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History
- Print number 2898b
- Amend (t) and recommit to local government
- Referred to local government
- Print number 2898a
- Amend and recommit to local government
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Eliminates the twenty million dollar cap on civic facilities authorized to be financed by industrial development agencies and authorities
In Assembly Committee · Local Governments · Sponsor Joseph Morelle
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2898B
Title of bill
An act to amend the general municipal law and the public authorities law, in relation to authorizing financing assistance for civic facilities by industrial development agencies, and in relation to the tax exemption status of industrial development agencies; to amend chapter 66 of the laws of 1994, amending the public health law, the general municipal law and the insurance law relating to the financing of life care communities, in relation to the application deadline for eligibility for assistance from an industrial development agency; and providing for the repeal of certain provisions upon the expiration thereof
Purpose of bill
This legislation would provide a 1 year reauthorization of certain provisions that govern the ability of not-for-profit entities and economic development projects to access low-cost IDA financing. This legislation recognizes the successful past performance of IDA financing for important not-for-profit projects and makes extends certain provisions, including reforms and restrictions that were enacted on a trial basis many years ago.
Read the full memo (636 words)
Specifically, this legislation will temporarily reauthorize the availability of low-cost IDA financing for projects constructed by not-for-profit entities for the benefit of the local government jurisdiction they serve. IDAs had been authorized to finance the construction of most types of not-for-profit projects since 1986. However, this authorization had always contained sunset clauses and has only been granted for a few years at a time. In 2008 the legislature did not reauthorize this IDA financing.
For the past twenty years not-for-profits have relied on IDA financing to build or expand many worthy projects like those for CP Centers, group homes for the mentally disabled, libraries, proprietary day schools, YMCAs, university non-housing projects, non-medical service hospital projects - etc.
Additionally, this legislation will remove the trial project cap ($20 million) for a small subset of not-for-profit projects first enacted in 1997 to make it consistent with current law as applied to all other not-for-profit projects. Since 1986, the majority of not-for-profit projects have been eligible for IDA financing in unlimited amounts.
Specific prohibitions on certain types of not-for-profit financing were removed in 1997 and a trial cap was instituted. There is no longer any justification to maintain the trial cap only on this small subset of not-for-profit projects (i.e. higher educational housing, medical facilities, and senior living facilities.)
Summary of specific provisions
Section 1 amends section 874 of the general municipal law requiring IDAs to review their uniform tax exemption policy at least once every five years and .require such. This section also provides for review of procedures for deviation for such uniform policies and spells out the manner by which IDAs may offer sales tax exemptions.
Section 2 of the bill amend the general municipal law and the public authorities law to make permanent both the law authorizing financing assistance for "civic facilities" by all IDAs and the restrictions on funds of IDAs.
Section 3 increases the notice from 10 to 30 days that IDAs are required to provide for public hearings that are mandated whenever an IDA provides any financial assistance of more than $100,000.
Sections 4 and 5 amend Section 862 of the General municipal law, as well as section 2305 of the public authorities law, outlining what types of projects are eligible for IDA financing.
Section 6 requires IDAs to submit reports to the department of economic development; the director of the budget, and the respective fiscal houses in the state legislatures.
Sections 7 and 8 create a sunset date of July 1, 2011.
Legislative history
New bill.
Fiscal implications
A positive fiscal benefit to the State will be realized by the ability for project that are otherwise on hold to be built through job creation.
Effective date
This act shall take effect immediately; provided however that sections one through six shall expire and be deemed repealed on July 1, 2011.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.