Relates to the function of industrial development agencies

* limits the financing of recreational facilities;

* dissolves IDAs without outstanding debt five years after their creation;

* establishes requirements for board membership to include local governments, school boards, organized labor and environmental organizations;

* prohibits board members from including individuals with IDA business ties or ownership interests;

* requires board members to attend at least 10 percent of all hearings or forfeit their office;

* requires payment in lieu of taxes (PILOT) agreements to be published, posted and available for public inspection;

* requires IDAs to maintain a website;

* requires IDAs to provide a "project report" to State Comptroller including: the total amount and type of financial assistance; forgone tax revenue; total projects and requires that information be posted and available for public inspection;

* requires IDAs to provide assistance of less than $100,000 to at least three projects a year unless there are no such requests or no projects are funded that year;

* requires IDAs to establish criteria for project selection including requiring reasonable job creation and retention goal;

* requires IDA hearings to be attended by no less than two board members;

* requires project applicants to complete an application form, including projected costs and financial assistance, the number of jobs to be created and a statement as to whether or not officers or major shareholders have been found to have violated any federal, state, or local law, rule or regulation related to environmental protection,

taxation, financial assistance, protection of workers or minority and women-owned business enterprises;

* requires project applicant to complete a community impact report to include an analysis of transportation and existing on site infrastructure;

* requires IDAs to suspend financial assistance to recipients found to have committed a substantial violation of any federal, state, or local law, rule or regulation related to environmental protection, taxation, financial assistance, protection of workers or minority and women owned business enterprises. IDAs found to have substantial violations will be required to repay assistance with interest, and will be prohibited from entering into a financial assistance agreement with any other state or local agency until repayment is made;

* authorizes the Attorney General to commence an action to recover financial assistance;

* requires the payment of prevailing wages for any construction or building renovation work;

* requires all employees to be paid no less than the median hourly wage for "all occupations" for the duration of the financial assistance and for five years thereafter;

* requires the Commissioner of Labor to notify the IDA promptly after a declaration that a violation has been committed by a recipient and requires the IDA to immediately suspend financial assistance and seek repayment of any assistance given;

* requires successor contractors, in cases where a previous contract has been terminated, to retain all services employees for ninety days after the date of contract termination and prohibits the discharge of such employees without cause;

* establishes an IDA complaint process involving the IDA and the Department of Economic Development;

* establishes a compliance schedule for green building standards based on the building cost and the type of construction work to be performed;

* authorizes the State Comptroller to investigate pirating complaints and requires repayment of assistance upon a determination that as complaint is valid;

* requires the approval of the Public Authorities Control Board for projects over $100 million;

* prohibits IDA funds from being used for projects not on a brownfield, served by existing public sewer and water, or on lands designated as suitable for conservation, unless the agency can demonstrate that there is no available alternative;

* requires hearing notice on the development of PILOT policy by an IDA to be provided to members of the local governing body, with copies of the adopted policy to be sent to the chief executive officer and members of the governing body and posted on the IDAs website;

* requires deviations from uniform PILOT policy to be approved in writing by the affected governments;

* provides that whenever an agency has $100,000 or less in outstanding debt it shall exist only to pay debt service on the bonds;

* establishes a uniform procedure for the dissolution and merger of sub-county IDAs;

* makes brownfield projects eligible for low cost power programs and waives bond issuance charges on those projects; and,

* consolidates the sub-county IDAs of Erie County.

Justification

There are 116 IDAs throughout the State that provide almost $400 million in net tax exemptions each year. They are an important economic development tool to promote job creation and business retention. In return for increased economic activity and job growth, IDAs provide exemptions from local, county and school taxes. IDAs also issue low-interest bonds, called industrial development revenue bonds, which allow companies to borrow money at low cost.

IDAs should be supporting responsible businesses that will deliver on their promises to provide good jobs and services to New Yorkers. Since IDAs give businesses significant local tax breaks, local communities should get the promised benefits in exchange for sacrificing this much needed revenue. This bill will greatly increase the accountability of IDAs to the taxpayer's and municipalities for whose benefit they are created. It will serve to ensure a greater degree of uniformity in the application process, more careful analysis and deliberation in the decision-making process and enhanced monitorship once IDA benefits are conferred. This bill would ensure that IDAs operate efficiently and in the public interest.

Fiscal implications

None to the State.

Effective date

This act shall take effect on the nineteenth day after it shall become law.