Extends certain provisions relating to the empire state economic development fund until 2015

BILL NUMBER:S5570

Title of bill

An act to amend the urban development corporation act, in relation to extending certain provisions relating to the empire state economic development fund

Purpose: This bill would extend the effectiveness of the Empire State Economic Development Fund (the "EDF") for two years.

Summary of Provisions:

Section 1 of this bill would amend subdivision 3 of Section 16-m of the Urban Development Corporation Act (the "UDC Act"), L. 1968 c. 174, to extend the authority of the Urban Development Corporation ("UDC") to disburse funds from the EDF until July 1, 2015.

Section 2 of the bill would make the act effective immediately.

Existing Law: The EDF was created in 1996 with the adoption of Section 16-i of the UDC Act, L. 1996 c. 309 § 105. After annual extensions through 2001, this section of the UDC Act expired and was replaced in 2002 by Section 16-m of the UDC Act, L. 2002 c, 84 pt. N. Like its predecessor, Section 16-m contained a sunset provision that was serially extended through the 2012-2013 fiscal year. Section 16-m is currently set to expire on July 1, 2013.

Prior Legislative History:

Section 1.6-m of the UDC Act was previously extended by L. 2003 c. 62 pt. M1 § 5; L. 2004 c. 59 pt. W § 1; L. 2005 c. 59 pt. O § 1; L. 2005 c. 756 § 4; L. 2007 c. 57 pt. O § 3; L. 2008 c. 59 pt. KK § 1; and L. 2012 c. 58 pt. S § 1.

Statement in Support: This bill would provide for the smooth administration of the EDF, UDC's primary-economic development program. Because it is often not possible for UDC to disburse all of the funding appropriated to the EDF during any given fiscal year, the Enacted Budget frequently provides for reappropriations to the EDF. The expiration of the provisions of the UDC Act providing the authority to make grants and other types of financial assistance with funds appropriated to the EDF has the unintended effect of eliminating UDC's authority to properly disburse reappropriated funds as well as its authority to commit new program funding.

In addition to reappropriating approximately $83,708,000 of undisbursed funding from prior years, the 2013-2014 Enacted Budget appropriates $31,180,000 in new funding to the EDF. Extending the sunset date of Section 16-m of the UDC Act will permit UDC to use these funds to fulfill prior commitments made through the EDF and to make new assistance available to businesses and other stakeholders throughout the State without interruption.

Fiscal Implications: Enactment of this bill is necessary to implement the 2013-14 Enacted Budget, which includes new appropriations and reappropriations to support the EDF.

Effective Date: This bill would take effect immediately.