Requires businesses which receive economic development incentives to disclose on a continuing basis the conditions thereof and compliance therewith

BILL NUMBER:S6586

Title of bill

An act to amend the economic development law, in relation to requiring recipients of economic development assistance to fully disclose the prerequisites for such assistance and their compliance therewith

Purpose

This legislation requires businesses which receive economic development incentives to disclose on a containing basis the conditions thereof and compliance therewith.

Summary of provisions

Section One - defines "Economic Development Assistance" as tax credits and tax exemptions given as incentives to a recipient pursuant to a development assistance agreement, any other program or incentive intended to promote and ensure a business relocation or expansion.

Section One - defines "Economic Development Assistance Agreement" is defined as any agreement executed by the state, or a state or municipal body and a recipient setting forth all terms conditions and understandings thereof of the provisions of economic development assistance.

Section One defines - "Recipient" is defined as any business entity that receives economic development assistance pursuant to an economic development assistance agreement.

Section One - states every recipient of the above mentioned assistance will upon request of any person, provide a copy of each economic development assistance agreement it has entered into, a summary of all economic development assistance provided pursuant to such agreement, a summary and explanation of all the terms and conditions of such agreement and the extent of compliance with such terms and conditions and the project to which each such agreement relates. Every recipient will, in a timely and accurate manner regularly update all such information.

Section One - states all information required will be made available to the public and will be posted and made available online, on the website of the recipient.

Section One - states on or before the first January, April, July and October; each recipient will submit to the secretary of the state, all information required to be made available to the public.

Section Two - states this act shall take effect on the first September next succeeding the date on which it shall has become a law.

Justification

Any corporation or business receiving any direct or indirect benefits they receive from NY taxpayers must be held accountable. Corporations in New York State have received hundreds of millions of dollars from hard working taxpayers, while simultaneously outsourcing jobs across seas and laying off New York State residents.

It is the role of legislators to hold these corporations who receive any kind of economic development funds from the state, accountable for doing what the money was intended to do, and that is creating jobs.

This legislation will mandate corporations that receive any kind of economic assistance from the state, to provide a summary and explanation of all the terms and conditions of the agreement they have entered in. These corporations will also be responsible to provide the extent of compliance the terms and conditions.

This bill will also provide transparency, by requiring these businesses to make the above mentioned information available to the public, specifically on their website. Any corporation receiving economic development assistance from the state will be required submit the above mentioned information to the secretary of state on or before the first January, April, July and October of each year.

Legislative history

New Bill.

Fiscal implications

None.

Effective date

This act shall take effect on the first September next succeeding the date on which it shall has become a law.