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BILL NUMBER:A10086
Title of bill
An act to repeal section 2975-a of the public authori- ties law relating to the assessment and reimbursement of state expendi- tures by an industrial development agency or authority
Purpose or general idea of bill
To repeal section 2975-a of the Public Authorities Law relating to governmental costs from industrial develop- ment agencies
Summary of specific provisions
section 2975-a of the Public Authorities law that authorized the director of the Division of Budget to determine the amount owed by industrial development agencies in New York State for the recovery of State governmental costs would be repealed upon enact- ment of this legislation.
Justification
The 2009-2010 State Budget added Section 2975-a to Public Authorities Law authorizing the recovery of State governmental costs from. IDAs in an aggregate amount not to exceed five million in any given state fiscal year. The Division of Budget implemented this cost recovery by assessing a 4.727% flat fee on IDA revenues of all IDAs in the State that had over 55,000 in revenue and that submitted their 2008 data to the Public Authorities Reporting Information System (PARIS). When calculating the recovery billings the Division of Budget considered each IDAs revenues to include their total Payment in Lieu of Taxes (PILOTs). It is unreasonable to assess the cost recovery based on total PILOTs because the bulk of the monies received from PILOTs are passed through to the IDA's respective municipality and should not be considered as revenue.
Public Authorities Law section 2975-a states "on November first of each year, the director of the budget shall determine the amount owed under this section by each industrial development agency or authority" and goes on to say "the state treasurer shall impose and collect such assessments, which shall be paid no later than March thirty-first following the imposition of the assessments." IDAs however only received their cost recovery bills in February 2010, leaving insufficient time to review the bills and determine how they will be paid.
Public Authorities Law section 2976 already authorizes the State to collect a bond issuance charge from IDAs as a cost recovery measure. The cost recovery authorized in Public Authorities Law 2975-a is exces- sive and duplicative. IDAs were created by the State Legislature to promote the economic welfare and prosperity of the State's inhabitants. It was intended that IDAs would actively attract, encourage and develop economically sound commerce and industry for the purpose of preventing unemployment and economic deterioration. The effect of the new cost recovery assessment depletes IDA cash reserves and severely limits the ability of IDAs to continue in their economic development efforts. It is for these and other reasons stated by several local government officials and IDA's throughout the state that this section of public authorities law should be repealed with this legislation.
Prior legislative history
none
Fiscal implications
Approximately 55 Million that was billed to IDA's statewide would not be recovered by the State.
Effective date
immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.