Legislation

* § 912-b. Orange county industrial development agency. 1. For the
benefit of the county of Orange and the inhabitants thereof, an
industrial development agency, to be known as the ORANGE COUNTY
INDUSTRIAL DEVELOPMENT AGENCY, is hereby established for the
accomplishment of any or all of the purposes specified in title one of
this article. It shall constitute 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 organized 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.

** 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
recording taxes.

(b) "monitor" shall mean the independent monitor appointed by the
state inspector general under paragraph (a) of subdivision three of this
section.

(c) "funding corporation" shall mean the Orange County Funding
Corporation, a local development corporation established pursuant to
section fourteen hundred eleven of the not-for-profit corporation law.

** NB Repealed May 3, 2030

** 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
independent 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 and the funding corporation,
including but not limited to decisions, actions and policies related to
contracts and financial assistance agreements. The state inspector
general shall appoint such monitor within 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.

(b) The reasonable and necessary expenses incurred by the monitor
while performing their official duties shall be paid by the industrial
development agency and the funding corporation, in such proportions as
the state inspector general shall verify and determine are attributable
to each entity's matters. The state inspector general shall determine
and verify: (i) the reasonable and necessary expenses incurred by the
monitor in the performance of duties under this section; (ii) any
reasonable and necessary expenses and costs, including but not limited
to attorneys' fees and litigation costs, incurred by the monitor or the
office of the state inspector general in connection with the
appointment, retention, administration, oversight, defense,
indemnification, representation, enforcement or continuation of the
monitor; and (iii) the proportion of such expenses and costs
attributable to the industrial development agency and the funding
corporation. The obligation to pay pursuant to this paragraph shall
apply to all such expenses and costs incurred on and after the date the
monitor was first appointed pursuant to paragraph (a) of this
subdivision, whether or not previously invoiced, noticed or demanded.
Not later than thirty days after the effective date of the chapter
amending the laws of two thousand twenty-six that amended this
paragraph, each such entity shall pay all unpaid amounts determined and
verified by the state inspector general pursuant to this paragraph;
provided, however, that if the state inspector general provides written
notice of any additional amount due after such date, such amount shall
be paid within thirty days after receipt of such notice. For each state
fiscal year thereafter, each such entity shall pay any amount determined
and verified by the state inspector general pursuant to this paragraph
not later than thirty days after receipt of written notice from the
state inspector general of the amount due. Notwithstanding any other
provision of law to the contrary, if the industrial development agency
or the funding corporation fails to pay any amount required to be paid
pursuant to this paragraph by the applicable date required by this
paragraph, any contract or financial assistance entered into or proposed
to be entered into on or after such applicable date by such industrial
development agency or funding corporation shall not be legally binding
or effective and may not be reconsidered until the state inspector
general certifies in writing that all amounts required to be paid by
such agency or corporation pursuant to this paragraph, including all
unpaid amounts incurred before the effective date of the chapter of the
laws of two thousand twenty-six that amended this paragraph, have been
paid in full; provided, however, that nothing in this sentence shall
affect the validity of any contract or financial assistance entered into
before such applicable date. Notice of any suspension of the industrial
development agency or funding corporation's ability to enter contracts
or provide financial assistance pursuant to this section shall be
publicly posted both on the website of the state inspector general, and
on the website or websites of the industrial development agency or
funding corporation. Any action taken in violation of this paragraph
shall be void and shall not be legally binding or effective.
Notwithstanding any other provision of law, while acting within the
scope of 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 and the funding
corporation.

(c) The monitor shall be entitled to attend all meetings of the
industrial development agency and the funding corporation, including
executive sessions; provided however, 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 industrial 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
financial 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 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
financial 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
development agency, in writing, of the existence of violations of the
industrial 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
development 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 voted on, 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, and unless the monitor has advised the
board or employees, in writing, of their approval.

(iv) At least seventy-two hours prior to adoption by the board, the
monitor shall advise the board or employees, in writing, of 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 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
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.

(v) At least seventy-two hours prior to adoption by the board, the
monitor shall advise the board or employees, in writing, of 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) 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 interest, 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
regulations, 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
paragraph shall prohibit the board from requesting that the person with
the conflict of interest present information as background or answer
questions 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.

(i) (i) The funding corporation shall provide the monitor with copies
of any meeting agendas and all proposed resolutions and motions to be
considered by the board of directors no later than seventy-two hours
prior to such meeting. If a proposed resolution or motion is for the
purpose of authorizing or approving a contract, agreement, financing,
issuance of bonds, notes or other obligations, property transaction, or
project, the funding corporation shall provide the monitor with copies
of the proposed transactional documents and material supporting
documentation at least seven days prior to such meeting.

(ii) In the event the monitor is not provided with materials within
the time periods required by this paragraph, the monitor may, in their
discretion, remove an item from consideration by the board of directors
at such meeting. An item removed from consideration by the monitor may
not be reconsidered by the board of directors until the next meeting.

(iii) At least seventy-two hours prior to consideration by the board
of directors, the monitor shall advise the funding corporation, in
writing, of the existence of: (A) any actual or potential conflicts of
interest; (B) any violations of the funding corporation's conflict of
interest policy; (C) any violations of section seven hundred fifteen or
section seven hundred fifteen-a of the not-for-profit corporation law;
(D) any failure to comply with the funding corporation's certificate of
incorporation; or (E) any other violations of law arising from a
proposed transaction or project.

(iv) The board of directors 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.

(v) No such contract, agreement, financing, issuance, property
transaction, or project may be voted on, approved, authorized, or
entered into by the funding corporation unless such actual or potential
conflict of interest or violation has been resolved to the satisfaction
of the monitor and the monitor has advised the funding corporation, in
writing, of the monitor's approval.

(vi) In determining whether to approve a proposed project or
financing, the monitor may require the funding corporation to
demonstrate that there is a commitment of funds sufficient to finance
the acquisition and construction of the project, taking into
consideration commitments of funds, projections of fees or other
revenues, and security.

** NB Repealed May 3, 2030

** 4. The monitor shall undertake an enhanced review of the budget
decisions and financial assistance agreements of the industrial
development agency.

(a) The board shall annually submit the industrial development
agency'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.

(b) The board shall provide quarterly reports to the monitor and
annual 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
governor, the temporary president of the senate, and the speaker of the
assembly on the fiscal and operational status of the industrial
development 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
measures 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
recommendation. Such recommendation shall only be rejected upon at least
five members of the board voting to reject such recommendation. Such
recommendations requiring such a vote shall include, but not be limited
to, recommendations relating to contracts, budget decisions, and
financial assistance agreements.

** NB Repealed May 3, 2030

** 5. The monitor shall, at their discretion, direct the board to
recoup financial assistance, in full or in part, where the recipient of
financial 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.

** NB Repealed May 3, 2030

** 6. The Orange county funding corporation, established by Orange
county resolution number one hundred twenty-five of the year two
thousand ten is a local development corporation established pursuant to
section fourteen hundred eleven of the not-for-profit corporation law.
The funding corporation shall comply with the applicable provisions of
subdivision three of this section, and the monitor shall have the powers
set forth in paragraph (i) of subdivision three of this section with
respect to the funding corporation.

** NB Repealed May 3, 2030

** 7. Notwithstanding any other provision of law to the contrary, the
monitor may commence an action or special proceeding in any court of
competent jurisdiction to enjoin unlawful acts or practices by the
industrial development agency or the funding corporation and to compel
compliance with this section, including the recovery of amounts due to
the monitor for reasonable and necessary expenses and costs, including
but not limited to attorneys' fees and litigation costs, authorized by
this section.

** NB Repealed May 3, 2030

** 8. Nothing in this section shall be construed to abrogate the
duties and responsibilities of the board consistent with applicable
state law and regulations.

** NB Repealed May 3, 2030

* NB Agency expires per §§ 856 and 882