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Who cares
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Sponsors
No co-sponsors yet.
History
- Referred to commerce, economic development and small business
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.
Relates to requirements for economic development grants
In Assembly Committee · Economic Development · Sponsor Harry B. Bronson
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7627
Title of bill
An act to amend the economic development law and the state finance law, in relation to economic development grant recipients
Purpose or general idea of bill
The intent of this legislation is to provide a mechanism by which the state can recover certain economic development grant funds from any person or business organization that reduces the number of New York State employees up to five years after having received financial assistance from the state.
Summary of specific provisions
Section 1 adds a new paragraph to subdivision 19 of section 100 of economic development law to adopt regulations to establish terms and conditions of repayment of state grants.
Section 2 adds section 11-a to state finance law to establish regulations for economic development grant recipients and conditions under which the grants must be repaid to the state.
Section 3 sets the effective date.
Justification
Clawback provisions are common and necessary for a majority of business transactions. Each year, New York State offers tens of millions of dollars in grant funding to foster economic growth and attract new businesses. However, in cases when these same businesses decide to leave New York State or reduce their New York State employee base, taxpayers may still be left paying the bills. This legislation would provide that grantees shall not reduce the number of New York State employees upon receiving financial assistance from the State or up to five years after receiving such assistance, unless the full amount of the grant and a penalty is repaid to the State. This clawback mechanism is designed to protect taxpayers from continuing to fund businesses that have moved their workforce out of New York State.
Prior legislative history
New bill
Fiscal implications for state and local governments
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.