Establishes additional procedures to be followed by industrial development agencies prior to making development loans

1 Co-sponsor

• Liz Krueger

BILL NUMBER:S3393

Title of bill

An act to amend the general municipal law, in relation to industrial development agencies

Purpose

This bill establishes additional procedures to be followed by industrial development agencies prior to making industrial development loans.

Summary of provisions

The general municipal law is amended by adding a new section 859-c to provide additional procedures to be followed by an agency making industrial development loans which would include:

* Public purpose;

* Amount and type of assistance;

* Specific goals for job creation;

* Wage goals for jobs created;

* The financial obligation of the applicant if the goals in the agreement are not met;

* A commitment by the applicant to continue operations on any site where the assistance is used for at least five years;

* The name and address of the parent corporation, if any, of the applicant, and;

* A list of all prior development assistance provided to the applicant by other granting bodies in the preceding five years.

Additionally, the bill contains provisions related to which fiscal bodies shall approve a development agreement.

Justification

In certain instances, resources of the state which are distributed for economic development initiatives are implemented in a manner neither planned nor expected by the development agency issuing assistance. This legislation would put in place a safeguard to ensure that the intended purpose of the agreement, as consented to by both the applicant and the industrial development agency would remain intact.

Prior legislative history

2009-2010: S.1918 - Died in Local Government 2007-2008 S.4505 - Died in Local Government 2005-2006 S.705 - Died in Local Government 2005-2006: A.3234 - Died in Local Government 2003-2004: S.1768 - Died in Local Government 2003-2004: A.378 - Died in Local Government 2001-2002: S.523 - Died in Local Government 2001-2001: A.530 - Died in Local Government

1999-2000: S.7875 - Died in Local Government 1999-2000: A.9849 - Died in Local Government

Fiscal implications

Minimal.

Effective date

This act shall take effect on the first of November next succeeding the date on which it shall have become law.