STATE OF NEW YORK ________________________________________________________________________ 4042 2023-2024 Regular Sessions IN SENATE 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: 1 Section 1. Section 854 of the general municipal law is amended by 2 adding a new subdivision 22 to read as follows: 3 (22) "Labor organization" -- shall mean any organization which exists 4 and is constituted for the purpose, in whole or in part, of collective 5 bargaining, or of dealing with employers concerning grievances, terms or 6 conditions of employment, or of other mutual aid or protection and which 7 is not a company union. 8 § 2. Subdivision 2 of section 856 of the general municipal law, as 9 amended by chapter 356 of the laws of 1993, is amended to read as 10 follows: 11 2. An agency shall be a corporate governmental agency, constituting a 12 public benefit corporation. Except as otherwise provided by special act 13 of the legislature, an agency shall consist of not less than three nor 14 more than seven members who shall be appointed by the governing body of 15 each municipality and who shall serve at the pleasure of the appointing 16 authority. Such members [may] shall include [representatives] at least 17 one representative of [local government, school boards, organized labor 18 and business] a local labor organization. A member shall continue to 19 hold office until his successor is appointed and has qualified. The 20 governing body of each municipality shall designate the first chairman 21 and file with the secretary of state a certificate of appointment or 22 reappointment of any member. Such members shall receive no compensation 23 for their services but shall be entitled to the necessary expenses, 24 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 1 § 3. Section 859-a of the general municipal law, as added by chapter 2 356 of the laws of 1993, subdivision 1-a as added by chapter 766 of the 3 laws of 2022, subdivisions 4, 5 and 6 as added by chapter 563 of the 4 laws of 2015 and paragraph (b) of subdivision 5 as amended by section 7 5 of part X of chapter 59 of the laws of 2021, is amended to read as 6 follows: 7 § 859-a. Additional prerequisites to the provisions of financial 8 assistance or payments in lieu of taxes. Prior to providing any finan- 9 cial assistance or payments in lieu of taxes of more than one hundred 10 thousand dollars to any project, the agency must comply with the follow- 11 ing prerequisites: 12 1. The agency must adopt a resolution describing the project and the 13 financial assistance or payments in lieu of taxes that the agency is 14 contemplating with respect to such project. Such assistance or payments 15 in lieu of taxes shall be consistent with the uniform tax exemption 16 policy adopted by the agency pursuant to subdivision four of section 17 eight hundred seventy-four of this [chapter] title, unless the agency 18 has followed the procedures for deviation from such policy specified in 19 paragraph (b) of such subdivision. 20 1-a. The agency shall deliver a copy of the resolution adopted pursu- 21 ant to subdivision one of this section by certified mail, return receipt 22 requested, to the chief executive officer of each affected local taxing 23 jurisdiction. When the affected local taxing jurisdiction is a school 24 district, the agency shall deliver a copy of such resolution by certi- 25 fied mail, return receipt requested, to the school board and district 26 superintendent of each affected school district. 27 2. The agency must hold a public hearing with respect to the project 28 and the proposed financial assistance or payments in lieu of taxes being 29 contemplated by the agency. Said public hearing shall be held in a city, 30 town or village where the project proposes to locate. At said public 31 hearing, interested parties shall be provided reasonable opportunity, 32 both orally and in writing, to present their views with respect to the 33 project. 34 3. The agency must give at least ten days published notice of said 35 public hearing and shall, at the same time, provide notice of such hear- 36 ing to the chief executive officer of each affected tax jurisdiction 37 within which the project is located, each school board president and 38 superintendent of each school district within which the project is 39 located, and to all state senators and members of the state assembly who 40 represent any portion of any affected tax jurisdiction that is subject 41 to the proposed financial assistance or payments in lieu of taxes. The 42 notice of hearing must state the time and place of the hearing, contain 43 a general, functional description of the project, describe the prospec- 44 tive location of the project, identify the initial owner, operator or 45 manager of the project and generally describe the financial assistance 46 or payments in lieu of taxes contemplated by the agency with respect to 47 the project. 48 4. Each agency shall develop a standard application form, which shall 49 be used by the agency to accept requests for financial assistance or 50 payments in lieu of taxes from all individuals, firms, companies, devel- 51 opers or other entities or organizations. The standard application form 52 shall be submitted by or on behalf of the applicant, and subscribed and 53 affirmed under the penalties of perjury by the applicant, or on behalf 54 of the applicant by the chief executive officer or such other individual 55 that is duly authorized to bind the applicant, as true, accurate and 56 complete to the best of his or her knowledge. The standard application
S. 4042 3 1 form shall include the following, and may include such other supple- 2 mental information as determined to be necessary and appropriate by the 3 agency, including supporting documents and information provided by or on 4 behalf of the applicant: 5 (a) the name and address of the project applicant; 6 (b) a description of the proposed project for which financial assist- 7 ance or payments in lieu of taxes is requested, including the type of 8 project, proposed location and purpose of the project; 9 (c) the amount and type of financial assistance or payments in lieu of 10 taxes being requested, including the estimated value of each type of tax 11 exemption sought to be claimed by reason of agency involvement in the 12 project; 13 (d) a statement that there is a likelihood that the project would not 14 be undertaken but for the financial assistance or payments in lieu of 15 taxes provided by the agency or, if the project could be undertaken 16 without financial assistance or payments in lieu of taxes provided by 17 the agency, a statement indicating why the project should be undertaken 18 by the agency; 19 (e) an estimate of capital costs of the project, including all costs 20 of real property and equipment acquisition and building construction or 21 reconstruction, financed from private sector sources, an estimate of the 22 percentage of project costs financed from public sector sources, and an 23 estimate of both the amount to be invested by the applicant and the 24 amount to be borrowed to finance the project[.]; 25 (f) the projected number of full time equivalent jobs that would be 26 retained and that would be created if the request for financial assist- 27 ance or payments in lieu of taxes is granted, the projected timeframe 28 for the creation of new jobs, the estimated salary and fringe benefit 29 averages or ranges for categories of the jobs that would be retained or 30 created if the request for financial assistance or payments in lieu of 31 taxes is granted, and an estimate of the number of residents of the 32 economic development region as established pursuant to section two 33 hundred thirty of the economic development law or the labor market area 34 as defined by the agency, in which the project is located that would 35 fill such jobs. The labor market area defined by the agency for this 36 purpose may include no more than six contiguous counties in the state, 37 including the county in which the project is to be located; 38 (g) a statement to the effect that the provisions of subdivision one 39 of section eight hundred sixty-two of this [chapter] title will not be 40 violated if financial assistance or payments in lieu of taxes is 41 provided for the proposed project; 42 (h) a statement that the owner, occupant or operator receiving finan- 43 cial assistance or payments in lieu of taxes is in substantial compli- 44 ance with applicable local, state and federal tax, worker protection and 45 environmental laws, rules and regulations; and 46 (i) a statement acknowledging that the submission of any knowingly 47 false or knowingly misleading information may lead to the immediate 48 termination of any financial assistance or payments in lieu of taxes and 49 the reimbursement of an amount equal to all or part of any tax 50 exemptions claimed by reason of agency involvement in the project. 51 5. Each agency shall develop, and adopt by resolution, uniform crite- 52 ria for the evaluation and selection for each category of projects for 53 which financial assistance or payments in lieu of taxes will be 54 provided. At a minimum, the criteria shall require that, for each 55 project, the following must occur prior to the approval of the provision 56 of financial assistance or payments in lieu of taxes:
S. 4042 4 1 (a) an assessment by the agency of all material information included 2 in connection with the application for financial assistance or payments 3 in lieu of taxes, as necessary to afford a reasonable basis for the 4 decision by the agency to provide financial assistance or payments in 5 lieu of taxes for the project; 6 (b) a written cost-benefit analysis by the agency that identifies the 7 extent to which a project will create or retain permanent, private 8 sector jobs; the estimated value of any tax exemptions to be provided; 9 the amount of private sector investment generated or likely to be gener- 10 ated by the proposed project; the contribution of the project to the 11 state's renewable energy goals and emission reduction targets as set 12 forth in the state energy plan adopted pursuant to section 6-104 of the 13 energy law; the likelihood of accomplishing the proposed project in a 14 timely fashion; and the extent to which the proposed project will 15 provide additional sources of revenue for municipalities and school 16 districts; and any other public benefits that might occur as a result of 17 the project; 18 (c) a statement by the applicant that the project, as of the date of 19 the application, is in substantial compliance with all provisions of 20 this article including, but not limited to, the provisions of this 21 section and subdivision one of section eight hundred sixty-two of this 22 [chapter] title; and 23 (d) if the project involves the removal or abandonment of a facility 24 or plant within the state, notification by the agency to the chief exec- 25 utive officer or officers of the municipality or municipalities in which 26 the facility or plant was located. 27 6. Each agency shall develop a uniform agency project agreement that 28 sets forth terms and conditions under which financial assistance or 29 payments in lieu of taxes shall be provided. The uniform agency project 30 agreement shall be used by the agency and no financial assistance or 31 payments in lieu of taxes shall be provided in the absence of the 32 execution of such an agreement. The uniform agency project agreement 33 shall, at a minimum: 34 (a) describe the project and the financial assistance or payments in 35 lieu of taxes, including the amount and type, to be provided, and the 36 agency purpose to be achieved; 37 (b) require each project owner, occupant or operator receiving finan- 38 cial benefits or payments in lieu of taxes to provide annually a certi- 39 fied statement and documentation: (i) enumerating the full time equiv- 40 alent jobs retained and the full time equivalent jobs created as a 41 result of the financial assistance or payments in lieu of taxes, by 42 category, including full time equivalent independent contractors or 43 employees of independent contractors that work at the project location, 44 and (ii) indicating that the salary and fringe benefit averages or rang- 45 es for categories of jobs retained and jobs created that was provided in 46 the application is still accurate and if it is not still accurate, 47 providing a revised list of salary and fringe benefit averages or ranges 48 for categories of jobs retained and jobs created[.]; 49 (c) indicate the dates when PILOT payments are to be made and provide 50 an estimate of the amounts for each affected tax jurisdiction of any 51 payments in lieu of taxes that are included as part of the transaction, 52 or formula or formulas by which those amounts may be calculated. In lieu 53 of providing such information, a copy of an executed payment in lieu of 54 tax agreement that contains the same information may be attached to the 55 uniform agency project agreement;
S. 4042 5 1 [(e)] (d) provide for the suspension or discontinuance of financial 2 assistance or payments in lieu of taxes, or for the modification of any 3 payment in lieu of tax agreement to require increased payments, in 4 accordance with policies developed by the agency pursuant to section 5 eight hundred seventy-four of this title; 6 [(f)] (e) provide for the return of all or a part of the financial 7 assistance or payments in lieu of taxes provided for the project, 8 including all or part of the amount of any tax exemptions, which shall 9 be redistributed to the appropriate affected tax jurisdiction, as 10 provided for in policies developed by the agency pursuant to section 11 eight hundred seventy-four of this title, unless agreed to otherwise by 12 any local taxing jurisdiction or jurisdictions; and 13 [(g)] (f) provide that the owner, occupant or operator receiving 14 financial assistance or payments in lieu of taxes shall certify, under 15 penalty of perjury, that it is in substantial compliance with all local, 16 state and federal tax, worker protection and environmental laws, rules 17 and regulations. 18 § 4. The general municipal law is amended by adding a new section 19 859-c to read as follows: 20 § 859-c. Notice of agenda. A printed calendar of items to be heard, 21 which may be subject to later amendment, shall be made available to the 22 public and forwarded to the members and chairman of the industrial 23 development agency at least three days in advance of the meeting. Where 24 an industrial development agency maintains a website, the notice of 25 agenda shall also be posted on such industrial development agency's 26 website. 27 § 5. The general municipal law is amended by adding a new section 28 859-d to read as follows: 29 § 859-d. School board reporting. Every industrial development agency, 30 continued or created by this chapter or any other law of the state shall 31 submit to the local school board president and superintendent or boards 32 presidents and superintendents overlapping with an industrial develop- 33 ment agency, within ninety days after the end of its fiscal year, a copy 34 of the final report required by subdivision two of section twenty-eight 35 hundred of the public authorities law and the audits required by subdi- 36 vision two of section twenty-eight hundred two of the public authorities 37 law. 38 § 6. This act shall take effect immediately.