Makes various provisions to reform local development corporations and industrial development agencies: conflicts of interest, standard tax exemption policies, etc.

BILL NUMBER:S915A

Title of bill

An act to amend the not-for-profit corporation law and the general municipal law, in relation to reforming local development corporations and industrial development agencies

Purpose or general idea of bill

To provide greater transparency, oversight and increased public participation in the operation of LDCs and IDAs.

Summary of specific provisions

Section 1 adds a new paragraph (j) (1) to the not-for-profit law that regulates who may serve on LDC boards and be employees of LDCs to mitigate conflict-of-interest. Paragraph (j) (2) creates new reporting requirements.

Section 2 amends the general municipal law that regulates who may serve on IDA boards to mitigate conflict-of-interest.

Section 3 regulates the size and composition of the agency

Section 4 creates a standard tax exemption policy for IDAs and creates other reporting requirements.

Section 5 creates greater municipal input. It allows local governments to have input and decision-making power on LDC and IDA bonding, contracting and eminent domain powers.

Section 6 requires the comptroller to prescribe rules on standardizing the calculation of tax benefits for IDAs and LDCs.

Section 7 requires "economic impact statements" be completed for major projects. This is similar to the environmental impact statement process. Amends requirements for publishing guidelines and makes technical amendments to the public hearing process.

Section 8 requires any lease payments, revenues or other earnings of the agency shall be paid to the local governing body of the municipality for whose such benefit the agency has been established.

Section 9 places a deadline of October 12, 2013 as the deadline for IDA's to issue any further bonds or notes.

Section 10 requires that public works projects let be the agencies create jobs that pay the prevailing wage.

Section 11 Effective Date

Justification

There is little oversight over LDCs and IDAs but both entities have tremendous power in local economic decision-making. While they serve important functions, there needs to be greater transparency, oversight and accountability; especially when taxpayer money is used.

This bill would. add greater transparency by the addition of new standardized reporting requirements, provides greater local public input by creating an "economic impact statement" process, creates news rules governing board membership, makes sure that jobs created from subsidies pay prevailing wages and provides for greater input by local governments in the decision-making process of the entities.

Prior legislative history

A.6904 of 2005-06. A.1330 of 2007-2008.

Fiscal implications

None known.

Effective date

This act shall take effect on the sixtieth day after it shall have become a law; provided that the amendments to subdivision 10 of section of section 859-a of the general municipal law made by section six of this act, shall be subject to the expiration and reversion of such subdivision pursuant to section 8 of chapter 444 of the laws of 1997, as amended, when upon such date the provisions of section seven of this act shall take effect.