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- Reported and committed to finance
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Enacts the "just and open business subsidies act (JOBS act) of 2014"
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Sean Ryan
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6870
Title of bill
An act to amend the public authorities law, in relation to enacting the "just and open business subsidies act (JOBS act) of 2014", in relation to the reporting and collection of information, evaluation criteria, subsidy recapture, and restrictions on the funding of public financial assistance for private economic development
Purpose or general idea of bill
regulate the use of subsidies by state and local authorities. Make the process more transparent and hold accountable those entities which receive such subsidies.
Summary of specific provisions
Section One: Legislative findings
Section Two: Title
Section Three: Definitions
Section Four: Adds sections 2990-2999 to the Public Authorities Law.
§ 2990: Requires all applications to state or local authorities to be submitted through the consolidated funding application ("CFA"). This section also outlines the rights and responsibilities of the authorities as it relates to the CFA.
§ 2991: Requires authorities offering subsidies to enter into a financial assistance agreement with the recipients of such subsidies.
§ 2992: Requires open meetings and public access to the documents used to determine whether to offer a subsidy.
§ 2993: Allows for authorities to recapture all or some of the money given as a subsidy when benchmarks (i.e., job creation, etc.) agreed to by the recipient fall short of success.
§ 2994: Requires the Department of Taxation and Finance to submit an annual budget accounting for uncollected tax revenue and an accounting of certain subsidy recipients.
§ 2995: Restricts the subsidizing of projects that do not meet minimum standards or violate the requirements discussed in § 2995.
§ 2996: Requires board representatives to meet certain criteria, including disqualification for appointment to the board if conflicts of interest or ethical conflicts exist.
§ 2997: Targeted hiring and the percentage of local hires which must be included in certain instances.
§ 2998: Payment in lieu of taxes restrictions.
Section Five: Amends subdivisions I and 2 of section 2800 of the Public Authorities Law to require annual reports and accounting of projects subsidized by the authorities and personal accountings by members of the local authorities.
Section Six: Effective date.
Justification
Industrial Development Agencies (IDAs) and other State and local authorities provide at least seven billion dollars annually in tax subsidies to select businesses. These tax subsidies too often force other taxpayers to pay higher property taxes or to suffer reductions in key services. Further, in the few programs where sufficient data is available, subsidies have had little or no impact on the economy, job creation, or the standard of living for workers. Given the desperate need for job creation in New York, but also taking into account the potential for waste in this multibillion dollar system, it is imperative that New York protects its taxpayers by taking stock of this "back-door spending," and assessing its effectiveness at job creation and economic development. The poor choices which many IDAs and other economic development authorities continue to make are, in part, due to a lack of oversight and accountability. This bill will provide the necessary oversight to ensure that New York taxpayers get their money's worth from their substantial investment in economic development.
Prior legislative history
New bill.
Fiscal implications for state and local governments
To be determined.
Effective date
This act shall take effect on the ninetieth day after it shall have become a law, provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized to be made and completed on or before such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.