STATE OF NEW YORK ________________________________________________________________________ 655 2025-2026 Regular Sessions IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sens. KRUEGER, BAILEY, LIU, PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the business corporation law and the public authorities law, in relation to enacting the "corporate accountability for tax expenditures act" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "corporate accountability for tax expenditures act". 3 § 2. The business corporation law is amended by adding a new article 4 14 to read as follows: 5 ARTICLE 14 6 CORPORATE ACCOUNTABILITY FOR TAX EXPENDITURES 7 Section 1401. Definitions. 8 1402. Unified economic development budget. 9 1403. Standardized applications for state development assist- 10 ance. 11 1404. State development assistance disclosure. 12 1405. Recapture. 13 § 1401. Definitions. 14 As used in this article: 15 (a) "Base years" means the first two complete calendar years following 16 the effective date of a recipient receiving development assistance. 17 (b) "Date of assistance" means the commencement date of the assistance 18 agreement, which date triggers the period during which the recipient is 19 obligated to create or retain jobs and continue operations at the 20 specific project site. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00909-01-5
S. 655 2 1 (c) "Default" means that a recipient has not achieved its job 2 creation, job retention, or wage or benefit goals, as applicable, during 3 the prescribed period therefor. 4 (d) "Department" means, unless otherwise noted, the department of 5 taxation and finance or any successor agency. 6 (e) "Development assistance" means (1) tax credits and tax exemptions 7 (other than given under tax increment financing) given as an incentive 8 to a recipient business organization pursuant to an initial certif- 9 ication or an initial designation made by the department under article 10 eighteen-A or eighteen-B of the general municipal law; 11 (2) all successor and subsequent programs and tax credits designed to 12 promote large business relocations and expansions. "Development assist- 13 ance" does not include tax increment financing, assistance provided by 14 industrial development agencies under article eighteen-A or eighteen-B 15 of the general municipal law pursuant to local ordinance, participation 16 loans, or financial transactions through statutorily authorized finan- 17 cial intermediaries in support of small business loans and investments 18 or given in connection with the development of affordable housing. 19 (f) "Development assistance agreement" means any agreement executed by 20 the state granting body and the recipient setting forth the terms and 21 conditions of development assistance to be provided to the recipient 22 consistent with the final application for development assistance, 23 including but not limited to the date of assistance, submitted to and 24 approved by the state granting body. 25 (g) "Full-time, permanent job" means a job in which the new employee 26 works for the recipient at a rate of at least thirty-five hours per 27 week. 28 (h) "New employee" means a full-time, permanent employee who repres- 29 ents a net increase in the number of the recipient's employees state- 30 wide. "New employee" includes an employee who previously filled a new 31 employee position with the recipient who was rehired or called back from 32 a layoff that occurs during or following the base years. 33 The term "new employee" does not include any of the following: 34 (1) An employee of the recipient who performs a job that was previous- 35 ly performed by another employee in this state, if that job existed in 36 this state for at least six months before hiring the employee. 37 (2) A child, grandchild, parent, or spouse, other than a spouse who is 38 legally separated from the individual, of any individual who has a 39 direct or indirect ownership interest of at least five percent in the 40 profits, capital, or value of any member of the recipient. 41 (i) "Part-time job" means a job in which the new employee works for 42 the recipient at a rate of less than thirty-five hours per week. 43 (j) "Recipient" means any business that receives economic development 44 assistance. A business is any corporation, limited liability company, 45 partnership, joint venture, association, sole proprietorship, or other 46 legally recognized entity. 47 (k) "Retained employee" means any employee defined as having a full- 48 time or full-time equivalent job preserved at a specific facility or 49 site, the continuance of which is threatened by a specific and demon- 50 strable threat, which shall be specified in the application for develop- 51 ment assistance. 52 (l) "Specific project site" means that distinct operational unit to 53 which any development assistance is applied. 54 (m) "State granting body" means the department, any other state 55 department or state agency that provides development assistance that has
S. 655 3 1 reporting requirements under this article, and any successor agencies to 2 any of the preceding. 3 (n) "Temporary job" means a job in which the new employee is hired for 4 a specific duration of time or season. 5 (o) "Value of assistance" means the face value of any form of develop- 6 ment assistance. 7 § 1402. Unified economic development budget. 8 (a) For each state fiscal year ending on or after June thirtieth, two 9 thousand twenty-six, the department shall submit an annual unified 10 economic development budget to the governor, senate and assembly. The 11 unified economic development budget shall be due within three months 12 after the end of the fiscal year, and shall present all types of devel- 13 opment assistance granted during the prior fiscal year, including: 14 (1) The aggregate amount of uncollected or diverted state tax revenues 15 resulting from each type of development assistance provided pursuant to 16 law, as reported to the department on tax returns filed during the 17 fiscal year. 18 (2) All state development assistance. 19 (b) All data contained in the unified economic development budget 20 presented to the governor, senate and assembly shall be fully subject to 21 the freedom of information act. 22 (c) The department shall submit a report of the amounts in subpara- 23 graph one of paragraph (a) of this section to the department, which may 24 append such report to the unified economic development budget rather 25 than separately reporting such amounts. 26 § 1403. Standardized applications for state development assistance. 27 (a) All final applications submitted to the department or any other 28 state granting body requesting development assistance shall contain, at 29 a minimum: 30 (1) An application tracking number that is specific to both the state 31 granting agency and to each application. 32 (2) The office mailing address, office telephone number, and chief 33 officer of the granting body. 34 (3) The office mailing address, telephone number, and the name of the 35 chief officer of the applicant or authorized designee for the specific 36 project site for which development assistance is requested. 37 (4) The applicant's total number of employees at the specific project 38 site on the date that the application is submitted to the state granting 39 body, including the number of full-time, permanent jobs, the number of 40 part-time jobs, and the number of temporary jobs. 41 (5) The type of development assistance and value of assistance being 42 requested. 43 (6) The number of jobs to be created and retained or both created and 44 retained by the applicant as a result of the development assistance, 45 including the number of full-time, permanent jobs, the number of part- 46 time jobs, and the number of temporary jobs. 47 (7) A detailed list of the occupation or job classifications and 48 number of new employees or retained employees to be hired in full-time, 49 permanent jobs, a schedule of anticipated starting dates of the new 50 hires and the anticipated average wage by occupation or job classifica- 51 tion and total payroll to be created as a result of the development 52 assistance. 53 (8) A list of all other forms of development assistance that the 54 applicant is requesting for the specific project site and the name of 55 each state granting body from which that development assistance is being 56 requested.
S. 655 4 1 (9) A narrative, if necessary, describing why the development assist- 2 ance is needed and how the applicant's use of the development assistance 3 may reduce employment at any site in New York. 4 (10) A certification by the chief officer of the applicant or the 5 chief officer's authorized designee that the information contained in 6 the application submitted to the granting body contains no knowing 7 misrepresentation of material facts upon which eligibility for develop- 8 ment assistance is based. 9 (b) Every state granting body either shall complete, or shall require 10 the applicant to complete, an application form that meets the minimum 11 requirements as prescribed in this section each time an applicant 12 applies for development assistance covered by this article. 13 (c) The department shall have the discretion to modify any standard- 14 ized application for state development assistance required under para- 15 graph (a) of this section for any grants that are not given as an incen- 16 tive to a recipient business organization. 17 § 1404. State development assistance disclosure. 18 (a) Beginning February first, two thousand twenty-seven and each year 19 thereafter, every state granting body shall submit to the department 20 copies of all development assistance agreements that it approved in the 21 prior calendar year. 22 (b) For each development assistance agreement for which the date of 23 assistance has occurred in the prior calendar year, each recipient shall 24 submit to the department a progress report that shall include, but not 25 be limited to, the following: 26 (1) The application tracking number. 27 (2) The office mailing address, telephone number, and the name of the 28 chief officer of the granting body. 29 (3) The office mailing address, telephone number, and the name of the 30 chief officer of the applicant or authorized designee for the specific 31 project site for which the development assistance was approved by the 32 state granting body. 33 (4) The type of development assistance program and value of assistance 34 that was approved by the state granting body. 35 (5) The applicant's total number of employees at the specific project 36 site on the date that the application was submitted to the state grant- 37 ing body and the applicant's total number of employees at the specific 38 project site on the date of the report, including the number of full- 39 time, permanent jobs, the number of part-time jobs, and the number of 40 temporary jobs, and a computation of the gain or loss of jobs in each 41 category. 42 (6) The number of new employees and retained employees the applicant 43 stated in its development assistance agreement, if any, if not, then in 44 its application, would be created by the development assistance broken 45 down by full-time, permanent, part-time, and temporary. 46 (7) A sworn declaration of whether the recipient is in compliance with 47 the development assistance agreement. 48 (8) A detailed list of the occupation or job classifications and 49 number of new employees or retained employees to be hired in full-time, 50 permanent jobs, a schedule of anticipated starting dates of the new 51 hires and the actual average wage by occupation or job classification 52 and total payroll to be created as a result of the development assist- 53 ance. 54 (9) A narrative, if necessary, describing how the recipient's use of 55 the development assistance during the reporting year has reduced employ- 56 ment at any site in New York.
S. 655 5 1 (10) A certification by the chief officer of the applicant or the 2 chief officer's authorized designee that the information in the progress 3 report contains no knowing misrepresentation of material facts upon 4 which eligibility for development assistance is based. 5 (c) The state granting body, or a successor agency, shall have full 6 authority to verify information contained in the recipient's progress 7 report, including the authority to inspect the specific project site and 8 inspect the records of the recipient that are subject to the development 9 assistance agreement. 10 (d) By June first, two thousand twenty-seven and by June first of each 11 year thereafter, the department shall compile and publish all data in 12 all of the progress reports in both written and electronic form. 13 (e) If a recipient of development assistance fails to comply with 14 paragraph (b) of this section, the department shall, within twenty work- 15 ing days after the reporting submittal deadlines set forth in such para- 16 graph (b), suspend within thirty-three working days any current develop- 17 ment assistance to such recipient under its control, and shall be 18 prohibited from completing any current or providing any future develop- 19 ment assistance until it receives proof that such recipient has come 20 into compliance with the requirements of paragraph (b) of this section. 21 (f) The department shall have the discretion to modify the information 22 required in the progress report required under paragraph (b) of this 23 section consistent with the disclosure purpose of this section for any 24 grants that are not given as an incentive to a recipient business organ- 25 ization. 26 § 1405. Recapture. 27 (a) All development assistance agreements shall contain, at a minimum, 28 the following recapture provisions: 29 (1) The recipient must (i) make the level of capital investment in the 30 economic development project specified in the development assistance 31 agreement; (ii) create or retain, or both, the requisite number of jobs, 32 paying not less than specified wages for the created and retained jobs, 33 within and for the duration of the time period specified in the develop- 34 ment assistance programs and the development assistance agreement. 35 (2) If the recipient fails to create or retain the requisite number of 36 jobs within and for the time period specified, in the development 37 assistance programs and the development assistance agreement, the recip- 38 ient shall be deemed to no longer qualify for the state economic assist- 39 ance and the applicable recapture provisions shall take effect. 40 (3) If the recipient receives state economic assistance in the form of 41 an empire zone designation pursuant to article eighteen-B of the general 42 municipal law or an industrial development zone designation pursuant to 43 article eighteen-A of the general municipal law and the recipient fails 44 to create or retain the requisite number of jobs, as determined by the 45 development assistance agreement within the requisite period of time, 46 the recipient shall be required to pay to the state the full amount of 47 the state tax exemption that it received as a result of such desig- 48 nation. 49 (4) If the recipient receives a grant or loan pursuant to an empire 50 zone designation pursuant to article eighteen-B of the general municipal 51 law or an industrial development zone designation pursuant to article 52 eighteen-A of the general municipal law and the recipient fails to 53 create or retain the requisite number of jobs for the requisite time 54 period, as provided in the development assistance agreement, the recipi- 55 ent shall be required to repay to the state a pro rata amount of the 56 grant; that amount shall reflect the percentage of the deficiency
S. 655 6 1 between the requisite number of jobs to be created or retained by the 2 recipient and the actual number of such jobs in existence as of the date 3 the department determines the recipient is in breach of the job creation 4 or retention covenants contained in the development assistance agree- 5 ment. If the recipient of development assistance under such designations 6 ceases operations at the specific project site during a five year period 7 commencing on the date of assistance, the recipient shall be required to 8 repay the entire amount of the grant or to accelerate repayment of the 9 loan back to the state. 10 (5) If the recipient receives a tax credit under article eighteen-A or 11 eighteen-B of the general municipal law, the development assistance 12 agreement shall provide that (i) if the number of new or retained 13 employees falls below the requisite number set forth in the development 14 assistance agreement, the allowance of the credit shall be automatically 15 suspended until the number of new and retained employees equals or 16 exceeds the requisite number in the development assistance agreement; 17 (ii) if the recipient discontinues operations at the specific project 18 site during the first five years of the term of the development assist- 19 ance agreement, the recipient shall forfeit all credits taken by the 20 recipient during such five year period; and (iii) in the event of a 21 revocation or suspension of the credit, the department shall initiate 22 proceedings against the recipient to recover wrongfully exempted state 23 income taxes and the recipient shall promptly repay to the department 24 any wrongfully exempted state income taxes. The forfeited amount of 25 credits shall be deemed assessed on the date the department initiates 26 proceedings against such recipient and the recipient shall promptly 27 repay to the department any wrongfully exempted state income taxes. 28 (b) The commissioner of taxation and finance may elect to waive 29 enforcement of any contractual provision arising out of the development 30 assistance agreement required by this article based on a finding that 31 the waiver is necessary to avert an imminent and demonstrable hardship 32 to the recipient that may result in such recipient's insolvency or 33 discharge of workers. If a waiver is granted, the recipient shall agree 34 to a contractual modification, including recapture provisions, to the 35 development assistance agreement. The existence of any waiver granted 36 pursuant to paragraph (c) of this section, the date of the granting of 37 such waiver, and a brief summary of the reasons supporting the granting 38 of such waiver shall be disclosed consistent with the provisions of this 39 section. 40 (c) Beginning June first, two thousand twenty-six, the department 41 shall annually compile a report on the outcomes and effectiveness of 42 recapture provisions by program, including but not limited to: (i) the 43 total number of companies that receive development assistance as defined 44 in this article; (ii) the total number of recipients in violation of 45 development agreements with the department; (iii) the total number of 46 completed recapture efforts; (iv) the total number of recapture efforts 47 initiated; and (v) the number of waivers granted. Such report shall be 48 disclosed consistent with the provisions of section fourteen hundred 49 four of this article. 50 § 3. The public authorities law is amended by adding a new article 51 10-E to read as follows: 52 ARTICLE 10-E 53 CORPORATE ACCOUNTABILITY FOR TAX EXPENDITURES 54 Section 3980. Definitions. 55 3981. Unified economic development budget.
S. 655 7 1 3982. Standardized applications for state development assist- 2 ance. 3 3983. State development assistance disclosure. 4 3984. Recapture. 5 § 3980. Definitions. As used in this article: 6 1. "Base years" means the first two complete calendar years following 7 the effective date of a recipient receiving development assistance. 8 2. "Date of assistance" means the commencement date of the assistance 9 agreement, which date triggers the period during which the recipient is 10 obligated to create or retain jobs and continue operations at the 11 specific project site. 12 3. "Default" means that a recipient has not achieved its job creation, 13 job retention, or wage or benefit goals, as applicable, during the 14 prescribed period therefor. 15 4. "Department" means, unless otherwise noted, the department of taxa- 16 tion and finance or any successor agency. 17 5. "Development assistance" means (a) tax credits and tax exemptions 18 (other than given under tax increment financing) given as an incentive 19 to a recipient public authority pursuant to an initial certification or 20 an initial designation made by the department under article eighteen-A 21 or eighteen-B of the general municipal law; 22 (b) all successor and subsequent programs and tax credits designed to 23 promote large business relocations and expansions. "Development assist- 24 ance" does not include tax increment financing, assistance provided by 25 industrial development agencies under article eighteen-A or eighteen-B 26 of the general municipal law pursuant to local ordinance, participation 27 loans, or financial transactions through statutorily authorized finan- 28 cial intermediaries in support of small business loans and investments 29 or given in connection with the development of affordable housing. 30 6. "Development assistance agreement" means any agreement executed by 31 the state granting body and the recipient setting forth the terms and 32 conditions of development assistance to be provided to the recipient 33 consistent with the final application for development assistance, 34 including but not limited to the date of assistance, submitted to and 35 approved by the state granting body. 36 7. "Full-time, permanent job" means a job in which the new employee 37 works for the recipient at a rate of at least thirty-five hours per 38 week. 39 8. "New employee" means a full-time, permanent employee who repres- 40 ents a net increase in the number of the recipient's employees state- 41 wide. "New employee" includes an employee who previously filled a new 42 employee position with the recipient who was rehired or called back from 43 a layoff that occurs during or following the base years. 44 The term "new employee" does not include any of the following: 45 (a) An employee of the recipient who performs a job that was previous- 46 ly performed by another employee in this state, if that job existed in 47 this state for at least six months before hiring the employee. 48 (b) A child, grandchild, parent, or spouse, other than a spouse who is 49 legally separated from the individual, of any individual who has a 50 direct or indirect ownership interest of at least five percent in the 51 profits, capital, or value of any member of the recipient. 52 9. "Part-time job" means a job in which the new employee works for the 53 recipient at a rate of less than thirty-five hours per week. 54 10. "Recipient" means any public authority created pursuant to this 55 chapter that receives economic development assistance or other legally 56 recognized entity of such a public authority.
S. 655 8 1 11. "Retained employee" means any employee defined as having a full- 2 time or full-time equivalent job preserved at a specific facility or 3 site, the continuance of which is threatened by a specific and demon- 4 strable threat, which shall be specified in the application for develop- 5 ment assistance. 6 12. "Specific project site" means that distinct operational unit to 7 which any development assistance is applied. 8 13. "State granting body" means the department, any other state 9 department or state agency that provides development assistance that has 10 reporting requirements under this article, and any successor agencies to 11 any of the preceding. 12 14. "Temporary job" means a job in which the new employee is hired for 13 a specific duration of time or season. 14 15. "Value of assistance" means the face value of any form of develop- 15 ment assistance. 16 § 3981. Unified economic development budget. 1. For each state fiscal 17 year ending on or after June thirtieth, two thousand twenty-six the 18 department shall submit an annual unified economic development budget to 19 the governor, senate and assembly. The unified economic development 20 budget shall be due within three months after the end of the fiscal 21 year, and shall present all types of development assistance granted 22 during the prior fiscal year, including: 23 (a) The aggregate amount of uncollected or diverted state tax revenues 24 resulting from each type of development assistance provided pursuant to 25 law, as reported to the department on tax returns filed during the 26 fiscal year. 27 (b) All state development assistance. 28 2. All data contained in the unified economic development budget 29 presented to the governor, senate and assembly shall be fully subject to 30 the freedom of information act. 31 3. The department shall submit a report of the amounts in paragraph 32 (a) of subdivision one of this section to the department, which may 33 append such report to the unified economic development budget rather 34 than separately reporting such amounts. 35 § 3982. Standardized applications for state development assistance. 36 1. All final applications submitted to the department or any other state 37 granting body requesting development assistance shall contain, at a 38 minimum: 39 (a) An application tracking number that is specific to both the state 40 granting agency and to each application. 41 (b) The office mailing address, office telephone number, and chief 42 officer of the granting body. 43 (c) The office mailing address, telephone number, and the name of the 44 chief officer of the applicant or authorized designee for the specific 45 project site for which development assistance is requested. 46 (d) The applicant's total number of employees at the specific project 47 site on the date that the application is submitted to the state granting 48 body, including the number of full-time, permanent jobs, the number of 49 part-time jobs, and the number of temporary jobs. 50 (e) The type of development assistance and value of assistance being 51 requested. 52 (f) The number of jobs to be created and retained or both created and 53 retained by the applicant as a result of the development assistance, 54 including the number of full-time, permanent jobs, the number of part- 55 time jobs, and the number of temporary jobs.
S. 655 9 1 (g) A detailed list of the occupation or job classifications and 2 number of new employees or retained employees to be hired in full-time, 3 permanent jobs, a schedule of anticipated starting dates of the new 4 hires and the anticipated average wage by occupation or job classifica- 5 tion and total payroll to be created as a result of the development 6 assistance. 7 (h) A list of all other forms of development assistance that the 8 applicant is requesting for the specific project site and the name of 9 each state granting body from which that development assistance is being 10 requested. 11 (i) A narrative, if necessary, describing why the development assist- 12 ance is needed and how the applicant's use of the development assistance 13 may reduce employment at any site in New York. 14 (j) A certification by the chief officer of the applicant or the chief 15 officer's authorized designee that the information contained in the 16 application submitted to the granting body contains no knowing misrepre- 17 sentation of material facts upon which eligibility for development 18 assistance is based. 19 2. Every state granting body either shall complete, or shall require 20 the applicant to complete, an application form that meets the minimum 21 requirements as prescribed in this section each time an applicant 22 applies for development assistance covered by this article. 23 3. The department shall have the discretion to modify any standardized 24 application for state development assistance required under subdivision 25 one of this section for any grants that are not given as an incentive to 26 a recipient public authority. 27 § 3983. State development assistance disclosure. 1. Beginning Febru- 28 ary first, two thousand twenty-seven and each year thereafter, every 29 state granting body shall submit to the department copies of all devel- 30 opment assistance agreements that it approved in the prior calendar 31 year. 32 2. For each development assistance agreement for which the date of 33 assistance has occurred in the prior calendar year, each recipient shall 34 submit to the department a progress report that shall include, but not 35 be limited to, the following: 36 (a) The application tracking number. 37 (b) The office mailing address, telephone number, and the name of the 38 chief officer of the granting body. 39 (c) The office mailing address, telephone number, and the name of the 40 chief officer of the applicant or authorized designee for the specific 41 project site for which the development assistance was approved by the 42 state granting body. 43 (d) The type of development assistance program and value of assistance 44 that was approved by the state granting body. 45 (e) The applicant's total number of employees at the specific project 46 site on the date that the application was submitted to the state grant- 47 ing body and the applicant's total number of employees at the specific 48 project site on the date of the report, including the number of full- 49 time, permanent jobs, the number of part-time jobs, and the number of 50 temporary jobs, and a computation of the gain or loss of jobs in each 51 category. 52 (f) The number of new employees and retained employees the applicant 53 stated in its development assistance agreement, if any, if not, then in 54 its application, would be created by the development assistance broken 55 down by full-time, permanent, part-time, and temporary.
S. 655 10 1 (g) A sworn declaration of whether the recipient is in compliance with 2 the development assistance agreement. 3 (h) A detailed list of the occupation or job classifications and 4 number of new employees or retained employees to be hired in full-time, 5 permanent jobs, a schedule of anticipated starting dates of the new 6 hires and the actual average wage by occupation or job classification 7 and total payroll to be created as a result of the development assist- 8 ance. 9 (i) A narrative, if necessary, describing how the recipient's use of 10 the development assistance during the reporting year has reduced employ- 11 ment at any site in New York. 12 (j) A certification by the chief officer of the applicant or the chief 13 officer's authorized designee that the information in the progress 14 report contains no knowing misrepresentation of material facts upon 15 which eligibility for development assistance is based. 16 3. The state granting body, or a successor agency, shall have full 17 authority to verify information contained in the recipient's progress 18 report, including the authority to inspect the specific project site and 19 inspect the records of the recipient that are subject to the development 20 assistance agreement. 21 4. By June first, two thousand twenty-seven and by June first of each 22 year thereafter, the department shall compile and publish all data in 23 all of the progress reports in both written and electronic form. 24 5. If a recipient of development assistance fails to comply with 25 subdivision two of this section, the department shall, within twenty 26 working days after the reporting submittal deadlines set forth in such 27 subdivision two, suspend within thirty-three working days any current 28 development assistance to such recipient under its control, and shall be 29 prohibited from completing any current or providing any future develop- 30 ment assistance until it receives proof that such recipient has come 31 into compliance with the requirements of subdivision two of this 32 section. 33 6. The department shall have the discretion to modify the information 34 required in the progress report required under subdivision two of this 35 section consistent with the disclosure purpose of this section for any 36 grants that are not given as an incentive to a recipient public authori- 37 ty. 38 § 3984. Recapture. 1. All development assistance agreements shall 39 contain, at a minimum, the following recapture provisions: 40 (a) The recipient must (i) make the level of capital investment in the 41 economic development project specified in the development assistance 42 agreement; (ii) create or retain, or both, the requisite number of jobs, 43 paying not less than specified wages for the created and retained jobs, 44 within and for the duration of the time period specified in the develop- 45 ment assistance programs and the development assistance agreement. 46 (b) If the recipient fails to create or retain the requisite number of 47 jobs within and for the time period specified, in the development 48 assistance programs and the development assistance agreement, the recip- 49 ient shall be deemed to no longer qualify for the state economic assist- 50 ance and the applicable recapture provisions shall take effect. 51 (c) If the recipient receives state economic assistance in the form of 52 an empire zone designation pursuant to article eighteen-B of the general 53 municipal law or an industrial development zone designation pursuant to 54 article eighteen-A of the general municipal law and the recipient fails 55 to create or retain the requisite number of jobs, as determined by the 56 development assistance agreement within the requisite period of time,
S. 655 11 1 the recipient shall be required to pay to the state the full amount of 2 the state tax exemption that it received as a result of such desig- 3 nation. 4 (d) If the recipient receives a grant or loan pursuant to an empire 5 zone designation pursuant to article eighteen-B of the general municipal 6 law or an industrial development zone designation pursuant to article 7 eighteen-A of the general municipal law and the recipient fails to 8 create or retain the requisite number of jobs for the requisite time 9 period, as provided in the development assistance agreement, the recipi- 10 ent shall be required to repay to the state a pro rata amount of the 11 grant; that amount shall reflect the percentage of the deficiency 12 between the requisite number of jobs to be created or retained by the 13 recipient and the actual number of such jobs in existence as of the date 14 the department determines the recipient is in breach of the job creation 15 or retention covenants contained in the development assistance agree- 16 ment. If the recipient of development assistance under such designations 17 ceases operations at the specific project site during a five year period 18 commencing on the date of assistance, the recipient shall be required to 19 repay the entire amount of the grant or to accelerate repayment of the 20 loan back to the state. 21 (e) If the recipient receives a tax credit under article eighteen-A or 22 eighteen-B of the general municipal law, the development assistance 23 agreement shall provide that (i) if the number of new or retained 24 employees falls below the requisite number set forth in the development 25 assistance agreement, the allowance of the credit shall be automatically 26 suspended until the number of new and retained employees equals or 27 exceeds the requisite number in the development assistance agreement; 28 (ii) if the recipient discontinues operations at the specific project 29 site during the first five years of the term of the development assist- 30 ance agreement, the recipient shall forfeit all credits taken by the 31 recipient during such five year period; and (iii) in the event of a 32 revocation or suspension of the credit, the department shall initiate 33 proceedings against the recipient to recover wrongfully exempted state 34 income taxes and the recipient shall promptly repay to the department 35 any wrongfully exempted state income taxes. The forfeited amount of 36 credits shall be deemed assessed on the date the department initiates 37 proceedings against such recipient and the recipient shall promptly 38 repay to the department any wrongfully exempted state income taxes. 39 2. The commissioner of taxation and finance may elect to waive 40 enforcement of any contractual provision arising out of the development 41 assistance agreement required by this article based on a finding that 42 the waiver is necessary to avert an imminent and demonstrable hardship 43 to the recipient that may result in such recipient's insolvency or 44 discharge of workers. If a waiver is granted, the recipient shall agree 45 to a contractual modification, including recapture provisions, to the 46 development assistance agreement. The existence of any waiver granted 47 pursuant to subdivision three of this section, the date of the granting 48 of such waiver, and a brief summary of the reasons supporting the grant- 49 ing of such waiver shall be disclosed consistent with the provisions of 50 this section. 51 3. Beginning June first, two thousand twenty-six, the department shall 52 annually compile a report on the outcomes and effectiveness of recapture 53 provisions by program, including but not limited to: (a) the total 54 number of authorities that receive development assistance as defined in 55 this article; (b) the total number of recipients in violation of devel- 56 opment agreements with the department; (c) the total number of completed
S. 655 12 1 recapture efforts; (d) the total number of recapture efforts initiated; 2 and (e) the number of waivers granted. Such report shall be disclosed 3 consistent with the provisions of section thirty-nine hundred eighty- 4 three of this article. 5 § 4. This act shall take effect on the one hundred twentieth day after 6 it shall have become a law and shall apply to contracts and agreements 7 entered into on or after such effective date. Effective immediately, 8 the addition, amendment and/or repeal of any rule or regulation neces- 9 sary for the implementation of this act on its effective date are 10 authorized to be made and completed on or before such effective date.