Creates the business employment incentive program

Summary of specific provisions

The economic development law is amended by adding a new article twenty-one (21) that will include the following provisions:

Section 430: Provides a general description of the BEIP and its mission to create new jobs, provide business incentives with grants, and ensure that proposed projects will be economically sound benefiting the people of New York.

Section 431: Project Requirements. provides qualifications for businesses including creation of at least 75 positions or at least 25 positions in targeted areas in the base years. This section is applicable to landlord/tenant relationships whereby landlords may apply to the department for a grant. Projects that consist of point of final purchase retail facilities are not eligible for funding under the article.

Section 432: Grant application. Businesses are required to apply for a grant on a prescribed form and must disclose the name of the business; any addresses; principals or management and their respective names and addresses; the nature or form of the business; the number of proposed jobs that will be created; recent financial statements; and estimates of total withholdings. In addition, a business may apply in one consolidated application or on behalf of its members, if the business is an association.

Section 433: Incentive agreement. provides that the business employment incentive agreement is required to include, but is not limited to, a detailed description of the proposed project which will result in job creation; the term of the grant; a requirement that the applicant maintain the project at a location in New York for a designated term; a method for the new project to report to the department; and a termination condition.

Section 434: Applicants will be required to submit to the department a copy of its applicable New York State tax return together with an annual report, and may be require to submit to an audit by the department.

Section 435: Failure of business to comply; circumstances. The department will have the authority to adjust or terminate the grant

agreement if the applicant does not meet any of the conditions or requirements.

Section 436: Disbursement conditions. Approval by the State Comptroller is required before any amount of the grant is disbursed. The approval will consist of certification of the applicant's tax and withholdings estimates.

Section 437: Grant limitations. Approval from the State Comptroller will be required if an applicant will be receiving two or more state awarded grants that when combined, exceeds the total of eighty percent of its withholdings or fifty percent of the estimated tax.

Section 438: Implementation, study. The department will conduct a study to determine the minimum funding level to implement the program successfully.

Section 439: Fees. Each applicant will be charged application and administrative fees as determined by the department.

Section 440: Rules. The department will have authority to implement provisions and rules that will clarify the application process.

Section 441: Annual report. The department will be required to supply the Governor; temporary president of the senate, and speaker of the assembly with an annual report on or before October thirty-first of each year. The report will consist of information pertaining to the agreements, grant disbursements, jobs created, and revenue tallies.

Justification

New York has demonstrated an interest in strengthening the economy by displaying a pro-business and pro-growth commitment. In order to further facilitate economic development, it is important to continue to create opportunities that will make New York an attractive place to establish businesses, expand pre-existing businesses, and offer a diverse job market. Further. strengthening New York's economy is the primary goal of this legislation; encouraging new and expanded corporate facilities, while creating jobs for the people of New York, is the fundamental way to satisfy this goal. This legislation will offer incentive grants from new jobs created when a business relocates to New York or expands a business in the State.

Moreover, for New York to prosper, government must recognize and capitalize on the infinite variety of locations for business development, from sophisticated urban environments to high-tech research parks, and from high traffic retail centers to rural industrial tracts. In order to foster job creation and corporate opportunities, this legislation will enable ESDC to enter into agreements with businesses to provide business employment incentives and grants. The department's program will encourage businesses to propose projects that will be economically sound and benefit the people of New York by increasing opportunities for employment.

Legislative history

A.9662-A of 2002 A.1437/S.1418 of 2003-2004 A.3308/S.3052 of 2005-2006 A.4570/S.6692 of 2009-2010

Fiscal implications

Undetermined.

Effective date

This bill will take effect on the first of January next succeeding the date on which it shall have become a law.