LBD14538-03-6
S. 9052 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
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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.
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[(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.
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(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
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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.