW, IN THE MANNER
 PRESCRIBED IN THIS SECTION, FOR EVERY:  CAPITAL  EXPENDITURE;  FINANCIAL
 ASSISTANCE;  CREDIT  AGAINST  A  TAX  IMPOSED; PAYMENT IN LIEU OF TAXES;
 DEVELOPMENT PLAN; LOCAL INCENTIVE; URBAN DEVELOPMENT ACTION AREA PROJECT
 AS DEFINED IN SECTION SIX HUNDRED NINETY-TWO OF  THE  GENERAL  MUNICIPAL
 LAW;  REDEVELOPMENT  PLAN  PURSUANT TO SECTION NINE HUNDRED SEVENTY-F OF
 THE GENERAL MUNICIPAL LAW; COMMUNITY DEVELOPMENT PROJECT AS  DEFINED  IN
 SECTION NINE HUNDRED FIFTY-SEVEN OF THE GENERAL MUNICIPAL LAW; REBATE OF
 SALES  TAXES  PAID;  OR  REBATE  OR DISCOUNT OF CHARGES FOR ENERGY, TO A
 PRIVATE ENTITY BY  ANY  DEPARTMENT,  AUTHORITY,  INDUSTRIAL  DEVELOPMENT
 AGENCY,  DEVELOPMENT CORPORATION, URBAN RENEWAL AGENCY, COUNCIL, COMMIS-
 SION, TRUST, OR OTHER INSTRUMENT OF THE STATE FOR THE PURPOSE OF ECONOM-
 IC DEVELOPMENT, UNLESS SUCH ANALYSIS IS OTHERWISE PROVIDED FOR BY ANOTH-
 ER STATUTE.
   (B) FOR  ANY  ONE-TIME  PROJECT  OR  PROGRAM,  THE  COMPTROLLER  SHALL
 COMPLETE  SUCH  ANALYSIS NO LATER THAN TWO YEARS AFTER THE COMPLETION OF
 THE PROJECT OR PROGRAM, OR FIVE YEARS  AFTER  ITS  EXECUTION,  WHICHEVER
 COMES FIRST.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08575-01-5
              

 A. 4737                             2
 
   (C)  FOR  ANY  RECURRING  PROGRAM, THE COMPTROLLER SHALL COMPLETE SUCH
 ANALYSIS OF THE PROGRAM NO LATER THAN TWO YEARS AFTER THE EFFECTIVE DATE
 OF THIS SECTION AND BY JANUARY FIRST EVERY FIVE YEARS THEREAFTER.
   (D)  ANY  ENTITY ADMINISTERING A PROGRAM OR PROJECT SET FORTH IN PARA-
 GRAPH (A) OF THIS SUBDIVISION SHALL FURNISH ANY REQUESTED INFORMATION TO
 THE COMPTROLLER TO COMPLETE SUCH ANALYSIS.
   (E) TO COMPLETE ANY SUCH ANALYSIS, THE COMPTROLLER MAY  CONTRACT  WITH
 AN ECONOMIC IMPACT FIRM OR MAY DELEGATE SUCH DUTY TO ANY INSTRUMENTALITY
 OF  THE  STATE OR MUNICIPAL CORPORATION WHICH ADMINISTERS THE PROGRAM OR
 PROJECT.
   (F) FOR THE PURPOSE OF THIS SUBDIVISION, "ECONOMIC DEVELOPMENT"  SHALL
 MEAN   ANY  PROJECT  OR  PROGRAM  FOR  THE  PROSPEROUS  DEVELOPMENT  AND
 PROTECTION OF THE LEGITIMATE INTEREST AND WELFARE OF NEW YORK  BUSINESS,
 INDUSTRY  AND  COMMERCE, WITHIN AND OUTSIDE THE STATE; THE EXPANSION AND
 DEVELOPMENT OF MARKETS FOR NEW YORK PRODUCTS; THE LOCATION AND  DEVELOP-
 MENT  OF NEW BUSINESS IN THE STATE AS WELL AS THE MAINTENANCE AND EXPAN-
 SION OF EXISTING BUSINESS; URBAN RENEWAL  AS  DEFINED  IN  SECTION  FIVE
 HUNDRED TWO OF THE GENERAL MUNICIPAL LAW; CREATION OR EXPANSION OF ENER-
 GY  INFRASTRUCTURE;  CREATION OR EXPANSION OF TRANSPORTATION INFRASTRUC-
 TURE; PROMOTION OF TOURISM; PROMOTION OF THE ARTS, CULTURAL AFFAIRS,  OR
 NATURAL HERITAGE; CREATION OR PRESERVATION OF HOUSING OTHER THAN ROUTINE
 MAINTENANCE; OR DECARBONIZATION OR WEATHERIZATION OF BUILDINGS.
   §  3.  The  general city law is amended by adding a new article 2-K to
 read as follows:
                                ARTICLE 2-K
                        RETURN ON INVESTMENT ANALYSIS
 SECTION 25-FF. RETURN ON INVESTMENT ANALYSIS.
   § 25-FF. RETURN ON INVESTMENT ANALYSIS. THE COMPTROLLER OF A CITY WITH
 A POPULATION OF ONE MILLION OR MORE SHALL, EVERY FIVE YEARS, COMPLETE AN
 ANALYSIS OF RETURN ON INVESTMENT, AS  DEFINED  IN  SECTION  ONE  HUNDRED
 EIGHTY OF THE TAX LAW, OF ANY CREDIT AGAINST A TAX IMPOSED BY SUCH CITY,
 REBATE OF SALES TAXES PAID, REBATE OF CHARGES FOR ENERGY, OR DISCOUNT OF
 CHARGES  FOR  ENERGY, PROVIDED FOR IN THIS CHAPTER, UNLESS SUCH ANALYSIS
 IS OTHERWISE PROVIDED FOR IN STATUTE.
   § 4. The general municipal law is amended  by  adding  a  new  section
 696-g to read as follows:
   §  696-G.  ANALYSIS  ON  RETURN  ON  INVESTMENT. EACH AGENCY SHALL, IN
 CONSULTATION WITH THE STATE COMPTROLLER, CONDUCT AN ANALYSIS  OF  RETURN
 ON  INVESTMENT, AS DEFINED IN SECTION ONE HUNDRED EIGHTY OF THE TAX LAW,
 OF EVERY EXISTING URBAN DEVELOPMENT ACTION AREA PROJECT IN ITS JURISDIC-
 TION NO LATER THAN FIVE YEARS AFTER THE EFFECTIVE DATE OF THIS  SECTION.
 ON  AND  AFTER  SUCH  DATE  THE ANALYSIS OF ANY FUTURE PROJECTS SHALL BE
 CONDUCTED BY THE STATE COMPTROLLER.
   § 5. Section 970-f of the general municipal law is amended by adding a
 new closing paragraph to read as follows:
   EACH REDEVELOPMENT PLAN SHALL INCLUDE AN ANALYSIS OF RETURN ON INVEST-
 MENT, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED EIGHTY OF  THE  TAX
 LAW.
   § 6. Section 22-823 of the administrative code of the city of New York
 is amended by adding a new subdivision j to read as follows:
   J.  COST  BENEFIT  ANALYSIS.  FOR EACH COVERED CONTRACT THE CITY COMP-
 TROLLER SHALL PREPARE A COST BENEFIT ANALYSIS OF SUCH CONTRACT NO  LATER
 THAN  TWO YEARS AFTER ITS COMPLETION, OR FIVE YEARS AFTER ITS EXECUTION,
 WHICHEVER COMES FIRST.
   § 7. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.